Financial crimes in cyberspace are becoming more sophisticated. These financial crimes have evolved into diverse types including voice phishing, memory hacking, pharming, and smishing.
The National Police Agency revealed on November 26 that damages claimed this year in relation to new types of cyber financial crimes, such as smishing, pharming, and memory hacking, amounted to a total of 22.9 billion won (US$21.5 million), which does not include voice phishing. The number skyrocketed over 40 times, from the 570 million won (US$537,000) last year.
With citizens indiscriminately exposed to cyber fraud, Internet gambling, in particular, is rampant in cyberspace. Bogus text messages via mobile phones trick people into clicking on a link, making even professionals such as financial experts, lawyers, and professors into victims.
Experts warn that cyber financial crimes could cause massive damage to the national economy by forming another axis of underground economy. Money from cyber financial crime often flows overseas. Some violent offenders, including organized gangs, were also found to have stepped into cybercrime.