South Korea To Monitor Cryptocurrency Phishing Due To High Phishing Reports
South Korea's Ministry of Science and ICT is working with the Korean National Police Agency to bust the growing crypto phishing websites through a new system, Yonhap reports. This follows a rise in phishing attempts targeting crypto users.
South Korea Clamps Down On Crypto Phishing
The platform will run a 24-hour surveillance system to detect and swiftly take down fake websites.
The ICT ministry disclosed that it had become important to tackle the problem because of the increasing reports of phishing attempts via text messages.
These text messages trick cryptocurrency users into entering their exchange IDs and passwords on fake websites where scammers use them to steal their funds.
In barely three months, 32 phishing websites were identified and blocked by the ministry. This is more than the 41 websites detected in the whole of last year.
The Police have been conducting a crackdown on phishing websites since the start of March this year. According to the report, the police investigated 21 cases in which individuals accessed other cryptocurrency users' accounts and sold their assets.
Phishing attacks have become increasingly sophisticated, with criminals creating emails and websites that resemble official company correspondence to target people online.
They rely on people misspelling web addresses and clicking on links that could compromise their security. A prime example of phishing websites found and blocked in South Korea was Bithnub.com—created to lure Bithumb clients to a fake website and steal their login details.
South Korea Getting Tough On Crypto
As prices of cryptocurrencies continue to surge in the East Asian country, the financial authorities have made their intentions to crack down on all illicit crypto activity clear.
The regulators are also getting strict on the exchanges in the country. The Korea Federation of Banks recently raised the alarm over the increase in altcoin trading volumes across crypto exchanges in the country.
The association is reportedly concerned about the potential risks of banks providing account services to exchanges overexposed to altcoins. To this effect, the bank association has asked its members to investigate the alternative coins available for trading on crypto exchanges.
Back in March, South Korea's financial regulator, the Financial Services Commission (FSC), implemented a new rule suggesting hefty penalty standards and fines for all virtual asset services providers (VASPs), including exchanges, that fail to report suspicious transactions and keep relevant data.
This led to some exchanges suspending trading in South Korea.