South Korean payment firms accused of aiding online gambling
Six payment gateway companies are accused of facilitating illegal online gambling operations
South Korea.- Six domestic payment gateway (PG) firms have been accused of facilitating gambling operations and other illegal activity. According to the Financial Supervisory Service (FSS), the companies provided virtual accounts and payment processing infrastructure to criminal organisations.
Authorities say one unnamed company became a key financial enabler of voice phishing scams and illicit betting operations disguised as an ecommerce platform. The head of another company is accused of fabricating credit card sales data and using shell companies to obtain loans fraudulently.
The cases were uncovered through South Korea’s virtual account monitoring system, which detects irregularities in monthly transaction data. Regulators then conducted targeted on-site inspections.
“Illegal gambling has evolved into a sophisticated digital operation,” a spokesperson stated. “We will strengthen cooperation with prosecutors and push for legislative changes to close regulatory gaps exploited by these platforms.”
Gambling in South Korea is highly restricted and most forms are banned for locals.
