South Korea Continues Crackdown on Illegal Gambling, Targets Payment Firms

South Korean authorities have recently finalized a probe into six local payment gateway firms, which now stand accused of having facilitated illegal gambling transactions. The firms may have done so unwittingly but are still subject to the country’s strict gambling laws.

Payment Firms Targeted in Latest Bust on Illegal Gambling

The Financial Supervisory Service (FSS), the financial watchdog, companies provided the necessary digital and payment infrastructure for what was described as “criminal organizations” to carry out their activities, involving sports and casino gambling.

“Illegal gambling has evolved into a sophisticated digital operation. We will strengthen cooperation with prosecutors and push for legislative changes to close regulatory gaps exploited by these platforms,” the regulator explained.

Essentially, the firms allowed the illegal operators to transact money from their customers to their platforms and settle payments, thus aiding the illegal activity, the FSS clarified. The issues that originated in the payment firms, though, may not have all been honest mistakes, South Korean investigators said.

In one example, a payment gateway company is alleged to have knowingly facilitated voice phishing scams, as well as a sports betting operation posing as an e-commerce website, which was a criminal enterprise.

Investigators argue that the company knew of the exact business that was conducted on the platform in question and chose to turn a blind eye. South Korean authorities have used automated monitoring and tracking tools to detect the offending parties and uncover wrongdoing.

South Korea Determined to Uproot Illegal Gambling

South Korea has been moving swiftly against the illegal gambling market in the country. A particular focus area for authorities has been the proliferation of illegal gambling among teenagers and young people.

Criminal enterprises have knowingly targeted young people, aware that they are more susceptible. In some instances, children as young as 12 may have been targeted by illegal gambling products.

In another case, authorities arrested a South Korean man who was accused of setting up, developing, and then selling gambling websites to interested parties.