International Hacking Syndicate Taken Down in Seoul
In a significant crackdown, authorities in Seoul have recently taken down an international hacking syndicate accused of targeting affluent South Koreans, including famous figures like Jungkook from BTS, and high-ranking corporate leaders. This cybercrime operation is believed to be responsible for the theft of approximately $28.1 million (₩39 billion) from vulnerable individuals’ bank and cryptocurrency accounts.
Details of the Operation
The Seoul Metropolitan Police Agency’s Cyber Investigation Unit revealed on Thursday that they apprehended 16 individuals, among them two alleged Chinese leaders who were reportedly orchestrating the illicit operations from locations in China and Thailand from July 2023 until April 2024, as reported by Korea Joongang Daily.
According to Rich O., the APAC regional manager at OneKey, a manufacturer of hardware wallets, this case underlines a pressing issue: international criminal enterprises are increasingly targeting South Korean assets. He emphasized that many domestic institutions are inadequately equipped to thwart these sophisticated hacking attempts.
Method of Operation
Investigations revealed that the hackers infiltrated various websites belonging to government bodies and financial institutions, stealing personal information from their affluent targets. With this data, they established more than 100 fake phone accounts that circumvented security measures, allowing them to access victims’ financial holdings.
While data from 258 prominent individuals, comprising 28 crypto investors, 75 business leaders, 12 celebrities, and 6 athletes, was compromised, actual thefts were executed against only 26 individuals whose total account balances exceeded $39.8 billion (₩55.22 trillion). Out of these thefts, 16 victims suffered losses, with the most significant single incident involving $15.4 million (₩21.3 billion) in cryptocurrency.
Remarkably, financial institutions managed to halt an additional theft attempt of $18 million (₩25 billion) targeting another 10 victims, preventing potentially greater losses. O. pointed out that while crypto holders are often seen as prime targets, they represent just a portion of the affluent demographic that hackers are keen to exploit. He described this event as indicative of a new wave of hacking threats, as it reveals systematic attacks on governmental and financial systems aimed at profiling wealthy individuals.
Case of Jungkook
In the case of Jungkook, reports suggest that hackers attempted to siphon off $6.1 million (₩8.4 billion) from his Hybe entertainment stock holdings shortly after his enlistment in the military. Fortunately, the banking system detected the irregular transactions, allowing his management team to intervene and halt the unauthorized transfers.
Law Enforcement Response
Thanks to prompt law enforcement measures, authorities managed to freeze and recuperate $9.2 million (₩12.8 billion) for the victims. The ringleaders were captured in Bangkok with assistance from Interpol, and one of them has already been extradited to South Korea to face multiple charges involving network and economic crimes.
Oh Gyu-sik, who leads the 2nd Cyber Investigation Unit of the Seoul Metropolitan Police Agency, commented that the incident, which involved bypassing established authentication systems, is unprecedented and could have resulted in even larger crimes given the potential amounts stolen. O. further stressed the necessity for a layered defense mechanism to combat such breaches, particularly calling for stricter identity verification for telecommunications and stronger international law enforcement collaboration to address corruption linked to Chinese criminal groups.
