Korean-Chinese Crime Ring Scams 12.2 Billion Won Through Romance Fraud

A joint Korean-Chinese criminal organization has been apprehended by the Busan Police Agency for allegedly defrauding victims of 12.2 billion won (approximately $9.2 million) over an eight-month period. The group posed as Korean foreign women on social media platforms to establish romantic connections, ultimately leading victims to invest in fake cryptocurrency and other fraudulent schemes.

The police reported that 12 individuals, including a 20-year-old Korean ringleader (referred to as A) and a 30-year-old Chinese manager (referred to as B), have been arrested and charged with violations of the Specific Economic Crimes Aggravated Punishment Act (fraud) and participation in a criminal organization. Additionally, eight accomplices have been sent to trial without detention.

According to the police, from January to August, the group recruited members in their 20s and 30s in South Korea and transported them to Cambodia and Laos. They employed a 'romance scam' strategy, gaining the affection of victims to swindle money from them. The organization reportedly defrauded 84 victims, amassing a total of 12.2 billion won.

The criminals operated a 'romance scam' organization in Cambodia and a money laundering operation in Laos. They used profiles featuring images of Korean foreign women to engage with victims, building rapport through casual conversations for over a week. Once trust was established, they directed victims to join fake investment websites, encouraging them to invest in virtual assets, gold futures trading, and online shopping ventures.

Victims were swindled out of amounts ranging from 1 million won to as much as 2 billion won. The police noted that the victims, predominantly male and aged between 20 and 70, have been confirmed to number at least 84 so far.

Investigations revealed that the group incentivized their members based on the amount of money scammed, implementing bonuses, fines, and promotions within their ranks. They operated their schemes discreetly in Cambodia and Laos.

The police stated, "The money obtained from these scams was lavishly spent on entertainment at local hotels and clubs. When they achieved a record daily scam amount of 1 billion won in January, they even celebrated with a fireworks party in Cambodia."

The investigation began in April following a report from a victim, leading to the arrest of 20 members of the organization. Authorities are currently tracking accounts linked to the group and have issued Interpol notices for six individuals, including the Chinese ringleader, who are believed to be abroad.