Blackmail Ring Busted: Gang Stole Client Data to Threaten Victims with Fake Tapes
The South Korean police have uncovered an organized extortion ring that stole the personal data of massage parlor clients through fake mobile applications and blackmailed them with threats to release fabricated “compromising” videos. The total damage caused by the scheme exceeded 1.7 billion won (approximately 1.25 million USD).
According to the cybercrime division of Gyeonggi Province Police, five key organizers, including the group’s 30-year-old leader known as Mr. A, have been charged with forming a criminal organization, violating the Information and Communications Network Act, and extortion. Ten additional accomplices — five responsible for laundering the proceeds and five who aided in evading authorities — were referred to prosecutors without arrest.
Between January 2022 and March 2025, the perpetrators convinced massage parlor owners to install malware disguised as legitimate business software. Once the app was installed, the criminals gained access to contacts, messages, and call logs, which they used to blackmail clients with false claims of secretly recorded videos. Although no such footage ever existed, victims were threatened with exposure to family, colleagues, and acquaintances unless they transferred money.
Police identified 62 victims, 36 of whom sent payments ranging from 1.5 million won (about $1,000) to 47 million won (about $32,500) each. Another 24 extortion attempts, totaling roughly 200 million won (around $138,000), failed.
Investigators revealed that the gang’s leader purchased ready-made malware, rented an office, and, together with his associate Mr. B, orchestrated a structured operation — assigning clear roles for data collection, blackmail execution, and money laundering through intermediaries.
The group was exposed by accident, during an unrelated investigation when police discovered the infected app on a salon owner’s phone. In August 2023, Mr. B and another member were arrested. The remaining fugitives, who had been on the run for nearly two years, were gradually detained: the ringleader was caught in February 2025 on a separate charge, while his accomplices, including Mr. C, were apprehended in April and September in the cities of Gyeongnam and Busan. Before his arrest, Mr. C managed to commit two additional crimes, stealing another 36 million won (approximately $25,000).
Investigators determined that most of the stolen funds were spent on entertainment and daily expenses. Police have also referred ten other suspects involved in money laundering and concealment to the prosecution. A police spokesperson reminded citizens that installing apps from unofficial sources rather than verified app stores or official websites poses serious risks of data theft and fraud.
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