3 Financial Scam Tactics and How to Respond
With upfront payments for side jobs, money-transfer jobs, and principal-guaranteed investments, first check how they ask you for money. This explains the limits of small rewards and business registration certificates, how to respond to malicious apps, and the difference between payment suspension and recovery of lost funds.
The small reward you receive at first does not prove that a later deposit or investment is safe.
A job that asks you to receive other people's money in your personal account and pass it on may be used for criminal activity.
An agreement guaranteeing the principal and videos of successful investments alone cannot confirm the ability to repay.
If you suspect that a malicious app has been installed, report it using another phone or visit a police station.
Payment suspension and recovery of lost funds are separate procedures, and they do not apply to all scams in the same way.
Financial fraud schemes to watch out for include upfront payments for side jobs, money transfer jobs, and principal-guaranteed investments. You cannot determine whether something is safe based only on the first payment you receive. If you have already sent money, contact 112 and the relevant financial company immediately.
The statistics on illegal fund-raising are based on 2025 data included in the Financial Supervisory Service's March 2026 announcement.
Comparison of 3 Financial Fraud Schemes
These three types differ in how they get you to send money or transfer it on someone else's behalf. Check what you are actually being asked to do rather than the title of the advertisement. The categories below provide criteria for reviewing an offer.
Type | Initial offer | Requests to check | Main risk
Side-job scam | Watching videos, writing reviews, team mission rewards | Deposits, account top-ups, additional payments | Increasing deposit amounts by using rewards as bait
Money transfer job | Easy errands, high pay | Receiving money in a personal account and sending it onward, collecting cash | Involvement in transferring criminal proceeds
Principal-guaranteed investment | New technology business, stable high returns | Sending investment funds, paying additional costs before withdrawal | Refusal to return the investment or disappearance
Upfront Payment Requests in Side-Job Scams
Side-job scams demand money before you start working or receive compensation. At first, they may give you simple tasks and actually pay a small amount. They then promise larger rewards and collect deposits or account top-ups.
Team missions are presented as tasks performed by several people together. They may pressure you to make additional deposits, claiming they are needed to settle payments for the entire team. Sending more money to recover what you have already sent will increase your losses.
The government's February 2026 guidance also points out the tactic of inducing repeated deposits. This method promises high returns for completing missions. More information is available in the fraud and smishing prevention guidance.
Side-job advertisements that lead to the sale of courses also require scrutiny of the payment terms. They may exaggerate earnings and then demand a commitment fee or training fee. However, a course cannot be deemed fraudulent simply because it charges a fee.
Before making a payment, check the following in order.
· Get the actual work and payment terms in writing.
· Check why an upfront payment is required and what the refund terms are.
· See whether the income claims in the advertisement have objective evidence.
· Stop sending money if you are asked to make an additional deposit to withdraw funds.
High-Paying Jobs and Requests to Transfer Money
Jobs that involve receiving and transferring someone else's money may be used to move criminal proceeds. This means you could become involved in money laundering intended to conceal the source of funds. Check the actual instructions rather than the job title in the recruitment advertisement.
Be particularly wary of instructions to receive customer funds in a personal account. The same applies to work that involves receiving cash from and delivering it to strangers. Verify the company's address and official contact information separately from the advertisement.
The Korean National Police Agency provides the following guidance on jobs involving money transfers or cash delivery.
If you engage in any of the following acts, you may be punished as an accomplice
The source is the Korean National Police Agency's Voice Phishing: Just Remember This!. The guidance also warns against lending or selling bankbooks, cards, and similar items. A referral from an acquaintance alone does not establish that the work is lawful.
Criminal liability is determined by considering how the person became involved and whether they were aware of the crime. Simply saying that it was a part-time job does not eliminate liability. Conversely, it is also inaccurate to conclude that someone will necessarily be punished even if they did not know it was a crime. The relevant factors are explained in public court research materials.
