Kakao Pay cautioned users, saying Ponzi schemes (multilevel financial fraud) and phishing application (app) installations have been increasing recently.
Kakao Pay said on the 23rd that, according to detections by its in-house security service Kakao Pay Vaccine, the number of newly emerging malware (malicious code) related to virtual asset fraud, which averaged 2,000 cases in early this month, surged to 6,000 cases in mid-month. A total of 82,812 instances of malicious code were detected over two weeks through the 21st of this month.
The detected malicious code is mainly malicious apps that lure users into virtual asset Ponzi schemes by dangling artificial intelligence (AI) trading and high returns. In response, Kakao Pay advised caution regarding investments that tout principal guarantees and fixed high returns, and urged users to install apps only from official app stores such as Google Play or the App Store.
A typical tactic is to promise substantial rewards after verifying revenue in so-called "reading rooms" that share investment information via mobile messengers, then induce victims to install a specific app. Kakao Pay suggested frequently checking smartphones by using professional security services such as Kakao Vaccine.
Kakao Pay said, "As phishing tactics that deceive people with difficult technology and financial terms are diversifying, proactive responses by platforms are important," adding, "We will further advance our security solutions to protect consumers from various financial security threats."