LS Securities Loses Tens of Billions Won to Spoofed Email Fraud Targeting Foreign Investor

According to financial authorities, LS Securities employees processed stock orders and cash withdrawals totaling tens of billions of won earlier this year after receiving spoofed emails targeting a foreign investor's account. The Seoul Metropolitan Police Cyber Investigation Division has launched a formal investigation into the incident.

LS Securities stated its internal systems were not directly compromised; the foreign investor's email account was compromised instead. The financial regulator is examining whether the firm's internal control procedures adequately verified transaction requests directly with the investor.