Financial Crime Trends on the Rise in Japan

According to the latest statistics from the National Police Agency, specialized fraud losses in Japan have seen a significant increase of 31.5% year-on-year in 2022, reaching a total of ¥37.1 billion.

Fraud Losses and Reported Cases Surge

The number of reported cases also saw a notable spike of 21.2%, with a staggering 17,570 incidents recorded. The police handled 6,640 cases of fraud in 2022, involving 2,458 fraudsters - an 84% increase from the previous year.

Online Recruitment of Young Fraudsters

Alarmingly, nearly 70% of these young accomplices were recruited online through websites for so-called “dark part-time jobs” (yami baito).

Geographic Distribution of Fraud Cases

The majority of fraud cases occurred in major metropolitan areas, with Tokyo, Kanagawa, Osaka, Chiba, Saitama, Hyōgo, and Aichi prefectures accounting for approximately 70% of all reported incidents.

Specialized Fraud on the Rise

Specialized fraud, which involves convincing victims to wire money to a specified bank account without face-to-face interaction, has become increasingly prevalent. The average daily losses from specialized fraud increased by ¥24.3 million to ¥101.6 million in 2022, while the amount per case rose by ¥166,000 to ¥2.2 million.

Types of Fraud

The breakdown of main types of fraud shows that:

• Refund Fraud: 4,679 cases reported
• Ore Ore Sagi (It’s Me, It’s Me Scams): 4,287 cases reported, with a total take of ¥12.9 billion or 35% of the total take from all scams combined
• Cash Card Scams: 3,074 cases reported

Prevention is Key

As authorities continue to grapple with these sophisticated fraud schemes, it is essential for individuals to remain vigilant and take necessary precautions to protect themselves from financial exploitation.