Using small loans as bait... Gang caught for opening and selling 4,000 disposable USIM cards A gang that opened and sold 4,000 disposable USIM cards, using small loans as bait, has been caught. On the 8th, the Metropolitan Police Agency's Cyber Investigation Division announced that they had arrested a total of 18 people, including a 30-year-old man, A, who was the ringleader, on charges of violating the Telecommunications Business Act. According to the police, A and his accomplices opened disposable USIM cards in the names of 4,000 people, mostly those in their 20s and 30s, from July 2020 to last month, and sold them for 10,000 to 50,000 won per card. The police investigated 40 cases in which the victims' personal information was used to open USIM cards, and estimated that the total damage was around 200 million won. The gang used small loans as bait to obtain the victims' personal information. They would advertise "If you want a loan, send your name, resident registration number, and phone number" on social media and then use the information to open disposable USIM cards. The cards were then sold to people who would use them for malicious activities such as phone phishing and spamming. The police are investigating whether there are any additional victims or masterminds behind the gang. The police also warned that "if you receive a loan with an interest rate of 20% or higher, or if you are asked to send personal information via text message or social media, you should be cautious as it may be a scam."

A group of nine individuals involved in a money-laundering scheme have been arrested for selling 'Pork Remains' (referring to the practice of opening prepaid mobile phones) to a voice phishing organization. These individuals offered small loans under the guise of convenience, charging exorbitant interest rates of up to 600%. The Seoul Gangbuk District Police Station uncovered the operation between October 2024 and April 2025, charging nine individuals under the Electronic Communications Business Act and Illicit Business Act.

Out of the nine, six were detained and transferred to the Seoul North District Prosecutors' Office, while the remaining three are under investigation. The remaining suspects are currently being tracked down through an international warrant.

The suspects lured victims with urgent payment requests, offering to lend them money in exchange for the prepaid mobile phone. For each prepaid phone, they charged a loan amount of 100,000 KRW, which was to be repaid a month later with 150,000 KRW. Converting this to an annual interest rate yields roughly 608%, resulting in substantial financial exploitation.

Over 1,000 victims fell prey to this scheme, with a total of 4,185 prepaid phones being opened under the pretense of loan repayment. These phones were later discovered to be used for fraudulent activities like rating fraud. During their operations, the suspects used various tools such as the 'Dopan' phone, Telegram messenger, and remote phishing (PC) to evade detection by law enforcement.

The proceeds from selling the prepaid phones were either stored in Tether stablecoins or laundered in cash. Police conducted a search of the suspects' offices in April and apprehended the individuals between April and July. The assets seized by the police amount to approximately 8 billion KRW, which are currently under seizure for further investigation. Police advise caution, as individuals who fall for urgent payment requests may inadvertently engage in criminal activities.