A ring that approached older adults saying it would "pay a salary," then had them set up shell companies and create burner bank accounts to use in voice phishing crimes, has been sent to prosecutors. Using these burner accounts, they laundered 120 billion won in voice phishing crime revenue.
The Seoul Metropolitan Police Agency's Criminal Mobile Unit said on the 16th that it had referred 31 people, including a man in his 60s identified as A and his son, a man in his 30s identified as B, to prosecutors on charges including violations of the Electronic Financial Transactions Act and the Act on Regulation and Punishment of Criminal Proceeds Concealment, as well as participation in a criminal organization. Six people, including ringleader A and B, were indicted and detained.
From Oct. 2019 to Apr. this year, the ring recruited older adults with no income in the South Gyeongsang area by saying it would pay a salary, established 114 shell corporations, and opened 485 burner accounts. Through these accounts, revenue of 122.8 billion won from 223 voice phishing crimes was deposited and withdrawn.
To keep the account holders from dropping out, the ring paid 1.5 million to 2 million won each month as a purported salary and also paid holiday bonuses. They also lured acquaintances such as the account holders' coworkers into the crime by saying, "If you set up a corporation, you can get money."
During withdrawals, to avoid arousing suspicion from the bank, an organization member disguised as a company employee accompanied the head of the shell company to make it seem like a legitimate corporate transaction. In such cases, the corporate representatives received a per-visit allowance of 10,000 to 200,000 won. The corporate representatives are believed to have obtained revenue of around 40 million to 50 million won.
There were also signs they prepared for a police investigation. Members instructed the account holders to give false statements such as, "We were only deceived by a claim that we could get a loan by opening a corporate account, and we did not receive any money." In some instances, they called during questioning and dictated a false-statement script.
After receiving a tip in May last year, police identified the shell corporations and accounts by analyzing account transaction histories. Starting with the arrest of three members in Mar. this year, police conducted search and seizure operations at the domestic ringleader's office and residence in May to Jun., securing 250 million won in cash and checks, luxury watches, and corporate bankbooks.
In the course of the arrests, police obtained a pre-indictment preservation order for criminal revenue worth about 3.4 billion won. They are also seeking to confiscate 4.2 billion won remaining in the burner accounts.
A police official said, "If you establish a false corporation or lend your name after being offered revenue, you will face criminal punishment," adding, "It could be exploited for voice phishing, so extra caution is needed."