As the KOSPI topped 5,000 at the start of the year and the KOSDAQ broke through 1,000, showing an overheated stock market, illegal paid stock-tip chatroom scams are spreading, with scammers posing as employees of well-known securities firms and luring investors with promises of high returns to steal their money. In response, the Financial Supervisory Service issued a consumer alert and urged investors to exercise special caution.
The Financial Supervisory Service (FSS) said on the 26th that it issued a consumer alert, "caution," over illegal stock-tip chatroom investment scams.
According to the Financial Supervisory Service (FSS), illegal operators entice investors by claiming to provide premium information and, through related links, induce them to enter illegal stock-tip chatrooms such as group chats. They then press investors to install fake stock-trading apps crafted so elaborately that it is hard to distinguish them from securities firm applications.
In the process, the operators exploit artificial intelligence (AI) deepfake technology to impersonate real experts, deftly disarming investors' doubts and gaining their trust.
At first, they make it appear as if the investor realized profits through the illegal tips, then show this to the investor to allay doubts and induce a deposit of investment funds. Afterward, when the investor asks to have investment funds returned in relation to the profits or losses, they make various excuses, refuse to return the funds, or cut off contact to embezzle the money.
Recently, they have also been found to use a method of taking advantage of the stock market boom by having investors "bet" certain amounts on derivatives such as futures linked to stock indexes, then stealing the funds and fleeing.
To counter these scams, the Financial Supervisory Service (FSS) stressed the need to be wary of people who approach while introducing themselves as employees of well-known securities firms and to always contact the financial company's customer center to verify current employment. Because the phone number on a business card could be fake, investors should look up and call the company's main number directly.
It also urged people not to conduct any financial transactions with entities that invite them to group chatrooms via links and induce the installation of stock-trading apps. The Financial Supervisory Service (FSS) plans to strengthen related monitoring going forward.
An official at the Financial Supervisory Service (FSS) said, "Damage from transactions with operators outside the institutional financial sector is not subject to the FSS's dispute mediation, making relief difficult," adding, "If illegal financial investment fraud is suspected, it is important to secure related evidence such as investment recommendations and solicitations to install private stock-trading apps and report it to the FSS or investigative authorities."