A ring that managed illegal gateways that make overseas calls or internet numbers such as "070" appear like domestic mobile numbers, helping so-called "no-show" (No-show, large-scale fake orders) scams, has been handed over to prosecutors. The scam losses traced to the gateways they managed are estimated at 140 million won.
A no-show scam involves impersonating officials at public agencies, military units, or large companies to place bulk orders or reservations with restaurants and lodging businesses, then stealing the money. The scammers first build trust in the reservation, then ask the victim to purchase expensive goods or ingredients from a specific vendor on their behalf, and cut contact once the victim sends the money.
The North Jeolla Provincial Police Agency's Metropolitan Investigation Unit said on the 9th that it had arrested and referred four people, including A, the gateway manager, on charges of violating the Telecommunications Business Act. From March to May, A and others allegedly installed communications equipment such as mobile phones and USIMs (USIM, subscriber identity module) in four studio apartments in North Jeolla and managed caller ID spoofing gateways used by no-show scam rings. Police seized 303 mobile phones used in the crimes, eight routers (network connection devices), and 1,969 USIMs at the scene.
A caller ID spoofing gateway is a device that makes internet numbers such as "070" or numbers from overseas appear to start with "010," the prefix for domestic mobile numbers. Because a domestic number is displayed on the recipient's phone, it is hard to notice that the call is an overseas scam.
Police said five no-show scam cases occurred nationwide through the gateways managed by A and others. The losses total about 140 million won.
A and others was found to have joined the crimes after receiving offers from criminal rings via social media (SNS). The criminal rings reportedly recruited managers by saying they could make money by managing mobile phones at home and swapping USIMs.
Police opened an investigation after receiving intelligence that illegal gateways were operating in an area dense with studio apartments. They then raided four studio apartments, arrested the managers, and secured the communications equipment.
Police are tracking the ring that directed A and others to commit the crimes, as well as the suppliers of communications equipment such as mobile phones and USIMs. They also plan to continue investigating the group that carried out the actual no-show scams and those who provided their identities.