Subtitle: A 31.5% Jump in Financial Losses and a 21.2% Increase in Reported Cases

Amid growing concerns over financial crime in Japan, new police statistics reveal a significant rise in financial losses from specialized fraud in 2022. This marked the first increase in eight years, with losses totaling ¥37.1 billion, an alarming escalation of ¥8.9 billion or 31.5%, from the previous year. Furthermore, the number of reported cases soared by 3,072, or 21.2%, reaching 17,570.

Key Statistics

• Financial losses: ¥37.1 billion (an increase of ¥8.9 billion or 31.5%)
• Number of reported cases: 17,570 (an increase of 3,072 or 21.2%)

Fraud Cases and Perpetrators

Police figures showed that there were 6,640 cases of fraud in 2022, representing an increase of 40 cases from the previous year. The fraudsters came from various backgrounds, but those under the age of 20, who often assumed the role of the person receiving funds (the ‘ukeko’), were particularly evident. Shockingly, this age group was often lured into involvement through online part-time jobs, called ‘yami baito’, which turned out to be fraudulent schemes.

• Fraud cases: 6,640 (an increase of 40 cases)
• Perpetrators under the age of 20: 473

Distribution of Reported Fraud Cases

Specialized fraud cases, where victims were often targeted through phone calls or other non-face-to-face interactions, accounted for the largest share of reported incidents in 2022. The top seven prefectures accounted for more than 70% of all fraud cases throughout Japan: Tokyo, Kanagawa, Osaka, Chiba, Saitama, Hyogo, and Aichi.

• Distribution of reported fraud cases
  • Specialized fraud: Majority of reported cases
  • Top seven prefectures: 70% of all fraud cases

Financial Impact of Fraud Schemes

The financial impact of these fraud schemes was profound, with daily losses exceeding ¥101.6 million, which represented a year-on-year increase of ¥24.3 million. The average loss per case stood at a staggering ¥2.2 million.

Most Common Types of Fraud

The three most common types of fraud were ‘refund fraud’, ‘ore ore sagi’, and ‘cash card scams’. ‘Ore ore sagi’ (impersonating family members) accounted for the majority of total losses that year, at ¥12.9 billion or 35% of scam takings.

• Most common types of fraud
  • Refund fraud
  • Ore ore sagi
  • Cash card scams
  • Ore ore sagi accounted for the majority of total losses (¥12.9 billion or 35%)

Combating Financial Fraud

Experts, law enforcement agencies, and policymakers are working to combat the rising trend of financial fraud in Japan. Stay tuned for the latest updates and developments.