- Crypto scammers in South Korea are growingly targeting residents in their fifties and sixties
- There was a surge of 41.6% in the figure of cases of alleged crypto-themed fraud instances
- Untrained investors with supplementary cash in stock are low-hanging fruit for scammers right now
Crypto scammers in South Korea are growingly targeting residents in their fifties and sixties, found a new report. This is a substantial rise considering that the crypto-focused multi-level marketing (MLM) proposals are currently running in full action.
The sudden rise in South Korea’s crypto scams
As per the report of EDaily, the administrative network Financial Supervisory Service (FSS) states there was a surge of 41.6% in the figure of cases of alleged crypto-themed fraud instances outlined in the country. The sudden rise is contextual to the period ranging from January to October last year from a similar interval in 2019.
The media portal highlighted various anonymous individuals referring to how they had handed over vast chunks of their pensions and retirement savings to potential people they believed they could trust. While on the other hand, some were making investments in specific cases on the suggestion of friends they had had since childhood.
One man reported that he had suffered a loss of 90% from his funds after signing up with an old school friend for investment advice. Another woman, probably in her 60s, explained that she lost around USD 177,000 in an investment plan, banking upon bonds to earn money.
The elderly: an easy target for scammers
Janet Cho, a South Korean IT journalist, stated that such untrained investors with additional cash in stock are low-hanging fruit for scammers right now. And tech-themed MLM scams tend to appear as little more trustworthy to older folks, who are likely to have cash set aside for devaluing in bank accounts, especially if they arrive as a recommendation through a friend. However, that loophole is that friend plans to reach diamond stature or whatnot through their network.
EDaily emphasized a legal specialist’s opinion as stating that a specific favourite target for MLM scammers pretending to speak on behalf of bona fide crypto institutions and investments were middle-aged women grappling with the issue of investing in the stock market with accurate information and measures.
The emerging crypto moms are currently flocking towards bitcoin (BTC) in South Korea. However, it looks like fraudsters are planning to take undue advantage of this trend, with outlandish assurances of three-tenfold rewards on their respective investments.
The FSS highlighted that while recently founded legislation needed crypto traders to stick to the anti-money laundering protocols, it still does not supervise or administer for user protection or [MLM] scam instances. Thus, it warned citizens to be on their safeguards against such investment offers that appear too good to be accurate and verify every information before venturing into this space.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.