South Korea is currently dealing with an alarming cybercrime case, where a criminal group utilized a hacked mobile app to steal personal data and blackmail unsuspecting victims at massage parlors. Law enforcement recently revealed that a total of 15 individuals were engaged in this illegal operation, comprising the chief orchestrators, accomplices, and money launderers.
The gang had a clever trick up their sleeves—they deceived massage parlor owners into downloading what appeared to be a standard business management application. They claimed it would assist in managing customer appointments, but in reality, it functioned as a hacking device intended to pilfer sensitive information from the parlor’s clientele.
This malicious software granted criminals access to a treasure trove of data: victims’ names, phone numbers, text messages, and call logs. Armed with this stolen data, they targeted male clients, alleging that they had clandestinely filmed them during their visits to the parlors.
Threatening messages were dispatched to the victims, filled with panic-inducing claims like, “We’ve installed cameras in the massage rooms and hold footage of you. If you refuse to pay, we’ll share it with your family and friends.” Thankfully, these statements were mere fabrications; there were no hidden cameras and no actual videos. Nonetheless, many victims felt cornered and consequently sent money to safeguard their reputations.
Targeting Victims and Extracting Payments
The investigation identified 62 victims, among whom 36 succumbed to the threats and ended up transferring funds to the criminals. The payments varied from 1.5 million to 47 million Korean won, dictated by each person’s level of fear and the intensity of pressure they experienced.
Even though 24 victims stood their ground and refused to pay, the gang attempted to extort nearly 200 million won from them. In total, the scam garnered hundreds of millions of won, translating to hundreds of thousands of dollars.
Police reports indicated that the gang members squandered the bulk of the stolen money on gambling, entertainment, and daily living expenses, ignoring any legitimate investments.
The mastermind behind this criminal network was the one who acquired the hacking app from an online platform. Collaborating with his trusted associates, they rented office space, procured laptops and prepaid phones, and assigned roles efficiently. Some were in charge of the stolen information, others dispatched menacing messages, while a separate group handled the collection and withdrawal of extorted funds.
Police Investigation and Arrests
Authorities became aware of the situation during a probe into another cybercrime when they located the dubious app on a massage parlor owner’s phone. Tracing the digital breadcrumbs led them straight to the full extent of the gang’s illicit activities.
The Gyeonggi Nambu Provincial Police Agency’s cyber investigation unit spearheaded the inquiries. Their months of surveillance resulted in 15 arrests related to this case. Of those apprehended, five were key players, while the others were auxiliary money launderers helping to hide the criminal income.
The first wave of arrests took place in August 2023, nabbing two suspects using the application. As time passed, additional operatives were captured across various locations in the country. The leading suspect was eventually taken into custody for a different offense, while two more were apprehended earlier in Gyeongnam and Busan.
In a remarkable note, one suspect continued to execute similar scams even while on the run, managing to extort an additional 36 million won prior to his apprehension.
Authorities highlighted that the criminals evaded capture for nearly two years before this extensive operation was uncovered. A police official issued a warning for people to exercise extreme caution with installing apps from unofficial platforms and unfamiliar websites, as these could harbor malware or spyware meant to compromise personal information.
