Illegal gambling operation dupes 40,000 individuals in South Korea

The Gyeongbuk Provincial Police Agency's Cyber Investigation Unit confirmed on Monday its decisive actions against a criminal syndicate, as reported by The Chosun Daily. The investigation uncovered an online gambling site that falsely claimed a connection with Kangwon Land, South Korea's only casino where locals can gamble. The criminal group misused Kangwon Land's logo on their illegal gambling site to deceive customers into thinking it was affiliated with the legitimate casino. This website operated from October 2022 until last year, handling an impressive 78 billion won, or $55.2 million, in deposits and withdrawals. A law enforcement representative stressed that organizations like these, which attempt to defraud the public by impersonating reputable businesses, will be relentlessly pursued and punished to the fullest extent of the law.

Police have reported that a criminal syndicate used AI technology to craft promotional content, including deepfake videos featuring the likenesses of famous athletes. These videos aimed to lure users into joining an illegal gambling platform by misleading them into thinking it was legitimately affiliated with Kangwon Land. The investigation revealed that the illegal website had attracted about 40,000 users, mostly from South Korea. Authorities have arrested 58 individuals, including Russian nationals, suspected of being involved in the operation. The probe exposed a complex, corporate-like structure behind the syndicate, with organized roles for customer recruitment, deposit processing, money laundering through mule accounts, and other essential functions that helped it operate covertly.