SEOUL, February 14 (AJP) - A sharp rise in online shopping fraud linked to overseas direct purchases has been reported by South Korea’s consumer watchdog, with a majority of cases originating from social media advertisements.
The Korea Consumer Agency said Friday it found that 82.3 percent of fraud victims accessed fraudulent shopping sites through social media content or targeted advertisements.
Instagram was the most common platform associated with these scams, accounting for 41.8 percent of cases, followed by YouTube at 25.3 percent. Together, the two platforms represented 67.1 percent of all reported incidents.
The agency analyzed 2,064 fraud-related consultations received between 2021 and 2023, revealing a dramatic surge in cases — from 251 in 2021 to 1,372 in 2023.
Brand impersonation was the most prevalent form of fraud, comprising 47.1 percent of cases. Scammers posed as well-known fashion brands, collected payments, and then ceased all communication without delivering the promised goods. Complaints about receiving poor-quality products followed closely at 46.5 percent.
In one instance, a consumer purchased what appeared to be a luxury brand item for $82.95 via an Instagram advertisement but never received the product.
A separate survey of 1,000 Instagram and YouTube users conducted by the agency highlighted significant gaps in consumer awareness. More than 42 percent of respondents were unaware of self-regulatory measures in place on these platforms, and nearly 60 percent did not know how to report illegal content.
In response to the surge in scams, the agency is collaborating with the Korea Communications Standards Commission to block access to fraudulent shopping sites.
It has also urged Meta, Instagram’s parent company, and Google, which owns YouTube, to strengthen measures against deceptive advertisements and illicit content.
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