Money Transfer Fraud Schemes Continue to Plague Japan Despite Increased Awareness

Tokyo, Japan - The number of cases involving money transfer fraud in Japan remains alarmingly high, with many fraudulent activities utilizing cryptocurrencies.

Growing Concerns and Response

The Financial Services Agency has launched a campaign to urge financial institutions to bolster their user protection measures. The agency has partnered with the National Police Agency (NPA) to share best practices and strategies for detecting and preventing fraud.

New Initiatives Implemented by Financial Institutions

Several financial institutions have already implemented new initiatives aimed at safeguarding customer accounts from fraudulent activities:

• Some banks are now requiring that transfers to crypto-asset exchange service providers be halted if the sender’s name does not match the account holder’s name.
• Others are stepping up monitoring efforts to detect unlawful transfers and prevent them from occurring.

Agency Request for Industry Partnerships

The Financial Services Agency has issued a formal request to various financial industry associations, including:

• Japanese Bankers Association
• Regional Banks Association of Japan
• Others

to implement these measures and share their experiences with other institutions. The agency spokesperson emphasized the importance of taking immediate action to protect customers from falling victim to sophisticated scams.

Prevention and Assistance Resources

Individuals who suspect they may have been a victim of money transfer fraud can contact:

• AML / CFT Planning Office, Risk Analysis Division, Financial Services Agency at +81-(0)3-3506-6000 for assistance.
• The NPA’s online portal with information on money transfer fraud schemes and prevention tips: https://www.npa.go.jp/bureau/cyber/koho/news/20240206.html

Note: The website is available in Japanese only.