Social media impersonation scams are increasingly targeting celebrities, politicians, and prominent business leaders, raising concerns over potential fraud and the theft of trade secrets. The latest targets include top executives from major Korean companies like Samsung Electronics and Hyundai Motor Group. These impersonation attempts are sparking calls for stronger penalties to deter such fraudulent activities.
To tackle the increasing incidence of impersonation scams, the Seoul Metropolitan Police Agency has initiated an investigation into multiple social media accounts posing as Sung Kim, the newly appointed head of Hyundai Motor Group’s strategic planning division. This move highlights growing concerns over the risks posed by fake accounts on social media and their potential to cause substantial damage.
The Seoul Metropolitan Police have identified over 14 Facebook accounts impersonating Sung Kim, a former U.S. diplomat and the newly appointed president of Hyundai’s strategic planning division. These fake profiles used Kim’s photos and personal details, including his educational background, to deceive the public. One of these accounts even attempted to extract personal information from a Hyundai employee, though the attempt was unsuccessful. Similar complaints have been lodged with U.S. authorities regarding these impersonations.
Social media platforms remain a key venue for online impersonations, with nearly 80% of fraudulent profiles targeting public figures found on Facebook, Instagram, and other platforms. An Instagram account impersonating Samsung Electronics Chairman Lee Jae-yong amassed over 450,000 followers before it was deleted in January. Originally a fan page, this account posted a photo of Lee enjoying fish cakes at a traditional market in Busan, accompanied by a message that misled followers into believing it was from the chairman himself.
Impersonation scams are also affecting the financial sector. Fraudsters have posed as former executives of Hanwha Investment Securities and Meritz Asset Management, attempting to lure individuals into illegal investment schemes. The National Police Agency reported that between September 2023 and February 2024, 2,517 phishing cases linked to impersonation scams resulted in financial losses totaling approximately 237.1 billion won ($165.1 million).
Experts argue that legal loopholes are hindering efforts to combat these impersonation crimes. Current laws primarily focus on defamation, which requires evidence of harmful false statements, making it difficult to take down fake accounts without clear reputational damage.
Hwang Sung-ha, a managing partner at Law Firm Yeol, emphasized the need for stricter regulations to address this growing issue and protect individuals and businesses from the harm caused by online impersonators.
Under Article 70 of the Act on Promotion of Information and Communications Network Utilization and Information Protection, those found guilty of using communications networks to defame others can face up to three years in prison or a fine of up to 30 million won. However, suppose the defamatory content is spread through a fake account. In that case, the punishment increases, with offenders facing up to seven years in prison, a suspension from certain civil roles for up to 10 years, or a fine of up to 50 million won. Despite these penalties, legal experts note that many cases result in only minor fines, as courts often fail to acknowledge reputational damage.
A proposed amendment to the Information Act, currently under discussion in the National Assembly, seeks to criminalize the creation of fake online accounts, regardless of intent. If passed, the law would impose a prison sentence of up to one year or a fine of up to 10 million won on perpetrators. While countries like the U.S. and Canada have already implemented penalties for impersonation, they typically focus on cases involving extortion or other malicious intent.