Request | Distinction to make when assessing it | Recommended response
Bank account number for salary deposits | Information that may also be needed for legitimate recruitment | Verify the company and the recruitment first
Receiving customer funds in a personal account | Money transfer work that differs from receiving a salary | Stop and verify any instructions to receive and resend funds
Photo of an ID | The purpose of use and the party collecting it must be checked | Do not send it to an unidentified person in a chat
OTP, password, or verification code | Information used to authorize financial transactions | Do not give it to a recruiter
Collecting cash and delivering it to a stranger | May be used to transfer stolen funds | Stop the work and consult the police
Principal-Guaranteed Investments and Illegal Fund-Raising
For investment offers that promise both principal protection and high returns, first check whether the entity is authorized to raise funds. Collecting funds while promising to return the principal without the required licenses or approvals may constitute illegal fund-raising. Promises in a contract alone do not prove the actual ability to repay.
Hydrogen energy, drones, and art tech are also used as themes for investment scams. Videos featuring actors giving investment success stories may be used to build trust. The existence of a website or information session alone does not verify that the business is genuine.
In 2025, the Financial Supervisory Service referred 26 companies for investigation into illegal fund-raising. Cases disguised as new technologies or new businesses numbered 14, accounting for 53.8%. This must be distinguished from their share of all investment fraud. The figures are available in the report on the Financial Supervisory Service's March 9, 2026 announcement.
Check the following before deciding whether to invest.
· Check information on regulated financial companies through the Financial Supervisory Service's FINE.
· Check the scope of licenses and approvals required for the business the company claims to conduct.
· Verify the offerer's affiliation through the registered company's official contact information.
· Get the profit-generating structure and the terms for bearing losses in writing.
· Stop sending money if you are asked to send taxes or fees separately before making a withdrawal.
Business registration must be distinguished from licenses and approvals for financial services. Also consider the possibility that the name of a registered company has been misused. If the business is unfamiliar, do not send money while leaving anything unexplained.
Fraud Conducted by Phone and Text Message
Voice phishing and smishing approach victims through different channels to gain their trust. Voice phishing is a method of deceiving people by phone or other means to obtain money or financial information. Smishing uses text messages to induce people to access fake websites or install malicious apps.
Approach | Subsequent request | How to verify
Impersonating prosecutors, police, or the Financial Supervisory Service | Sending money or delivering cash under the pretext of assisting an investigation | End the call and contact the agency directly
Offering a low-interest loan | Upfront payment of an existing loan balance or deposit | Check through the official channel of the financial company you use
Contact about card delivery or court-registered mail | Calling a fake customer service center or installing an app | Use an official number you found yourself rather than the number provided
Text about a parcel, wedding invitation, or fine | Opening a link or entering personal information | Check through the relevant agency's official app or website
Impersonating family or acquaintances | Urgent money transfer or disclosure of a verification code | Verify separately using the contact information you normally use
Instructions not to tell your family are intended to prevent outside verification. Scammers may also keep you on the phone to reduce the time available for judgment. Do not follow instructions to hide the reason for a transfer from bank employees.
It is difficult to determine someone's identity based only on their voice or the phone number displayed on the screen. Guidance also addresses schemes that use AI to manipulate a family member's voice. The source is the Financial Services Commission and Financial Supervisory Service's February 2026 prevention guidelines.
Common Mistakes When Assessing Fraud
You must distinguish between facts you have actually verified and what those facts prove. A deposit record shows only that money was received. The following table summarizes the limitations of each type of evidence as criteria for assessment.
Evidence that is easy to trust | What that evidence alone cannot show | What else to check
A small initial payment | Whether the next deposit will be returned | Why an additional deposit is required
Business registration certificate | Financial licenses and whether investment funds are protected | Actual authorization to conduct the business
Principal guarantee agreement | The company's ability to repay | How the money is held, managed, and returned
Investment success story video | The participant's actual investment performance | Independently verifiable evidence
Settlement proof in a group chat | Whether the participants and proof shown on screen are genuine | A verification channel unrelated to the operator
Caller ID that appears to be an official number | The caller's actual identity | Direct contact using a safe device
Receiving money at first does not make the next transaction safe. Money already spent cannot justify sending more. Shift your assessment from past rewards to the current request.
