Nine detained after Cambodia-based gang defrauds 59 investors of 9.9 billion won with fake AI stock tips

10 members of Cambodia-based investment fraud ring arrested; 9 detained

Gang lured victims with promise of 600% returns on AI-recommended shares, stealing 9.9 billion won (approximately $6.5 million)

Operation carried out in coordination with pan-government transnational crime task force

A gang that ran an investment fraud scheme from Cambodia has been arrested by police. Shown here are fake success stories posted in the group's investment chat room, claiming large profits. [Seoul Metropolitan Police Agency]

By Kim Do-yoon, The Herald Business

"During the project period, we are completely safe. There is absolutely no need to worry about market conditions." So said one gang member posing as a brokerage secretary. Another, playing the role of a shill, wrote: "The project is turning great profits — I came out today for a proper meal to celebrate."

Police have arrested a fraud ring that deceived victims into handing over 9.9 billion won (approximately $6.5 million) by falsely promising returns of 600 percent on AI-recommended shares through online investment chat rooms.

Investors who believed the gang's impersonators — posing as secretaries at domestic brokerages and as successful traders — willingly handed over their money in hopes of high returns. A fake investment app showed soaring profit figures, while the group's chat room was flooded with photos of lavish restaurant meals and spa visits. Behind it all was an elaborate fraud operation run out of a call center in Cambodia, targeting investors in South Korea.

Local police raid floors 18 and 19 of a casino hotel in Sihanoukville, Cambodia, which the gang used as its base of operations, and arrest the suspects. [Seoul Metropolitan Police Agency]

The financial crime investigation unit of the Seoul Metropolitan Police Agency's wide-area investigation division said it arrested 10 members of the Cambodia-based investment chat room fraud ring on charges of joining and operating a criminal organization and fraud, detaining nine of them.

The suspects are accused of defrauding 59 victims of approximately 9.9 billion won between February 2024 and February 2026. Police secured a pre-indictment asset preservation order covering approximately 273 million won in criminal proceeds.

Investigators found that the gang set up offices on the 18th and 19th floors of a hotel in Sihanoukville, Cambodia, and lured victims by posting Naver Band invitation links in the comment sections of YouTube channels run by well-known stock analysts.

Once victims joined the Band group, gang members posing as brokerage secretaries spent roughly a month building trust by offering free investment education and stock tips. They then told victims they could join an exclusive "secret project for Band members only," falsely guaranteeing returns of more than 600 percent on AI-recommended shares.

For victims who hesitated, gang members posed as fellow investors and posted photos of upscale restaurants and luxury goods, claiming they had made big profits. Once a victim deposited money, the gang directed them to install a counterfeit app designed to look like a real brokerage platform, which displayed fabricated transaction records and profit figures to encourage further deposits.

The gang, which defrauded 59 victims of approximately 9.9 billion won, operated four call center teams under a foreign ringleader and recruited only Korean nationals to deceive Korean investors. [Seoul Metropolitan Police Agency]

Behind the scheme was an organized criminal group led by a foreign ringleader who, around 2023, rented floors of a hotel in Sihanoukville and set up both offices and living quarters, running four call center teams staffed entirely by Korean nationals.

Roles within the organization were highly specialized. Members were assigned as "brokerage secretaries" who solicited investment, "shills" who posed as successful investors to build credibility, and "translators" who rendered Chinese-language fraud scripts into Korean. Each team carried all three roles, and members shared victim responses in real time to continuously refine their scripts, investigators said.

The gang recruited members through regional personal networks, local brokers and online job advertisements, paying them several thousand dollars depending on their role. Those impersonating brokerage secretaries were offered between $4,000 and $10,000, while translators were promised $8,000.

The arrests were made in cooperation with the pan-government special task force on transnational crime and Cambodian law enforcement authorities.

Cambodian police raided floors 18 and 19 of the Sihanoukville casino hotel on Feb. 10 and arrested the Korean suspects. The Seoul Metropolitan Police Agency launched a pre-booking investigation on Feb. 16 and detained all five gang members extradited to South Korea on Feb. 24.

One additional member extradited on March 14 was also detained. Four more members who returned to South Korea independently after the raid — between March 20 and May 20 — were subsequently arrested, with three of them detained. In total, 10 suspects have been arrested and nine detained.

"Overseas phishing fraud organizations are recruiting Koreans by offering monthly earnings of more than 10 million won along with free room and board," a police official said. "No matter where in the world they commit these crimes, they will be caught, and their criminal proceeds will be tracked down and recovered."

The official also warned that investment fraud impersonating brokerages has surged recently, urging the public not to follow links to investment group chats on Naver Band or similar platforms, and to always verify that any investment app they are asked to install is genuinely provided by a licensed brokerage.

kido@heraldcorp.com