Scammers Impersonating Friends Target Middle and Elementary School Students with Verification Code Fraud

Overview of the Scam

Scam groups in Taiwan are targeting middle and elementary school students with a new fraud scheme that preys on their lower guard. The criminal investigation bureau has reported 188 related fraud cases in the past three months, and the numbers are growing.

How the Scam Works

Scammers execute the fraud through the following process:

1. Creating Impersonation Accounts: Fraudsters create fake accounts with names and profile pictures nearly identical to real friends. The difference is usually just one character, making them extremely difficult to distinguish.

2. Building Trust: They contact the student with urgent-sounding requests such as "My phone is locked," "Can I borrow your phone number?" or "I need you to receive an SMS." The urgency makes students more likely to comply.

3. Obtaining Verification Codes: Scammers ask for the student's phone number and request that they forward any one-time verification codes (OTP) they receive. From the student's perspective, they're just forwarding a message—they don't realize they're authorizing a payment.

4. Executing Unauthorized Purchases: Meanwhile, the scammers initiate transactions for digital products or services using that phone number from another location. When a verification code is sent to that number, the student unwittingly forwards it, allowing the scammers to complete the purchase.

5. Billing and Payment: Through telecom billing services, the purchased items are charged to the phone bill. The fraud is typically completed before parents discover the unauthorized charges.

How to Identify and Protect Against This Scam

Warning Signs When Communicating with Friends

• Be suspicious of accounts with nearly identical names but slight variations (one character different).
• If a friend asks for unusual assistance like borrowing your phone number or forwarding verification codes, verify their identity through a phone call or in-person conversation.

Verification Codes, Passwords, and Security Codes

• Never share these with anyone, regardless of who asks.
• Understand that these codes are authorization tools—sharing them means authorizing payment on your behalf.

Understanding Telecom Billing Services

• Many digital services send verification codes via SMS to complete purchases. When you enter the code, payment is automatically authorized.
• While convenient, this system is vulnerable to abuse by scammers who trick students into forwarding the codes.

Prevention Tips

What Parents and Students Should Do

1. Check Phone Settings Immediately: Parents should verify whether their child's phone has telecom billing services enabled. If not needed, disable this feature.

2. Never Share Verification Codes: Regardless of who claims to be on the other end, verification codes, security codes, and passwords must never be shared.

3. Always Verify Identity: Before providing phone numbers, forwarding messages, or sharing codes, always confirm the person's identity through a phone call or face-to-face meeting.

4. Strengthen LINE and Social Media Security:

   • Never share verification codes
   • Complete account security settings
   • Link your personal Apple or Google account
   • Enable suspicious website detection

If Unauthorized Charges Occur

1. Save screenshots of suspicious private messages, account information, and SMS notifications.
2. Contact your telecom provider immediately (e.g., Chunghwa Telecom).
3. File a police report.
4. Contact the anti-fraud hotline at 165 to verify and report the incident.

Where to Report

Taiwan

• Anti-Fraud Hotline: 165
• National Police Agency: https://www.npa.gov.tw/
• Chunghwa Telecom Customer Service: For billing inquiries and dispute resolution

In other regions, please report similar incidents to local police or cybercrime units.