The Korea Federation of Micro Enterprises (소공연) said on the 17th that measures are needed to eradicate the 'no-show fraud' occurring in restaurants and bars.
No-show fraud refers to the act of making a reservation for a large number of people but failing to show up at the reserved venue without notifying the establishment.
In a statement that day, 소공연 emphasized, "No-show fraud, which exploits legal blind spots, is a heinous crime that preys on already struggling small business owners, and it must be eradicated quickly."
According to the Korean National Police Agency, a total of 537 cases of no-show fraud occurred from February last year to March this year. Among these, 461 cases (85.8%) occurred within four months from December last year.
소공연 explained, "Recently, no-show fraud has been occurring in an organized manner, beyond personal crimes, as existing overseas voice phishing organizations have set their sights on small business owners and self-employed individuals."
Although similar damages are increasing, the current Telecommunications Fraud Damage Compensation Act only applies to impersonation-type and loan fraud-type phishing, with no-show fraud excluded. Consequently, compensation for small business owners is difficult due to the exclusion of regulations regarding the suspension of fraudulent account (dummy account) payments and victim reimbursement processes.
소공연 stated, "A government-wide response and legislative improvements are needed for no-show fraud," adding that "the police must engage in nationwide cooperation to dismantle no-show fraud organizations, and the political sector must pursue legislative improvements that can eradicate the damage to small business owners." It further noted, "We plan to carry out private sector efforts, including campaigns to raise awareness among small business owners to eliminate the damage to their livelihoods."