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Online shopping scams up 25% in 2024 from previous year: Data

Published: 31 Mar. 2025, 13:46 Updated: 31 Mar. 2025, 16:01

The site for an online shopping mall called Ikkeullim which generated 118 complaints that advertised a “special thank you event” and sold ramen at a low price. [SCREEN CAPTURE]

Scams targeting consumers looking for small but certain pleasures have been on the rise in Korea’s online shopping space. Fraudsters are exploiting low-price deals to lure buyers into paying small amounts individually, which collectively add up to substantial sums before the perpetrators disappear.

The Seoul Metropolitan Government on Monday released an analysis of consumer complaints submitted to the Seoul Electronic Commerce Center in 2024. According to the data, a total of 8,056 complaints were received, a 25 percent increase from 2023.

Internet shopping malls accounted for the largest share of cases with 3,898 complaints, or 48.4 percent, followed by online marketplaces with 1,428 cases or 17.7 percent, online services such as airline tickets and accommodation bookings with 1,291 cases or 16 percent, and peer-to-peer transactions with 579 cases or 7.2 percent.

By category, delays in cancellation, returns or refunds were the most common issue, representing 3,903 cases, or 48.5 percent. Other major categories included fraud and deception, with 998 cases or 12.4 percent, sudden business closure or unresponsiveness, with 976 cases or 12.1 percent, and shipping delays with 849 cases or 10.5 percent.

One of the worst offenders was an online store called Oops Mall, which received 552 complaints. Another company, operating under the name Agricultural Products Distribution Center Ddengcheori, had 165 cases linked to sales through platforms like Karrot Market and online commerce channels. A separate online store called Ikkeullim also generated 118 complaints.

These scams share a common pattern: luring customers with large discounts on products compared to market prices. Oops Mall, for instance, advertised Ugg boots that typically sell for about 90,000 won ($61) at a reduced price of around 50,000 won. After collecting payment, the store delayed delivery with vague explanations, such as “delays due to complaints about counterfeit concerns,” claiming the product would arrive in one to three weeks — before disappearing entirely. The tactic resembles scams popularized by the now-notorious “Style V” method.

Ddengcheori used similar tactics. Claiming to sell farm products like kimchi at steep discounts by cutting out middlemen, the site attracted buyers through platforms like Danggeun Market. It stalled deliveries by citing supply issues, offering tangerines as free gifts, before eventually shutting down its KakaoTalk customer service channel.

A post complaining about fraud at an agricultural and marine products distribution center. [SCREEN CAPTURE]

Ikkeullim ran “special gift promotions,” advertising a bundle of 20 packets of Shin Ramyun instant noodles for just 6,900 won. But once customers placed orders, the store canceled them unilaterally, blaming “server issues due to high traffic.” Below the noodle promotion, a link offered Dyson hairdryers — normally priced at 699,000 won — for 340,000 to 380,000 won. The scheme used heavily-discounted prices to bait users into purchasing high-value products, only for the scammers to vanish after receiving payment.

In terms of product categories, clothing was the most commonly reported, accounting for 1,594 cases or 19.8 percent, followed by travel and lodging services with 1,261 cases or 15.7 percent, footwear, bags and fashion accessories with 1,107 cases or 13.7 percent, and leisure, culture and toys with 721 cases or 8.9 percent.

A text message notice from a shopping mall that is announcing a delivery delay to buy time to attract more customers. [SCREEN CAPTURE]

Notably, complaints related to travel and lodging services rose significantly, with 1,261 cases reported in 2023 — 3.6 times more than the year before. Among these, 1,115 cases, or 88.4 percent, involved disputes over cancellation fees for airline tickets, a more than fourfold increase from 2022.

The Seoul government estimates the financial damage from these scams at approximately 118.46 million won in 2023. Authorities have published the names of the offending businesses online and are working with credit card companies to facilitate compensation.

“Beyond the reported scam damages, we secured refunds totaling 1.02 billion won for 3,691 cases last year, and mediated 1,108 cases through contract enforcement, product exchanges or settlements,” said Kim Myeong-seon, head of Seoul’s Fair Economy Division. “We’re building hotlines with major e-commerce platforms to resolve consumer issues more swiftly and minimize harm.”

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff

BY MOON HEE-CHUL [[email protected]]