Investment Scam Losses Continue To Rise In Japan – More Than 50% Year Over Year
The Rate of Fake Investment Scam Victimization is Growing at a rate of over 50% per year!
An Investment Scam Victim’s Story
Authors:
• SCARS Editorial Team – Society of Citizens Against Relationship Scams Inc.
• Portions YOL
About This Article
The surge in investment scams worldwide, but particularly in Japan, including fake crypto and regular investment schemes, reflects a global trend of scammers adapting their tactics to target unsuspecting victims.
With losses totaling in the tens of millions of yen, victims like Mitsuyoshi Yamamoto are left devastated by the allure of promised profits and sophisticated scam techniques. These scams often involve impersonating famous investors on social media platforms, enticing victims with promises of high returns and minimal risk.
The Fukuoka Prefectural Police reported a significant increase in financial losses attributed to such scams, urging the public to exercise caution and skepticism when approached with investment opportunities, especially from unfamiliar sources.
This serves as a stark reminder that vigilance, thorough research, and skepticism are crucial in protecting oneself from falling victim to fake investment scams, regardless of the sophistication of the fraudulent websites and applications employed by scammers.
Scammers are Adapting their Investment Scam Models and turning toward Normal/Regular Investments now too in Japan!
In Japan Fake Crypto and Regular Investment Scam models are rising fast – just like everywhere else!
Please note: It is the policy of SCARS to discontinue the use of the term ‘Pig Butchering Scam’ due to its very derogatory nature, instead we use ‘Crypto Investment Scam.’ We encourage everyone to stop using derogatory terms that are distressful to scam victims.
Here is one Japanese Investment Scam Victim’s Story
Tens of millions of yen in damage … Rapid increase in “financial product fraud” by famous investors on SNS in Japan is alarming!
“I only focused on the profit margin”
The damage caused by fake phone scams does not stop. The latest losses amount (preliminary figures) for February compiled by the Fukuoka Prefectural Police was about 500 million yen as of the 25th of the same year (of course this is just what is reported.) The amount of losses in a single month has already been the worst ever, and it has been climbing for three consecutive months since December last year.
In particular, there has been a sharp increase in the number of “financial product scams” that impersonate famous investors on social media. A man in his 70s in the prefecture who was a victim of tens of millions of yen in this scam talked about the methods and his state of mind. (Mitsuyoshi Yamamoto):
“I was only focused on the profit margin, and I was deceived well.” The man told reporters at the Fukuoka Prefectural Police headquarters in late February.
According to the investment scam victim, he found an ad on Facebook last winter with a photo of a famous investor and clicked on it. The three impersonated investors began to send information on LINE – such as trends in gold and U.S. stocks, the account to be transferred, and the time of payment.
When the victim registered on the designated website, a chart of the investment management status was displayed on the screen, and 15~20% was profitable.
“The screen was beautiful, and it was almost the same as that of a brokerage company,” he said.
The man sent tens of millions of yen in about one month until the end of December last year. The transfer destination was the account of multiple individuals and corporations, but he did not feel suspicious.
After that, when he made a transfer to the transfer address, and it bounced, it was an obvious scam.
“When I felt uncomfortable with the attitude of the other party who pressured me to send money, I checked with the bank, and it turned out that it was an account that had been suspended from trading, and I realized that it was a scam.” The man regretted, “I didn’t check (whether it was a legitimate vendor)” carefully.
50% Increase in Investment Scam Victims Year over Year in Japan
According to the Fukuoka Prefectural Police, the amount of financial losses caused by these fake scams during February 1~25 this year was 494 million yen, which was significantly higher than in December (287 million yen) and January (288 million yen) last year. From January through to February 25, it amounted to 782 million yen, which exceeded a 50% increase from last year’s (1.331 billion yen).
Ninety percent of the financial losses in February were due to financial product fraud (464 million yen), and the average amount per case was 17 million yen (US$112,365).
There are many ways to misuse and impersonate the names and photos of famous investors on social networking sites to advertise “absolutely profitable” and “principal guaranteed”, and invite people who contact them to chat groups to make them trust. In some cases, personal accounts are designated as the recipient of the money.
