The Busan District Prosecutors’ Office traced the whereabouts of 7억5000만원 that had been taken from a voice-phishing victim.
Approximately 2억원 deposited into an account was frozen and returned to the victim, but the 5억5000만원 handed over by check is still undergoing recovery procedures.
Even for the same type of loss, the recovery process differed depending on how the money was delivered to the perpetrators.
3-Line Summary
1. The 2억원 in voice-phishing losses was returned.
2. The 5억5000만원 in checks is in the appeal process.
3. Whether the money was deposited into an account determined the speed of recovery.
The 2억원 Remaining in the Account Was Returned After Approximately 4 Months
On September 28, the Busan District Prosecutors’ Office announced that, while investigating money-laundering crimes in a voice-phishing case currently on trial, it had traced 7억5000만원 belonging to the victim. The losses included, among other things, the husband’s death insurance payout.
The investigation found that approximately 2억원 had been deposited into the perpetrators’ account, and prosecutors froze the account. They then requested that financial institutions suspend payment and initiate the procedures for extinguishing the claim, and the victim received the 2억원 back approximately 4 months after the procedures began.
The Special Act on the Prevention of Telecommunications-Based Financial Fraud and Refund of Fraud Losses applied to this process. According to reports, victims of voice phishing can recover their losses before a trial becomes final if they go through the procedures under this law. This was a case in which tracing criminal proceeds and freezing the money remaining in an account led to its actual return.
Why Was the 5억5000만원 in Checks Not Returned Immediately?
The remaining 5억5000만원 was money that the victim issued in checks and handed to the perpetrators. The checks were registered as accident checks and had not yet been paid, but that does not mean they automatically become invalid.
Under the current Civil Procedure Act, a judgment of nullification declaring a check invalid is permitted in cases such as loss or theft. The legal issue reported was that no separate procedure exists for checks that a voice-phishing victim personally handed to the perpetrators. The victim’s application for a public summons was rejected, and an appeal is currently underway.
A bill amending the Telecommunications Fraud Damage Refund Act has been introduced in the 22nd National Assembly and is under review. It would exceptionally allow a public summons and a judgment of nullification in such cases as well. This is not yet a changed system, but a proposal at the National Assembly review stage.
If a Malicious App Has Been Installed, 112 May Not Be a Safe Way to Verify the Situation
The Northern Gyeonggi Provincial Police Agency announced on September 25 that it had prevented approximately 9억원 in losses involving a man in his 70s. After accessing an internet address provided by a criminal impersonating a community service center official, the man had 3 malicious apps installed that were used for remote control and caller-ID and number manipulation.
The criminal organization told him to call 112 if he became suspicious, but the investigation found that, on the phone with the malicious apps installed, even calls to 112 were configured to connect to the organization. After having the man verify his identity at a police substation using a landline, police deleted the malicious apps and also proceeded with an application to suspend payments from the account.
The standard for judgment presented by police is clear. If voice phishing is suspected and a malicious app may have been installed, do not verify the situation using that phone; contact the police or a financial institution directly using another phone. Money remaining in an account can be the starting point for recovery if it is frozen quickly, but when the method of delivery differs, as with checks, the return process can also take longer.
References
Tags #VoicePhishing #VoicePhishingLosses #LossRefund #AccountFreeze #PaymentSuspension #TelecommunicationsFraudDamageRefundAct #CheckLosses #JudgmentOfNullification #MaliciousApp #RemoteControlApp #TelephoneFinancialFraud #BusanDistrictProsecutorsOffice #NorthernGyeonggiProvincialPoliceAgency