Financial Fraud Epidemic Sweeps Japan: Scammers Rake in Millions

A staggering 200 million dollars has been stolen this year alone through a sophisticated scam in which scammers trick people into transferring funds to bank accounts bought on the black market.

The Scam Unfolds

The fraudsters have exploited foreigners facing financial hardship, with many accounts opened under non-Japanese names. According to police, approximately 1,600 suspect accounts have been identified as of the end of September, with 20 percent held in apparent foreigner’s names.

Most Common Names and Origins

The most common name is Nguyen, followed by Tran and Jang, all of Vietnamese or Korean origin. The accounts were opened across Japan, from Hokkaido to Kagoshima Prefecture.

How the Scam Works

The scam typically starts with a telephone call, where the victim is tricked into believing they are due a refund or need to make a payment. In one case, a 60-year-old woman in Osaka was told by an impersonator claiming to be an employee of the city office that she was eligible for a health insurance refund. She transferred $700 to a designated account, only realizing later it was a scam.

Black Market Trading

Police suspect that many of these accounts were traded on a black market for bank accounts, with foreign students and trainees selling them when they return to their home countries. An uptick in the number of suspect accounts held in foreigners’ names is attributed to financial pressures caused by the pandemic.

Non-Profit Organization’s Plea

A non-profit organization, Japan Vietnam Mutual Support, has called on people to stop selling accounts, citing cases where desperate individuals are forced into crime due to poverty and lack of job opportunities. “When I asked her if she could buy a plane ticket, she said she could, and went away saying ‘just wait a minute.’ When she returned, I asked her where she had been, and she said, ‘I went to Tokyo’s Okubo district to sell my account,’” recalled the organization’s president, Yoshimizu Jiho.

Online Sales

Online social networking groups have also been used to sell bank accounts, with prices ranging from hundreds of dollars. The police believe that most suspect accounts were traded online. “Many foreigners lost their jobs, money, and homes due to the pandemic,” says Yoshimizu. “I don’t think people are aware that it’s a crime to buy and sell accounts.”

Avoiding Scams

To avoid falling victim to this scam, police advise people to check the name and account number on the screen before making a transfer at an ATM. They also urge anyone who notices suspicious activity to consult with the authorities immediately.

Expert Warning

As the financial fraud epidemic continues to spread, experts warn that it is essential for individuals to be aware of the risks involved in buying and selling accounts. “I think the best thing we can do is help to improve those situations so that they don’t have to buy and sell accounts,” said a Vietnamese student who spoke to the media.

Prevention is Key

To prevent falling victim to this scam, it’s crucial for individuals to be aware of the risks involved in buying and selling accounts. By taking necessary precautions and staying informed, we can help put an end to this financial fraud epidemic.