Japan Sees Rise in Financial Crime Cases for First Time in Four Years

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Provisional data released by Japan’s National Police Agency reveals that the number of reported specialized fraud cases in 2021 increased for the first time in four years, with a total of 14,461 cases reported. This marks a 6.7% increase from the previous year, with financial losses amounting to ¥27.8 billion.

Types of Fraud on the Rise

The rise in cases was largely driven by an surge in “refund scams,” where victims are targeted with promises of refunds for medical bills or insurance premiums. A staggering 4,001 cases of refund fraud were reported in 2021, a more than double increase from the 1,804 cases recorded in 2020.

Other types of fraud also saw significant increases:

• “It’s me, it’s me scams,” where fraudsters impersonate family members
• “Cash card scams,” where elderly individuals are tricked into handing over their cash cards

Victims and Financial Losses

The National Police Agency has warned that the situation remains serious, with high levels of financial losses particularly affecting elderly individuals. The majority of victims are concentrated in major metropolitan areas, with Tokyo reporting the largest number of cases at 3,319.

• Average loss per case: ¥2.0 million
• Daily amount of financial losses from specialized fraud: ¥76.2 million (a decrease of ¥1.7 million from the previous year)

Geographic Distribution

The seven prefectures of Tokyo, Osaka, Kanagawa, Chiba, Saitama, Aichi, and Hyōgo accounted for approximately 70% of all specialized fraud cases in 2021.

Public Vigilance Urged

The National Police Agency has urged vigilance among the public, particularly the elderly, to protect themselves against these types of financial crimes.