Scammers exploit virtual banks to turn debtors into unknowing fraudsters

Social Affairs

Published: 29 Jan. 2024, 18:33

Scammers exploit virtual banks to turn debtors into unknowing fraudsters

A chat between a swindler who presented himself as a consultant at a savings bank and a victim who unknowingly provided her joint account to a swindler to launder criminal proceeds. The swindler instructs the victim about how to open a joint account at an online-only bank. [JOONGANG PHOTO]

Easy-to-open joint virtual bank accounts have become hotbeds of fraud as swindlers use them to launder stolen money.

Online-only banks — Kakao Bank and Toss Bank — allow users to create dozens of virtual joint accounts in a minute and deactivate them immediately. Thus, opening bank accounts has become easier than ever.

Today’s scam syndicates misappropriate the system by luring victims into opening accounts and using them to receive and launder extorted money.

Lee, 21, was one such victim whose joint bank accounts were exploited.

She found an online advertisement promoting “low-interest loans for delinquent borrowers.”

Lee, financially troubled, was tempted and reached out. She was connected to a swindler who presented himself as a consultant at a savings bank.

The swindler instructed Lee to open several joint accounts at online-only banks.

This would allow the scammers to receive criminal proceeds through Lee's account while hiding behind her name.

However, the swindler told Lee the more transaction records her bank accounts had, the higher her credit ratings and loan limits became.

The swindler said such transaction records could help her pay off her debts and secure another loan at low interest rates.

Buying the argument, Lee created joint virtual accounts at Kakao Bank and Toss Bank.

Unknown deposits ranging from 80,000 won to 6.4 million won ($59 to $4,788) began appearing in her accounts.

When she accumulated about 50 million won, the swindler, pretending to be a bank employee, directed Lee to transfer the funds to another bank account he said was managed by the bank.

After a few days, Lee learned she had unknowingly been implicated in fraud.

The self-claimed bank consultant turned out to be a member of a fraud syndicate, which operates mainly in online secondhand marketplaces and X, formerly known as Twitter.

He went off-grid after exploiting Lee’s new bank accounts as money laundering channels.

The list of bank accounts that received money from victims. Most of the accounts were joint bank accounts issued by online-only banks Kakao Bank and Toss Bank. [JOONGANG PHOTO]

The victims from the secondhand marketplaces sent the money to Lee’s account per the scammer’s instructions. On the surface, Lee appeared to be the biggest beneficiary.

They all accused Lee of involvement in the scam.

“I was also drawn into the fraud to pay back existing loans,” Lee told the victims, pledging her innocence and promising she would take full responsibility.

However, the people who sent money did not believe her.

Lee committed suicide last Tuesday.

“My daughter — Lee — was deceived and played by a deceitful crime scheme,” Lee’s father said.

Mokpo Police Precinct said Sunday that an investigation is currently under way. The authorities are conducting digital forensics on Lee’s mobile devices.

Lee received criminal proceeds from more than 400 victims nationwide.

According to the police, several other victims let scammers use their bank accounts in hopes of borrowing extra money.

Tracking the scammers is not easy because the fraud occurs in cyberspace.

“With dozens of fraud cases occurring at online secondhand marketplaces, the police need additional time to investigate whether all the complaints are against an identical criminal group or individual,” the police said.

“Online banks should bolster their verification measures given the clear malicious intent of scammers, even though the system aims to further customer convenience,” another victim said.

“The company will look into any complaints filed to our customer service department and cooperate with police in investigations,” a Toss Bank spokesperson said.

“If suspicious banking activities are detected, Kakao Bank sends a warning message to the users,” a Kakao Bank spokesperson said. “The company is developing its system to identify irregularities and suspend accounts.”

BY JEONG SAE-HEE, LEE SOO-JUNG [lee.soojung1@joongang.co.kr]