Insta-scam: Impersonation of Hyundai, Samsung chiefs leads to fraud concerns

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Insta-scam: Impersonation of Hyundai, Samsung chiefs leads to fraud concerns

Published: 16 Dec. 2024, 15:57 Updated: 16 Dec. 2024, 19:34

SARAH CHEA
[email protected]

Audio report: written by reporters, read by AI

[GETTY IMAGES BANK]

Impersonator accounts on social media are extending from celebrities and politicians to business figures, igniting anxieties over possible threats to deceive the public and extract trade secrets.

From Samsung Electronics to Hyundai Motor Group, the scammers attempt to capitalize on the names of Korea’s major companies, raising calls for strengthened punishments to crack down on the impersonations.

The Seoul Metropolitan Police recently launched an investigation into multiple social media accounts impersonating Sung Kim, a former U.S. diplomat who was recently named president of Hyundai's think tank specializing in strategic planning, according to multiple local reports.

Sung Kim

More than 14 Facebook accounts impersonating Kim have sprung up with a photo and profile, including education details. Some of them falsely claim to be his official account.

In fact, an account impersonating Kim reportedly sent a message to a Hyundai Motor employee seeking personal information, although the attempt ultimately failed.

Of all online posts impersonating celebrities and public figures, around 80 percent were found on social media, while the rest were from blogs and online communities.

An Instagram account impersonating Samsung Electronics Executive Chairman Lee Jae-yong was recently deleted after deceiving many individuals by posting messages pretending to be him.

The account, which was originally a fan page of Lee with 450,000 followers, uploaded a photo of him having eomuk (fish cakes) in a traditional market in Busan, which went viral online. The post said, “My visit has caused a big butterfly effect, and I appreciate everyone,” which deceived followers into believing that the comment was from the chairman.

There have also been many similar cases with accounts pretending to be former Hanwha Investment Securities CEO Joo Jin-hyeong and former Meritz Asset Management CEO John Lee to induce illegal investments.

A total of 2,517 cases of illegal stock investment inducement were reported between last September and February of this year, including through the impersonation of public figures, with the damages amounting to some 237.1 billion won ($165.2 million), according to the National Police Agency.

In July of last year, a social media account impersonating Tesla CEO Elon Musk extorted some 70 million won from a Korean woman. The account used a deepfake of Musk in a video call with her, during which the perpetrator falsely "proved" his identity with a fake passport.

Samsung Electronics Executive Vice Chairman Lee Jae-yong, left, and President Yoon Suk Yeol taste eomuk, or fish cakes, at a traditional market in Busan on Dec. 6 last year. [PRESIDENTIAL OFFICE]

Under Article 70 of the Act on Promotion of Information and Communications Network Utilization and Information Protection, the use of communications networks to publicly reveal facts that defame others can be punished with up to three years in prison or a fine of up to 30 million won.

The dissemination of defamatory facts using a fake account results in an increased punishment of up to seven years in prison, a suspension of civil qualifications for up to 10 years, or a fine of up to 50 million won.

Laws to punish the creation of impersonating accounts, regardless of purpose or usage, have already been proposed and are under discussion in the National Assembly. The proposal intends to punish perpetrators with 1 year in prison or 10 million won of fine.

Other countries like the United States and Canada have already instituted penalties for such activity, but only if the accounts are set up for the purpose of extortion of some kind.

BY SARAH CHEA [[email protected]]