Thanks to an Artificial Intelligence (AI) scammers behind M Coin are now in custody and will appear in court to answers to charges. The scammer’s ring includes two CEOs and 10 of their accomplices. Per report from the Seoul Special Judicial Police Bureau for Public Safety, the above were able to lure 56,000 people into their scheme and walked away with 21.2 billion won. The latter is equivalent to $18.7 million. The CEOs surname is Lee, and Bae and their targets were mostly people in their 60’s or 70s. The latter are primarily retirees, housewives and among other seniors. The Ponzi scheme was on for about six months.
How the AI Worked To Locate the Scammers
According to a statement from the section chief of the bureau’s second investigation team Hong Nam-ki, the artificial intelligence [AI] investigator was furnished with specific data patterns and keywords used to lure people into their trap. Some of the keywords used include recruiting members, loan, and Ponzi. Besides the above, the AI also identified the enterprise running the scheme together with adverts patterns. However, in this case, the police also had info from an informant. In addition to the above, the police had a stakeout which was productive and showed those lured were mostly older adults.
To become a member, one had to part with 990,000 won or 330,000 won with the former granting the member premium status for ten years. The ten-year premium membership came with other goodies such as discounts during weddings or funerals, and lodging. The above ring had an exchange up and running together with a member’s only e-commerce site. In addition to the above, recruiting a new member led to the member recruiter getting 60,000 won in cash. Further on, if the new member brought in another member who signed up, the former recruiter will cash in 120,000 won. Similarly, recruiting other members led to the organizers awarding you with 600 worth of crypto M-Coin valued at 100 to 500 won for a token.
To avoid the police radar, the organizers had servers in Japan, operated from 201 business premises. The serve had all accounting information for the organization. However, upon noticing an investigation was launched, the offices were closed down, and business moved to a private house. Furthermore, they had an employee hide a computer with data in a vehicle trunk.