#Payment gateway (PG) company A recruited organizations operating voice phishing and illegal gambling sites disguised as general shopping malls as affiliates and provided them with virtual accounts. In exchange for transferring the funds deposited in these accounts for voice phishing victims and gambling money to the designated accounts of criminal organizations, A company pocketed substantial fees. The Financial Supervisory Service discovered this fact and requested an investigation by the police, leading to a joint investigation by the prosecution and police, resulting in the indictment of A company's CEO.
#PG company B's CEO created a paper company in his name, generated false credit card receivables, and then received linked loans from P2P companies using these as collateral before misappropriating the loan funds. The prosecution has sought a 30-year prison sentence and a fine of 40.8 billion won against B company's CEO for fraud and embezzlement.
Recently, it has been confirmed that small PG companies are providing virtual accounts for illegal activities or directly participating in crimes such as fraud and embezzlement to expand their sales. The FSS plans to impose strict sanctions on PG companies found to be engaging in unsound and illegal business activities.
According to financial authorities on the 22nd, the FSS established a continuous monitoring system for virtual account transactions in the first half of this year and conducted on-site inspections of six PG companies that showed abnormal signs during the monitoring process. The FSS notified investigative authorities of the PG companies confirmed to be illegally involved.
The FSS collects and analyzes the transaction histories of virtual accounts provided by PG companies to their affiliates monthly through the continuous monitoring system for virtual account transactions, identifying suspicious affiliates. If abnormal signs are detected, the FSS selects companies for close surveillance.
The FSS stated that it would impose severe sanctions on PG companies where violations are detected to eradicate unsound business practices. It also said that it would enhance the continuous monitoring system and actively respond to problematic PG companies through thematic inspections.
The FSS noted that it would strengthen cooperation with investigative authorities to ensure that substantive exits are made through legal procedures for PG companies involved in crimes such as illegal gambling and voice phishing.