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Financial watchdog warns against scams involving shaman impersonators

Published: 11 Feb. 2026, 14:36 Updated: 11 Feb. 2026, 17:22

The Financial Supervisory Service headquarters in Yeongdeungpo District, western Seoul, is seen in this file photo. [JOONGANG ILBO]

A new type of illegal investment scam, which lures investors using shamanistic practices such as fortune telling, is spreading, Korea's financial watchdog warned on Wednesday.

The Financial Supervisory Service (FSS) issued a consumer alert at the “caution” level and urged investors to be on guard against the new tactic.

Scam groups operating out of bases in Vietnam and other countries are approaching investors through social media and offering to read their fortunes or provide advice on their financial luck, according to the FSS and police.

After convincing the victim that they will likely be lucky with their investments, the perpetrators then persuade them to install a fake stock trading app called PIPS Assets that the scammers developed themselves.

Initially, the perpetrators induce victims to make small investments worth around 100,000 to 200,000 won ($68 to $137) and show them fabricated profits. They even allow victims to make actual withdrawals to build trust between them. Once the investment amount grows, the scammers demand additional deposits under the pretext of loan repayments or taxes before disappearing with the money.

According to the FSS, other forms of fraud — such as those involving global asset management firm employee impersonators — also remain active. For example, perpetrators may approach victims by posing as a worker at a well-known British investment firm and entice them with shares that have a genuine chance of getting listed.

A shaman performs a ritual in this file photo. [YONHAP]

They then sell virtually worthless unlisted shares at inflated prices — accompanied by false information about impending listings — before cutting off contact. In some cases, shares worth 1,000 won have been sold for 40,000 won, showing that scammers are using increasingly sophisticated tactics.

“Fake stock trading apps are so elaborately designed that it is difficult for ordinary investors to distinguish them from legitimate platforms,” the FSS warned.

The regulator also noted that blog reviews and posts formatted like online news articles may have been manipulated by illegal operators who were paid to create them.

“Legitimate financial institutions do not solicit investments through unofficial channels, such as one-on-one chat rooms,” an FSS official said. “Since [financial] losses from transactions with illegal operators are difficult to recover afterward, investors should verify whether a company is a legitimate financial institution before investing.”

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY KO SEUNG-PYO [[email protected]]