South Korea Grapples with Crypto Scam Tsunami as Voice Phishing Skyrockets

A sharp increase in crypto voice phishing scams in South Korea has raised alarms, with the first seven months of 2025 recording 420 reported cases—over six times the 64 cases recorded in the same period of 2024 [1]. These scams involve criminals impersonating government officials or financial institutions to pressure victims into transferring their digital assets. The tactics often include false accusations of illegal activity, fake investment opportunities promising high returns, or identity theft through fake support calls [1].

The rapid rise in these scams underscores a shift in criminal behavior toward exploiting the growing popularity of cryptocurrencies [1]. Unlike traditional cash-based fraud, crypto transactions are often irreversible and harder to trace, making them attractive to cybercriminals. The surge also highlights the vulnerability of individuals who may lack the technical understanding or awareness to detect these sophisticated scams [1]. The National Police Agency has noted that these incidents not only result in substantial financial losses but also erode public trust in the cryptocurrency ecosystem [1].

Scammers typically operate by creating a sense of urgency or fear, pressuring victims into acting quickly without verifying the legitimacy of the call [1]. Common tactics include urging victims to transfer funds to secure their accounts or participate in fake investment schemes. The victims are often lured by promises of high returns, making it difficult to discern between genuine opportunities and fraudulent offers [1]. In some cases, scammers have even targeted users through social engineering, as demonstrated by a recent case in which a victim lost $91 million through a social engineering scam involving impersonation of a crypto exchange and wallet support firm [3].

To mitigate the risk of falling victim to such scams, experts recommend a series of safeguards. These include verifying the identity of any unsolicited caller by contacting the institution directly through official channels, never sharing private keys or sensitive information over the phone, and enabling two-factor authentication (2FA) on crypto accounts and exchanges [1]. Additionally, users are advised to remain skeptical of any calls that demand immediate action or threaten consequences for non-compliance [1]. Vigilance and education are key, as many victims admit they were unaware of the scam until it was too late [1].

The rise in crypto voice phishing scams has broader implications for the cryptocurrency industry and its regulation. Governments and law enforcement agencies are under increasing pressure to adapt to the evolving nature of cybercrime. South Korea’s National Police Agency is monitoring these trends closely, while global regulators are working on stricter measures and international cooperation to combat these threats [1]. Meanwhile, industry players are also being called upon to improve security protocols and educate users on the risks associated with crypto transactions [1].

The issue is not limited to voice phishing. In 2025, the first half of the year saw over $3.1 billion lost to various crypto scams and hacks, with social engineering and malware attacks being particularly prevalent [2]. Scammers are increasingly leveraging AI and deepfake technologies to create more convincing impersonations, while others exploit software vulnerabilities to gain unauthorized access to user accounts [2]. These attacks highlight the importance of adopting hardware wallets and multi-signature accounts, which offer added security for digital assets [2].

As the crypto landscape continues to evolve, so too must the strategies to combat fraud. Users are encouraged to stay informed about the latest scam tactics and to exercise caution when engaging in any financial activity online. By adopting robust security practices and remaining vigilant, individuals can better protect themselves against the growing threat of crypto voice phishing and other forms of digital fraud [1].

Source:

[1] Crypto Voice Phishing Scams: Alarming 6.6-Fold Surge In ... (https://bitcoinworld.co.in/crypto-voice-phishing-scams-surge/)

[2] The State of Crypto Scams in 2025 (https://www.ledger.com/academy/topics/security/the-state-of-crypto-scams-in-2025)

[3] Binance CEO Sounds Alarm on New Crypto Scam Targeting ... (https://finance.yahoo.com/news/binance-ceo-sounds-alarm-crypto-133013604.html)