Definition and characteristics of “electronic financial crimes”
Concept of “electronic financial fraud”
- "Telecommunications-based financial fraud" refers to any of the following acts intended to obtain, or have a third party obtain, monetary or economic gain by fraud or extortion from other persons, using telecommunications: Provided, That feigning the provision, arrangement, and brokerage of loans shall be included whereas feigning the supply of goods or services, etc. shall be excluded (Subparagraph 2 of Article 2 of Special Act on the Prevention of Loss Caused by Telecommunications-based Financial Fraud and Refund for Loss).
· Inducing a person to remit or transfer money
· Remitting or transferring money after extracting personal information
· Delivering or causing money to be delivered
· Withdrawing money or having money withdrawn
- “Electronic financial transaction" refers to a transaction in which a finance company provides a user with a financial product or service via electronic devices and such user, without meeting or communicating directly with employees of finance companies, uses such product or service via automated means (Subparagraph 2 of Article 2-2 of the “Special Act on the Prevention of Loss Caused by Telecommunications-based Financial Fraud and Refund for Loss” and Subparagraph 1 of Article 2 of the “Electronic Financial Transactions Act”).
Types and status of electronic financial crimes
Major types of electronic financial crimes
- Kidnapping and accident scams, etc.
· Means in which a scammer, who acquired personal contact information, calls the parents using their child’s phone number and tricks them into believing that their child was kidnapped or gotten in an accident, thereby defrauding them of money (lying that their child in school or studying abroad was kidnapped, or their child in military service had an accident, etc.)
- Requesting wire transfer by impersonating as a friend/acquaintance
· Hacking other person’s online messenger ID and password, logging in, and requesting urgent funds for money, settlement money for accidents, etc. through 1:1 chatting or messages with family, friends, acquaintances, etc. that are already registered, and defrauding such after wire transfer from the decieved victim.
- Defraud of card loan payment and deposit through online banking
· After the credit card information (card number, password, CVC number) and online banking information (online banking ID, password, account number, certificate password, security car number, etc.) are obtained through phishing site by deluding the victim with excuses such as illegal use of name, information leakage, involvement in criminal case, etc., the fraudster receives a card loan under the victim’s name through ARS or online, defrauds by reissuing certificate and transferring card loan payment through online banking to the fraudster's own account.
- Defrauding deposit, etc. by inducing to phishing site by deceiving with fake urgent notification text message under the name of a financial company or Financial Supervisory Service
· After sending a text message as if it is a notice (security promotion, confirmation of information leakage damage, etc.) from a financial company or Financial Supervisory Service, the fraudster induces the victim to phishing site, makes him/her enter financial transaction information, then receives a loan under the victim’s name using the same information
- Defraud by deceiving victim and making victim transfer funds
· While falsely assuming the name of prosecution, police, Financial Supervisory Service, the fraudster tells the victim that someone is impersonating the victim to withdraw funds, the fraudster demands the tracking transaction details, and has the victim transfer to his/her account
· While obtaining college application records of a student and falsifying as the actual phone number of the college, the fraudster calls the parents and student, and request payment of tuition