Recently, there has been an increase in fraudulent activities that deceive people into believing they are selling high-priced electronics cheaply due to broken engagements and divorces, while only pocketing the money. Although the operators of used transaction platforms aim to voluntarily sanction fraudulent transactions, it has proven to be insufficient.
◇ "Selling household appliances due to divorce... the installer will come if the payment is made"
According to the retail industry on the 20th, a person surnamed A living in Pohang, North Gyeongsang Province, saw a post on the used transaction app Carrot in February stating that the latest electronics were being sold at a low price and decided to make a purchase. The seller claimed they were in a hurry to dispose of household appliances that had been used for less than a year due to a divorce. Thinking they could buy nearly new appliances at a low price, A decided to purchase six types of electronics, including an LG DIO Object Collection refrigerator, washing machine, dryer, air conditioner, stick vacuum cleaner, TV, and microwave, for a total of 4.8 million won.
However, the timing for receiving the goods did not match. A stated that due to circumstances, they could not pick up the items until May, and the seller sent A their NongHyup account number, urging, "I can't wait as I'm selling due to a divorce. If you entrust it to the LG Electronics service center, the installer will come at the desired time," pressuring for a quick purchase. The seller shared a photo of the products loaded onto a truck to reassure A. During this process, A also received a text message from the LG Electronics installer.
However, A, feeling uneasy about depositing a large sum of money before receiving the items, inquired with the LG Electronics service center whether there was a transaction associated with that seller, and confirmed that there were no previous installation records linked to the seller's contact information. LG Electronics advised A, "The seller agreed upon is not answering the phone and cannot be traced, so do not proceed with the transaction and file a report." When A informed the seller of this information, the seller made excuses, claiming it was registered under their wife's number, and then disappeared, threatening to sue A.
A stated, "The photos were manipulated, and the address was fake," adding, "It turned out there were many similar cases. I reported it several times to Carrot, but it seems they have no intention to catch them."
◇ Selling stories while pocketing money... Alert for scams on used transaction apps like Carrot
Fraudulent acts that deceive people into believing they are selling high-priced electronics cheaply due to broken engagements, divorces, and breakups are on the rise on used transaction apps. Sellers either post photos of LG or Samsung electronics circulating on the internet to pretend they are selling their items, or they send messages as if they are receiving contact from an official service center for previous installations to induce the buyer to deposit money into their account before blocking all communication.
In an online community, there was a person who deposited money after seeing a post stating 'Selling a washing machine for 1.7 million won due to a broken engagement,' only to find out they did not receive the item. The seller purportedly pressured the buyer to make an advance payment, stating they would send the item via courier instead of a direct transaction.
According to Naver Data Lab, the search volume related to 'Carrot divorce scam' has seen a significant rise this month. Among used transaction consumers, new terms such as 'divorce edition' and 'engagement edition' have emerged, signifying fraudulent behaviors selling stories.
In addition, there are specialized methods where Chinese low-cost electronics, which are unfamiliar to domestic consumers, are registered at more than five times the actual price on Coupang or Naver Smart Store and then sold for more than new products on used transaction apps. This is to induce purchases by appearing overpriced in price comparison searches on portal sites.
There are suspicions among consumers that these fraudulent activities are occurring simultaneously nationwide, suggesting some level of organization. One consumer remarked, "If you search, you'll find similar photos and phrases selling electronics from various regions," and added, "If transactions are carried out in a similar pattern, I believe that the platform should send warning messages to buyers."
◇ Regulatory blind spot in C2C... Fair Trade Commission seeks to provide personal information to the court in case of disputes
The reason such damages are increasing in the used transaction market is due to the lack of regulations to sanction disputes when they occur on consumer-to-consumer (C2C) platforms. The 'Consumer Basic Law' protects consumer rights based on transactions between corporations and consumers (B2C), making it difficult to regulate consumer damages that occur in C2C transactions. The 'Electronic Commerce Act' also does not apply to C2C.
The industry has shown a tendency to emphasize self-regulation of the platform over regulation for the growth of the C2C market. This is based on the judgment that both sellers and buyers are consumers in C2C transactions, making it inappropriate for the government to intervene. As a result, in 2023, the Fair Trade Commission and Korea Consumer Agency (KCA) signed a voluntary compliance agreement with Carrot to ensure user safety and resolve disputes. As part of this, Carrot also published a casebook on dispute mediation at the end of last year.
A representative from Carrot stated, "In cases of posts that violate policies, we filter them through keyword monitoring and machine learning technology that learns post patterns and images, as well as user reports." They explained that for posts that evade monitoring, they are enhancing detection patterns and a list of banned words and that if identified as a professional seller, they would impose sanctions such as restricting service usage.
However, as the transaction volume in the used transaction market increases and cases of damage expand, there are signs that the government is taking action to establish systems for consumer protection. Recently, the Fair Trade Commission announced plans to amend the Electronic Commerce Act mandating that personal information be disclosed to legal dispute resolution agencies, such as courts, when consumer damages occur on C2C platforms.
A representative from a consumer organization stated, "In personal transactions, both sellers and buyers are consumers, which makes it difficult for national agencies to intervene. To enhance their brand value, platforms need to develop related guidelines.
A representative from Carrot urged, "As selling patterns become more diverse, users are required to pay attention," and added, "Please actively report if you find such types of posts."