South Korean Police Nabs 2 Fraudsters After Senior Citizen Loses $4.1M in Crypto Scam

Crypto crimes are on the rise across the world, especially with the market-wide boom. Elderly individuals, for one, are one of the most targeted groups, preyed on by fraudsters who convince them through different means to exchange their funds for crypto while promising substantial investment gains.

This has prompted authorities to intensify their crackdown. In the latest development, South Korean authorities have reportedly arrested two anonymous individuals in their 20s and 30s for orchestrating a similar scam that targeted a senior citizen.

Two Fraudsters Arrested For Targeting Elderly

The local report by the popular Korean daily, ‘Chosun,’ stated that the victim, who is in his 60s, lost nearly 5.5 billion South Korean won, which is valued at almost $4.1 million. The suspects, who were detained by the Haeundae Police Station in Busan, South Korea, reportedly lured the victim with promises of huge returns in investments of crypto assets from September to December 2022.

The duo assured a monthly profit of 70% on investments totaling 1 billion won and even convinced the victim to transfer 5.5 billion won across six transactions. They provided fabricated balance certificates that showed nonexistent investments.

Despite the victim’s financial contributions, none of the funds actually reached any legitimate crypto trading accounts, as per the Busan authorities. The victim, on the other hand, was also presented with counterfeit balance sheets and falsified real estate contracts to mask the deceit further.

While law enforcement managed to swiftly nab the perpetrators, details regarding the recovery of the stolen funds are not known yet.

Crypto Scams on Elderly

Fraudsters often specifically prey on seniors for multiple reasons. Seniors are often more trusting and less technologically savvy, especially when it comes to digital assets. Furthermore, certain individuals in their 60s may also not have adequate retirement savings, thereby becoming susceptible to investment schemes similar to get-rich-quick ones in an attempt to make up for lost time.

FBI’s 2022 Elder Fraud Report  revealed a surge of over 300% in financial losses attributed to investment fraud. The figure eclipsed all other forms of fraudulent activities and is primarily attributed to scams involving crypto investments. The report further disclosed that losses related to crypto surged by 350% across various crime categories monitored by the agency.