Korean Financial Authority Installs Report Center to Counter Crypto Scams
The Korean Financial Supervisory Service (FSS) announced today that it has installed a dedicated report center aimed at combating investment fraud related to virtual assets. From June 1 through to the end of this year, the report center will run a reporting campaign.
Surge in crypto fraud cases
While the National Assembly is working on the legislation of the Virtual Asset User Protection Bill, there has been a surge in fraudulent activities exploiting regulatory loopholes. According to the FSS, the number of reported cases of crypto fraudulent activities in Korea surged by 67.2% last year, reaching 199, compared to the previous year’s 119.
In a proactive response to this rising concern, the FSS has set up a report center, designed to staunch the escalating tide of fraud.
Coordinated efforts against financial fraud
Under the guidance of the Anti-Financial Fraud Office, the report center will operate collaboratively with other relevant departments, such as the Consumer Finance Department and the Asset Management Examination Department. Reports can be filed either via landline or through the FSS website.
Swift actions on detected fraud
As part of its policy, the FSS will swiftly inform investigative agencies, like the prosecutors’ office, if an issue raised via the report center is deemed severe or contains specific facts that necessitate further scrutiny.
The financial watchdog emphasized its commitment to issuing financial consumer warnings whenever potential fraud is detected and poses a risk to investors. This strategy is designed to safeguard investors and impede the spread of damages.
