South Korean Investment Fraud Ring Busted, AI Technology Aids in Arresting Suspects
TechFlow news, August 12, according to Yonhap News Agency, the Daejeon Yuseong Police Station recently solved an investment guidance (리딩) fraud case, arresting 8 suspects, 6 of whom were caught, including Chinese national domestic fund general manager suspect A. The gang used SNS and YouTube ads with "up to 100% return rate" as bait, inducing victims to install fake stock trading apps, and displayed forged profit screenshots in group chats, subsequently requesting victims to contribute in cash or gold bars on the grounds of "avoiding bank tracking", defrauding 5 victims of approximately 1.541 billion won in total.
When receiving payments, the suspects wore forged employee IDs of well-known financial institutions such as Bank of America (BoA) to gain victims' trust. Notably, during the investigation, the police used AI technology to create highly realistic fake gold bar photos and proof of investment, successfully luring and catching the fund general manager who was preparing to flee, and recovered approximately 258 million won in illicit funds.
