South Korean Police Shut Down Card Mule Network That Catered to Online Gambling Sites

South Korean police say they have dismantled a network of card mules who let money launderers use their bank accounts to hide cash for online casinos.

The city of Ulsan’s Nambu Police Department said it arrested two suspected ringleaders on charges of violating the Electronic Financial Transactions Act, the South Korean newspaper Kyeongsang Ilbo reported.

Both have been released on bail pending an indictment from prosecutors. Police said they also arrested 62 suspected mules. Officers said the masterminds offered the individuals, mostly “small business owners and housewives in need of cash” during the economic downturn, 1.5 million won (just over $1,000) per month.

In return, the mules opened bank accounts, which the ringleaders could access as they wished, police said.

The network also allegedly used the bank accounts to launder funds for investment fraudsters and voice phishing rings. In total, the masterminds laundered 200 million won, or $135,000, over four months.

Card Mule Network: Police Investigation Continues

Police said the masterminds used 76 bank accounts to launder the money. They allegedly offered mules bonuses for helping friends and relatives join the scheme.

Most of the mules are aged 50 or above, officers said. Many were in “urgent need of living expenses” and had outstanding bills to pay.

The masterminds delivered the mules’ bank books and cards to recipients using a range of courier bus services from Ulsan Intercity Bus Terminal.

In some instances, they “dead-dropped” the bank books. This involved leaving books hidden in public places so criminals could pick them up without in-person contact.

Drug dealers use similar methods to sell narcotics in South Korea, with deals conducted anonymously via Telegram.

Police Issue Public Warning

Police said they had evidence that criminals used the accounts to process money for illegal online gambling sites. Scam network operators also used some of the accounts.

Officials said they are expanding the scope of their investigation by analyzing chat app messages. They said they are still trying to identify more card mules who may have been involved in the network.

“Even the simple act of lending your bank book to a friend can be considered a serious crime. Such crimes are subject to serious punishment,” said a Nambu Police Station official. “People must be extremely cautious about individuals who offer them quick and easy rewards in return for access to their bank accounts.”