Definition and characteristics of “electronic financial crimes”
Concept of “electronic financial fraud”
- "Telecommunications-based financial fraud" refers to any of the following deliberate acts to defraud a person of his/her property or make a third person take property gains through deceiving or extorting activities. Such acts include feigning the provision, arrangement, and brokerage of loans feigning the provision, arrangement, and brokerage of loans are included whereas feigning the supply of goods or services, etc. is excluded (Subparagraph 2 of Article 2 of the “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
- “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 2of the “Electronic Financial Transactions Act”).
Types and status of electronic financial crimes
Major types of electronic financial crimes
- Kidnapping scams, etc.
· Means in which a scammer, who acquired personal contact information, calls the parents using their child’s phone number and trick 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 doing military service had an accident, etc.)
- Requesting wire transfer by falsely assuming the name of 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 victim that was deceived
- 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 name illegal use of name, information leakage, involvement in criminal case, etc. as reason, 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
- 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
· 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, inducing to phishing site, making victim enter financial transaction information, receiving a loan under the victim’s name with the same information for defraud
- Defraud by deceiving victim and making victim transfer funds
· Falsely assuming the name of prosecution, police, Financial Supervisory Service, deceiving that someone impersonating the victim is attempting to withdraw funds, requiring for tracking transaction details, transferring to the account given by the fraudster and defraud
· Fraudsters obtaining college application records of a student, falsifying as the actual phone number of the college, calling the parents and student, and requesting payment of tuition