‘Rich dad’ in illegal action power….Helpless financial sector
[ Kang Eun Seong esther@ ] | 2017-06-22 10:54:27
The fact that so-called `New dad`, `Rich dad`, `Rich Club`, etc., which have massively been distributing unidentified stock information of KOSDAQ stock by text messaging (SMS) and attract investment, acquire personal information illegally manipulated by fake phone numbers has been confirmed. Korean internet management organizations such as the Korea Internet Promotion Agency are planning to conduct on-site investigation under consideration of the gravity of the issues. On the other hand, financial authorities such as the Financial Supervisory Service and the Korea Stock Exchange have maintained a ambiguous response, saying that ‘the damage to investors is not large.’
According to the Korea Institute of Internet Promotion on June 21, Internet Research Institute investigated and sent letters to a large number of unspecified majorities over the past month and as a result, mobile phone numbers sent letters were identified as illegally counterfeited.
The parties who are suspected of illegally forgery are those who are currently distributing letters in large quantities to induce stock purchase with the unconfirmed information of certain KOSDAQ listed companies in the stock market. They urge investors to buy stocks of certain stocks under the names such as Rich Dad, Rich Club, and New Rich Dad.
Korea Internet and Security Agency representative stated, "As a result of tracking the origination number of the letter, it has been confirmed that the letter was sent through a service in a large number of letters from the Internet site. And most letters were found to be forged. "
According to the Telecommunications Business Act revised in April 2015, the fabricating the mobile phone number is illegal. Ministry of Science, ICT and Future Planning representative explained, "The fabricating mobile phone number is mostly carried out for illegal fraud purposes such as smithing and voice phishing are subject to up to 3 years imprisonment or up to KRW 100 million penalty.” He also pointed out that the illegal acquisition and abuse of a large number of personal information in the process of distributing a large number of characters to an unspecified number of people was also revealed. Personal information protection experts said, "It is difficult to see letters sent by the name of new rich dad etc. simply as `an unspecified number` as most letters were sent to specific people. It can be predicted that the sender collects personal information and send letters based on them." He also added, "Under the Personal Information Protection Act, people who use others personal information improperly are subject to up to 2 years imprisonment or up to KRW 7 million penalty."
There is also a possibility that a messaging site was used through impersonation and hacking without legitimate use of messaging sites.
Korea Internet and Security Agency (KISA) is blocking illegal numbers accordingly. However, the blocked number is one time anyway, and the next day, another number is forged and the message can be sent again. KISA has decided to consider the matter to be serious as it plans to carry out on-site investigation of the text sending companies.
Meanwhile, the financial authorities have taken only measures to venture investors` attention, and there is no intensive investigation plan yet such as tracking letter senders.
The Financial Supervisory Service and the Korea Exchange have seen the stocks fluctuate sharply due to the operation forces and some individual investors suffered losses. In fact, the Financial Supervisory Service (FSS) stated, "As a result of the investigation, the stock prices during the mass-mailing period stimulated investors` purchase sentiment. In analyzing the trading trends, foreigners and institutions showed net sales tax during the charge period, while individual investors (who were exposed to false information) recorded a total appraisal loss of KRW 9.5 billion due to intensive net selling." It is difficult for the financial authorities to find fabrication forces, and also it is difficult to intervene aggressively as there is no specific accusation by a victim.
Financial Supervisory Service representative pointed out, "In the early days of sending messages, the share price has been fluctuating and evaluation loss has been appearing, that is why we are monitoring precision. However, the stock market has not changed much due to media reports, monitoring by supervisory authorities and investor`s attention."
The Korea Exchange stated, "It is not easy to actually find the operational forces, and in fact, it is difficult to punish them as it is hard to find if they actually have received any profit. We are issuing warnings to remind investors, and investors are not misled by the warning of the state.
Meanwhile, an Internet expert explained, "Illegal information disseminated by illegal information has a significant effect on illegal activities in addition to detecting suspected criminals. If the financial authorities conduct the investigation more actively as much as it is enforced, it will shrink the activities of the illegal forces to distribute false facts and take profits."
By Kang Eun Seong esther@
[ copyright ⓒ The Digitaltimes ]
According to the Korea Institute of Internet Promotion on June 21, Internet Research Institute investigated and sent letters to a large number of unspecified majorities over the past month and as a result, mobile phone numbers sent letters were identified as illegally counterfeited.
The parties who are suspected of illegally forgery are those who are currently distributing letters in large quantities to induce stock purchase with the unconfirmed information of certain KOSDAQ listed companies in the stock market. They urge investors to buy stocks of certain stocks under the names such as Rich Dad, Rich Club, and New Rich Dad.
Korea Internet and Security Agency representative stated, "As a result of tracking the origination number of the letter, it has been confirmed that the letter was sent through a service in a large number of letters from the Internet site. And most letters were found to be forged. "
According to the Telecommunications Business Act revised in April 2015, the fabricating the mobile phone number is illegal. Ministry of Science, ICT and Future Planning representative explained, "The fabricating mobile phone number is mostly carried out for illegal fraud purposes such as smithing and voice phishing are subject to up to 3 years imprisonment or up to KRW 100 million penalty.” He also pointed out that the illegal acquisition and abuse of a large number of personal information in the process of distributing a large number of characters to an unspecified number of people was also revealed. Personal information protection experts said, "It is difficult to see letters sent by the name of new rich dad etc. simply as `an unspecified number` as most letters were sent to specific people. It can be predicted that the sender collects personal information and send letters based on them." He also added, "Under the Personal Information Protection Act, people who use others personal information improperly are subject to up to 2 years imprisonment or up to KRW 7 million penalty."
There is also a possibility that a messaging site was used through impersonation and hacking without legitimate use of messaging sites.
Korea Internet and Security Agency (KISA) is blocking illegal numbers accordingly. However, the blocked number is one time anyway, and the next day, another number is forged and the message can be sent again. KISA has decided to consider the matter to be serious as it plans to carry out on-site investigation of the text sending companies.
Meanwhile, the financial authorities have taken only measures to venture investors` attention, and there is no intensive investigation plan yet such as tracking letter senders.
The Financial Supervisory Service and the Korea Exchange have seen the stocks fluctuate sharply due to the operation forces and some individual investors suffered losses. In fact, the Financial Supervisory Service (FSS) stated, "As a result of the investigation, the stock prices during the mass-mailing period stimulated investors` purchase sentiment. In analyzing the trading trends, foreigners and institutions showed net sales tax during the charge period, while individual investors (who were exposed to false information) recorded a total appraisal loss of KRW 9.5 billion due to intensive net selling." It is difficult for the financial authorities to find fabrication forces, and also it is difficult to intervene aggressively as there is no specific accusation by a victim.
Financial Supervisory Service representative pointed out, "In the early days of sending messages, the share price has been fluctuating and evaluation loss has been appearing, that is why we are monitoring precision. However, the stock market has not changed much due to media reports, monitoring by supervisory authorities and investor`s attention."
The Korea Exchange stated, "It is not easy to actually find the operational forces, and in fact, it is difficult to punish them as it is hard to find if they actually have received any profit. We are issuing warnings to remind investors, and investors are not misled by the warning of the state.
Meanwhile, an Internet expert explained, "Illegal information disseminated by illegal information has a significant effect on illegal activities in addition to detecting suspected criminals. If the financial authorities conduct the investigation more actively as much as it is enforced, it will shrink the activities of the illegal forces to distribute false facts and take profits."
By Kang Eun Seong esther@