South Korean Government Official Arrested for Crypto Fraud and Voice Phishing Scam
A South Korean civil servant in her 50s has been taken into custody on charges of engaging in cryptocurrency fraud and carrying out voice phishing attacks. The accused, who holds a level six position at the district office, allegedly received money from multiple victims and converted the funds to Bitcoin. She then transferred the digital assets to a member of a voice phishing gang.
The arrest was made by police in Seoul’s Dongdaemun District, who have charged the civil servant with fraud. Investigators discovered that she had converted over $74,000 worth of voice phishing fraud funds into Bitcoin and subsequently sent the coins to an individual associated with the voice phishing organization. It is alleged that the accused received a fee in exchange for her illicit activities.
According to reports, the woman claimed she was deceived by an individual who promised her legitimate means of making money. Despite her claim of being a victim, police are continuing their investigation to gather evidence and identify potential additional victims. Authorities have also searched addresses linked to the civil servant and are examining additional data.
This case highlights the rise in cryptocurrency-related crimes in recent years, particularly in the form of voice phishing scams. Attackers often impersonate civil servants, tax service workers, or bank employees to deceive victims into transferring funds. They exploit fear or urgency, claiming that the victims’ accounts are at risk or that they are under investigation for tax offenses. These criminals manipulate victims into making transfers to purportedly resolve the issues.
The South Korean government previously witnessed a high-profile case in June 2023, when a government worker fled to the Philippines after embezzling approximately $3.5 million from the National Health Insurance Corporation (NHIC). The perpetrator converted the stolen funds into cryptocurrency, hoping to enjoy a luxurious lifestyle at a resort in the Philippines. However, local authorities apprehended and repatriated the individual to face charges.
Law enforcement agencies are working diligently to combat the growing trend of crypto crimes in South Korea. It serves as a reminder for individuals to exercise caution and vigilance when engaging in cryptocurrency transactions or dealing with individuals seeking their financial information.