Illegal gambling ring deceives 40K people in South Korea

• Criminal syndicate operating a gambling website and falsely claiming association with Kangwon Land, a land-based casino, was taken down by law enforcement
• The group misled customers with the use of deepfake videos and promotional content featuring popular athletes, recruiting 40,000 customers
• Police arrested 58 people, including Russian nationals, for their suspected involvement

A criminal group operating illegal online gambling website and using deepfake imagery of popular athletes had tens of thousands of customers.

The group was taken down by law enforcement in South Korea, resulting in the arrest of dozens of suspects.

Fraudulent claims about association with Kangwon Land

Confirmation about the decisive actions against the criminal syndicate emerged from the Gyeongbuk Provincial Police Agency's Cyber Investigation Unit on Monday, a report released by the local media outlet, The Chosun Daily, reveals.

An investigation identified an online gambling website which fraudulently claimed association with the only casino in South Korea that permits local residents from gambling, Kangwon Land.

Police found the criminal group used Kangwon Land's logo for an illegal gambling website in order to mislead customers into believing the website was related to the land-based casino.

Law enforcement found that the illegal gambling website operated from October 2022 until last year, recording 78bn won, or $55.2m in deposits and withdrawals.

A representative of law enforcement confirmed that criminal gambling organizations that attempt to defraud the public and misuse the names of legitimate businesses will be tracked down and punished to the full extent of the law.

Dozens of suspects arrested, deepfake of athletes lured gamblers

According to police, the criminal syndicate used AI to create promotional content, including deepfake videos, using the likeness of famous athletes.

Such videos and promotional content sought to encourage users to join the illegal gambling platform and mislead them into believing it was a legitimate website tied to Kangwon Land.

The investigation by law enforcement uncovered the illegal gambling website had approximately 40,000 users, primarily from South Korea.

A total of 58 suspects, including Russian nationals, were arrested for their alleged involvement in the illegal gambling syndicate.

The illegal gambling probe identified a complex corporate-like structure that ran the criminal syndicate.

The group had dedicated roles for recruiting customers, processing deposits, laundering proceeds via mule accounts, and other key roles that enabled it to operate under the radar.

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