81 Arrests After Bitcoin Mining Scammers Accidentally Target Detective
A group of South Korean Bitcoin mining scammers appears to have scored a spectacular own goal, mistakenly targeting a police detective with a “high-yield investment crypto scam.”
Per the newspaper Hankyoreh, the suspected scammers’ gaffe began in April this year when a member of their illegal “call center” called a detective from the Gyeonggi Southern Provincial Police Agency’s Mobile Criminal Investigation Unit.
S Korean Bitcoin Mining Scammers’ Own Goal
The detective realized that the call originated from scammers, so pretended to fall for the Bitcoin (BTC)-themed “scam.” He gave the “call center” employee his bank account number and other information as requested, telling the suspected scammer that he “would invest.”
Police were then able to follow a trail of information that eventually allowed them to raid the organization’s “headquarters” in the city of Incheon. Officers arrested a total of 81 people, including a group of people who they suspect of buying leaked personal data. Police think the group also used “fake” SIM cards to propagate the “scam.”
The Criminal Mobile Unit announced on November 6 that it had detained nine people. These include the organization’s suspected “ringleader.” Police booked the “ringleader” on charges of violating the Specific Economic Crimes Punishment Act. Another seven were booked for similar charges, but were released on bail.
A further four people were detained on charges of “supplying fake SIM cards in the names of non-Koreans.” A further 27 people were indicted on similar charges but were not detained. And 33 people were arrested for violations of personal data protection laws.
The suspected ringleader, named as “K” by the police, reportedly defrauded 50 people by telling them that they would make “big profits” by pooling their money. This, the group allegedly claimed, would let the organization rent Bitcoin mining rigs to generate “guaranteed” profits.
‘Free Trial’
Police said the group tried to win their victims’ trust by initially paying them “dividends” of just over $7 during a “free trial period.” This strategy proved successful: Victims each handed over between $2,143 and $214,200. Police said the group raised over $1.6 million in total.
A police spokesperson said the group set up its “call center” in October last year, in addition to other “offices.” Officers added that the group also used “fake phones, fake [bank] accounts, and leaked personal information.” They also used a total of 1,980 “fake” SIM cards to contact potential victims.
“Please be careful of investment solicitations from people who promise profits via ‘free trials.’ Please also be mindful of people who guarantee high profits without requiring any special effort on your behalf. These are very likely to be scams.”
Gyeonggi Southern Police Agency spokesperson