Deals & Cases

Violation of the Electronic Financial Transactions Act
Violation of the Electronic Financial Transactions ActNon-referral

Financial Transaction Violation Case | Deceived by a Loan Text Message into Violating the Electronic Financial Transactions Act, Non-Referral

The client charged with a financial transaction violation had trusted a loan text message, provided account information, and then suddenly received notice that the account had been frozen. The client therefore requested help from a criminal defense attorney.

1. The Client Charged with a Financial Transaction Violation

The client who requested a consultation regarding a financial transaction violation case was an ordinary citizen who had lived a life unrelated to crime.

However, after receiving a loan information text message and coming into contact with an unidentified person, the client became caught up in an unexpected situation, and immediately after receiving a call from the police identifying the client as the ‘holder of the receiving account in a financial fraud case,’ the client requested help from a criminal defense attorney.

Background of the Case

The client needed several million won in urgent funds for a child’s study-abroad matter.

The client, who already had substantial debt, was blocked from a bank loan and, trusting a single loan information text message, began a phone call with a consultant.

The consultant approached in the following manner.

“To execute the loan, a new account must be opened”

“For identity verification, please provide the account number, password, and verification number”

The client thought of this only as part of the loan procedure and, following the consultant’s instructions, opened the account and provided the information accordingly.

However, a few days later the client suddenly received a notice stating that the account was ‘suspected of being used in fraud and that transactions would be suspended.’

Only then did the client realize that the client had been used in a crime, and immediately changed the password, disabled the linkage to other accounts, and filed a cybercrime report.

However, a police investigation was already scheduled, and the client, judging it difficult to handle alone, came to request assistance from a criminal defense attorney of this firm.

Electronic Financial Transactions Act violation case client story

The Criminal Defense Attorney's Explanation of the Case

Article 6-3 of the Electronic Financial Transactions Act prohibits the following acts.

The act of providing or transferring account information and the like for the purpose of using it in a crime, or while knowing that it will be used in a crime

In other words, the act itself of simply informing another person of one’s own account number, password, and the like may be suspected as ‘provision of an access medium.’

In fact, because many voice phishing and financial fraud organizations exploit accounts in victims’ names, the police conduct the investigation treating such persons as suspects in these situations.

In the client’s case as well, it was confirmed that the person who sent the loan text message used the client’s account as a channel for transferring criminal proceeds, and the suspicion was raised that the client ‘had handed the account over to a criminal organization.’

However, for this crime to be established, one more crucial element is required.

That is intent, namely “the awareness that one provided the account while knowing that the account could be used in a crime.”

Therefore, from the early stage of the case the criminal defense attorney focused the strategy on proving, through specific facts and circumstances, that ‘there was no intent.’

2. Response Strategy for the Financial Transaction Violation

Electronic Financial Transactions Act loan fraud victim response strategy

The criminal defense attorney focused on proving that the client was merely a victim who had been deceived by a criminal organization’s instructions into transferring account information, and that the client did not at all recognize the possibility of its use in a crime.

The strategy was organized around the following four pillars.

The Criminal Defense Attorney's Strategy ① | Proving the Absence of Intent

The criminal defense attorney specifically organized and submitted the reasons why the client had no choice but to misunderstand the loan consultant’s explanation as a ‘loan procedure.’

∙ No experience of or knowledge about fraudulent loan text messages

∙ Mistaken belief that opening an account and providing a password were a normal procedure

∙ The purpose of providing the access medium was solely loan approval

∙ The presence of a desperate situation in which the loan was urgently needed

Through this, the attorney was able to clearly support the point that the client had no intent to take part in a crime.

The Criminal Defense Attorney's Strategy ② | Analysis of the Fraud Organization's Method of Deception

The criminal defense attorney analyzed the organization’s method of approach, conversation pattern, use of virtual numbers, and urgent time pressure, and logically established that the client was a victim exposed to the deception of a typical loan fraud organization.

The attorney also emphasized that there were clear circumstances indicating that the client had been induced to provide information (the password and verification number) that a financial institution would never request in its normal procedures.

