FSS Issues Consumer Alert on Fake Exchange Deposit Scams

Recently, it has been revealed that scams encouraging investors to deposit money into virtual asset (cryptocurrency) exchanges by luring them with offers of free 'rapidly rising stocks' on social media (SNS) are spreading widely.

On the 1st, the Financial Supervisory Service (FSS) issued a 'caution' level consumer alert, urging vigilance against financial scams that direct people to fake virtual asset exchanges.

Fraudsters use bait such as 'free rapidly rising stocks' on SNS to attract investors, then have them sign up on fake cryptocurrency exchange websites and induce them to invest.

Specifically, they provide bogus financial seminars for an extended period and distribute fake coins to deceive consumers. Subsequently, they lead victims to invest in fake virtual asset exchanges and, under the pretense of mandatory liquidation, demand large deposits from the consumers and steal their money.

The FSS stated, "Consumers should be suspicious if approached with offers of 'financial seminars,' 'attendance bonuses,' or 'rapidly rising stocks' for free," and cautioned, "Do not conduct any transactions with companies that try to guide you to join cryptocurrency exchanges through Telegram or similar channels."

They further emphasized, "In particular, you must never deposit money with unverified companies or personal accounts," adding, "Since virtual asset businesses that are not registered with the Financial Intelligence Unit (FIU) may be fake exchanges intended for scams, always be sure to check their registration status."