Fraud Schemes Share Common Blueprint Despite Different Facades

Every time I examine the situation, I feel an unsettling sense of déjà vu. From jeonse fraud to advertising scams targeting small business owners, and even businesses built on mountains of debt using tenants' deposits, the variety of criminal activities is vast. However, the names of the perpetrators and the amounts lost by victims may differ, but the underlying blueprint remains the same.

The first step for fraudsters is to 'borrow a name.' A shell company with a capital of 10 million won attracts tenants by using the name of a legal entity overseen by the Ministry of Land, Infrastructure and Transport, and then uses the 10 billion won in collected deposits as collateral for larger debts before declaring bankruptcy. In advertising scams, the first words on the phone often claim, "We are an official partner of Naver," while false listings hide behind the names of real estate applications to lure people to the scene. By leveraging the names of reputable entities, they easily dismantle the public's wariness.

Next comes the selection of targets. The list of victims from the jeonse fraud I investigated included several foreign tenants, while the targets of advertising scams were often novice entrepreneurs who had just registered their businesses. A young professional in their twenties was misled by false listings on a real estate app and ended up moving from one jjimjilbang to another for a week. All of these individuals were people who lacked the power to assert their rights. They were either unfamiliar with legal procedures, unable to afford immediate litigation, or resigned to the belief that reporting would change nothing. The fraudsters' calculation that victims would find it difficult to report or file complaints was chillingly accurate.

The final step is straightforward: disappearance and disaster. Like a Ponzi scheme, they use the money from new victims to fill previous gaps or continue accumulating debt until they reach their limit, at which point they close up shop and vanish. Once a shell company with a capital of 10 million won shuts down, even if victims want to pursue forced execution, there are no remaining assets. Even if they win a civil lawsuit and hold a favorable judgment, the outcome for victims is always the same: "There is no hope for recovery as the other party lacks the ability to repay," a disheartening reality.

The problem is that the judicial penalties that should operate at the end of this mechanism are calculated as 'profitable business' for the fraudsters. Even if they receive a prison sentence, the hidden money remains intact. If they can obtain money they would never be able to touch in a lifetime by spending a few years in prison, serving time becomes merely a cost for capital acquisition, not a punishment.

In a situation where penalties have lost their deterrent effect, the next steps for these individuals are predictable: they simply change their signs. A brokerage office that has accumulated complaints due to false listings will apply for a provisional injunction when faced with a business suspension order, transfer existing staff to a new business entity, change the name, and immediately continue operations at the same location. Advertising agencies that impersonate portal sites also change their names and resume operations after closing down when the shadow of law enforcement or administrative authorities looms. In the absence of laws and systems to prevent this, the fraudulent activities that merely swap out names are easily repeated.

The words of the victims I met in the field were always similar. "I believed them because they had an association mark," and "I was drawn in by the promise of zero advertising costs," followed by a shared sense of despair. No matter how much they lament, the helplessness of not being able to reclaim their stolen lives and money remains. Fraud is not merely a misfortune that befalls individuals; it is a structural crime designed to exploit the vulnerabilities of the weak by borrowing the credibility of established entities.

Even if the signs change, the blueprint of fraud does not. And as long as we cannot break this vicious cycle, the next victim is likely receiving a call somewhere at this very moment.