The Criminal Defense Attorney's Strategy ③ | Preemptive Response After Recognizing the Fraud

Upon being notified that the account had been frozen, the client immediately took the following measures.

∙ Reporting the financial fraud damage

∙ Changing the password and terminating the linked account

∙ Sending the loan consultant a message stating “if this is fraud, I will report it”

∙ Immediately expressing the intent to cooperate with the police investigation

The criminal defense attorney emphasized the client’s active response and argued that it was the typical behavior of a victim that would not be seen in a criminal.

This worked very effectively in persuading the investigative authority.

The Criminal Defense Attorney's Strategy ④ | Composition of Credibility Materials

The criminal defense attorney systematically submitted the following materials to enhance the credibility of the client’s statements.

∙ A first-offender record with no prior convictions

∙ Financial materials actually proving the existence of debt and the need for a loan

∙ Messenger and call records containing the entire fraud process

∙ An organized account of the subsequent report and the course of the response

Comprehensively considering these materials, the investigative authority reached the conclusion that “the suspect’s statements are not false or intended to conceal a crime, but are consistent with the actual characteristics of a victim.”

3. Result of the Financial Transaction Violation Case, a ‘Non-Referral (No Suspicion of Crime)’

Electronic Financial Transactions Act violation case result non-referral

With respect to the financial transaction violation charge, after reviewing all of the materials submitted by the criminal defense attorney, the organization of the statements, and the client’s manner of response, the police determined that “the client had no intent to take part in a crime.”

As a result, a decision of ‘no suspicion of crime (non-referral)’ was rendered on the charge of violating the Electronic Financial Transactions Act.

The client, who had been placed at risk of criminal punishment due to a momentary mistake, escaped that situation and was able to recover everyday life and trust in every respect, including work, family, and financial transactions.

The Risk of the Act of Transferring Account Information

Article 6-3 of the Electronic Financial Transactions Act requires very strict care in the use and management of account information.


If anyone provides, transfers, keeps, or distributes to another person an access medium such as one’s own account number, password, or verification number, for the purpose of its use in a crime or while knowing that it will be used in a crime, a crime is established.

Penalty

Electronic Financial Transactions Act, Article 49(4)

Penalty

A person who, in violation of Article 6-3, receives or

provides account-related information, or keeps, transfers, or distributes it

Imprisonment for up to 5 years or a fine of up to 30 million won

In other words, there is a significant risk in that the act itself of transferring account information to another person can become a means of crime.

In particular, if it is used by a voice phishing or fraud organization, a person may become a subject of investigation even without intending it.

If You Are Facing a Police Investigation

Daeryun Law Firm provides professional strategies based on experience accumulated through handling many similar cases, including voice phishing, involvement in loan fraud, and charges of providing an access medium.

After accurately identifying the facts, the firm prevents the client’s disadvantageous statements through organizing the direction of the statements and accompanying the client to the police investigation.

In addition, the firm provides multifaceted assistance with the case through collaboration with experts in specialized fields, such as digital forensics experts and evidence investigation experts.

If you are facing a police investigation in a similar situation, please feel free at any time to entrust your case through a 🔗legal consultation reservation.

Frequently Asked Questions Related to the Case

Q. Does merely having informed someone of account information amount to a violation of the Electronic Financial Transactions Act?

A. The key is ‘whether one provided it while recognizing that it would be used in a crime (intent).’

If you were deceived or could not at all have foreseen the possibility of a crime, you can avoid punishment by proving the absence of intent.

Q. In a case of violating the Electronic Financial Transactions Act, how should I respond before the police investigation?

A. It is important to prepare your statements through a consultation with a criminal defense attorney before the investigation.

If you accurately organize the facts and prepare materials that prove you provided the account without intent (text and call records, financial transaction details, and the like), you can minimize the disadvantage even in the police investigation.

전자금융거래법

This content is based on actual cases handled by Daeryun Law LLC and has been partially adapted. All copyrights belong to Daeryun Law LLC.
Unauthorized reproduction, copying or distribution may result in legal action under applicable laws.

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