- Authorities arrested ten individuals for operating fraudulent lottery-prediction sites in South Korea.
- The scheme led to losses totaling 1.2 billion Korean won for 27 victims over three years.
- Fake prediction tools and fabricated lottery wins were used to convince investors of the scheme’s legitimacy.
Key Moments
Law enforcement agencies in South Korea apprehended ten suspects who they believe ran an elaborate lottery-prediction scam. Moreover, the suspects allegedly defrauded 27 people by promoting false systems that promised guaranteed lottery wins.
Details of the Scam
The group reportedly managed to steal 1.2 billion Korean won (equivalent to US$814K) from their victims over a three-year period by operating four bogus lottery-prediction websites. These sites claimed to sell guaranteed jackpot numbers for a fee. They justified the charges with dubious stories about producing “special balls” and lobbying tied to the Donghaeng Lottery. Moreover, investigators said most victims were in their 40s to 60s, losing anywhere from tens to hundreds of millions of Korean won.
Investigation and Legal Action
The Busan Seo-bu Police confirmed that three suspects, including the individual believed to be the ringleader—identified as “A,” a man in his 30s—have been formally charged with fraud under the Special Act on the Punishment of Lotteries and remain in custody. Additionally, prosecutors plan to charge all ten suspects under the Specific Economic Crimes Aggravated Punishment Act.
Fraudulent Tactics and Public Warning
To persuade individuals to participate, the scammers promoted a so-called “lottery number prediction engine,” asserting that it used scientific and mathematical analysis to pick winning combinations. In reality, the engine generated random numbers, and the entire system was fictitious. The group would even manipulate outcomes, posting fake predictions after draws took place to create the illusion of success, and sometimes presented testimonies of supposed winners or promised refunds that were never honored.
The growing frequency of such schemes in South Korea is highlighted by a case in April, when an operator of another fraudulent lottery site was sentenced to 12 years in prison after defrauding victims out of more than 40 billion won (US$28 million), utilizing a workforce of 52 employees to maintain the elaborate deception.
Official Statement
“Numbers that scammers arbitrarily generate and send as ‘first-prize lottery numbers’ have an extremely low chance of winning, the spokesperson said. People should not fall for the sweet temptation of guaranteed wins,” a Busan Seo-bu Police spokesperson warned.
| Number of Victims | Total Loss (KRW) | Years Operated | Persons Arrested |
|---|---|---|---|
| 27 | 1,200,000,000 | 3 | 10 |
- Author
Daniel Williams