Checking the Source of Money Deposited into Your Account
Even when receiving money, you must check its source and any instructions that follow. Receiving a salary and transferring someone else's funds are different acts. This distinction is particularly important if you are asked to send the money to another account immediately after receiving it.
A deposit you believed was compensation for a side job may also come with a request to send it onward. The other party may claim that the money was sent by mistake and designate a separate account. In such cases, do not transfer the money solely on the instructions of the person you are communicating with.
· Keep the deposit record and the other party's transfer instructions.
· Explain the situation to the official customer service center of the bank that manages the account.
· If the money must be returned, follow the procedure verified by the bank.
· If you suspect criminal proceeds, report the facts to the police.
This does not mean that the deposit itself should be deemed a crime. It is a response intended to stop the transfer when the source of the money is unclear. Keeping the job posting and work instructions will also help explain how the situation arose.
Response Steps by Type of Incident
If you have already sent money, do not delay reporting the incident until you have finished organizing the evidence. Call 112 for an emergency report. Also notify the relevant financial company about the transfer and request any available measures.
· Stop sending additional money. Do not send withdrawal release fees or loss recovery fees.
· Secure a safe means of communication. If you suspect a malicious app, use another phone or visit a police station.
· Report the loss to 112. Immediately ask the financial company whether payment suspension is possible.
· Keep transaction and communication records. These include account numbers, transfer dates and times, amounts, chats, and advertisement URLs.
· Receive follow-up assistance appropriate to the exposed information. Explain separately whether financial information and identification documents were exposed.
Current situation | First action | What to check next
You only received suspicious contact | Stop sending money, installing software, or providing information | Verify the facts through the agency's official contact information
You sent money | Contact 112 and the relevant financial company | Check whether payment suspension and victim compensation procedures apply
You paid by card | Notify the card issuer that the payment involved fraud | Check whether cancellation or dispute resolution is possible
You sent an ID or financial information | Notify the bank of the exposure | Register the personal information exposure and protect authentication methods
You installed a malicious app | Disconnect communications and report it using a safe device | Preserve evidence and follow app removal or factory reset procedures
You transferred money on someone else's behalf | Stop any further work | Submit details of the work and supporting materials to the police
Malicious apps can intercept even calls made to official numbers. Rechecking only on the phone suspected of having the app is not enough. The Korean National Police Agency's malicious app response guidance explains how to disconnect communications and take follow-up action.
Prepare transfer records, messenger conversations, and similar materials when reporting cybercrime. You may be asked to visit a police station even after submitting an online report. Specific submission instructions are available through the Korean National Police Agency ECRM.
Difference Between Payment Suspension and Refund of Losses
Payment suspension does not guarantee the return of stolen funds. It is a procedure that prevents money from being withdrawn from an account. The actual refund depends on the applicable requirements, the remaining amount of stolen funds, and other factors.
Category | Purpose | What to check
Payment suspension | Restricting withdrawals and transfers from an account used for fraud | Whether the case and account are covered
Refund of losses | Returning stolen funds under statutory procedures | Remaining funds and the recognized scope of the loss
Police report | Investigation of criminal conduct | A report alone does not guarantee a refund
Card payment dispute | Reviewing the possibility of cancellation or compensation | Handled separately from payment suspension for an account
There are limits on applying the law to fraud disguised as transactions for goods or services. However, applicability also cannot be determined solely because the scheme is called a team mission. Explain to the financial company and the police how you sent the money and how the transaction was structured.
Article 2 of the Telecommunications Fraud Damage Refund Act on the Korean Law Information Center defines the scope. A related Supreme Court ruling also considers the substance of the transaction. Call 112 for emergency reports and the Financial Supervisory Service at 1332 for financial consultations.