The Prefectural Police’s Life Safety and General Affairs Division said, “The perpetrators seem to be taking advantage of the investment boom, and you may think that you don’t want to miss the ride, but please be careful about investment stories from people you don’t know.”
Source for the above: YOL / Courtesy of our SCARS Partner NPO Charms
Translated from Japanese
This is Happening Worldwide!
This is not unique to Japan, it is happening worldwide and anyone thinking of investing based upon what some famous person or celebrity says should STOP! The odds that is a scam, this means that right now, no one can be trusted online. Only follow the most trusted news sources, but even that is no guarantee since scammers recently duplicated the Malaysian STAR website to insert scams into the news stories to lure in new victims.
Tips to Avoid Fake Investment Scams
As scammers become increasingly sophisticated in their tactics, individuals need to always be vigilant and exercise caution when considering investment opportunities.
Here are several strategies to help avoid falling victim to fake investment scams, even in the face of well-designed fraudulent websites and applications:
- Research and Due Diligence: Before making any investment, conduct thorough research on the company or platform offering the investment opportunity. Look for reviews, check the company’s registration and licensing status with relevant regulatory authorities, and verify the legitimacy of their claims. If you cannot verify it, don’t trust it.
- Watch for Red Flags: Be wary of investment opportunities that promise unusually high returns with little to no risk. Additionally, watch out for pressure tactics, such as limited-time offers or claims of exclusive deals, which are common tactics used by scammers to rush individuals into making hasty decisions. At the first hint of a problem walk away.
- Verify Credentials: Verify the credentials of financial professionals or advisors associated with the investment opportunity. Legitimate professionals should be licensed and registered with relevant regulatory bodies. Verify with the government only, don’t trust anyone online.
- Use Trusted Platforms: Stick to well-known and reputable investment platforms or brokerages with a track record of reliability and security. Be cautious of investing through unfamiliar or unregulated platforms, especially those that operate solely online. However, be careful since scammers can duplicate and impersonate them too.
- Scrutinize Communication: Be skeptical of unsolicited communication, especially cold calls, emails, or social media messages promoting investment opportunities. Scammers often use these channels to reach potential victims. Anyone who contacts you first is going to be a scammer.
- Secure Transactions: Ensure that any transactions or investments are conducted through secure and reputable channels. Avoid sending money or personal information through unsecured methods, such as wire transfers or cryptocurrency transactions.
- Seek Independent Advice: Consider seeking advice from independent financial advisors or trusted professionals who can provide unbiased guidance on investment decisions. Talk to local financial professionals first.
- Don’t Trust Your Instincts: If something seems too good to be true or raises suspicions, trust your instincts and proceed with caution. Take the time to thoroughly vet any investment opportunity before committing funds. Remember that your cognitive biases cannot be trusted. Never make fast decisions.
- Stay Informed: Stay informed about common investment scams and fraud schemes by following updates from reputable sources, such as financial regulators or consumer protection agencies. Knowledge is a powerful tool in protecting yourself from potential scams. Keep reading SCARS websites, such as ScamsNOW.com and RomanceScamsNOW.com, and major news sources for scam news. Do search for anyone and everything, but this is no guarantee that someone or something can be trusted – the absence of evidence is no guarantee of trustworthiness.
By remaining vigilant, conducting thorough research, and exercising caution, anyone can reduce the risk of falling victim to fake investment scams, even in the face of increasingly sophisticated tactics used by scammers.
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More Japan Scam Related Information:
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- Japan – Japanese Scammers – LINE App Investment Scams – 2023 (scamsnow.com)
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- Scam Victim Commits Crimes For Their Scammers (scamsnow.com)
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SCARS Resources:
- Getting Started: ScamVictimsSupport.org
- FREE enrollment in the SCARS Institute training programs for scam victims SCARSeducation.org
- For New Victims of Relationship Scams newvictim.AgainstScams.org
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- Learn more about Scams & Scammers at RomanceScamsNOW.com and ScamsNOW.com
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- Self-Help Books for Scam Victims are at shop.AgainstScams.org
- Worldwide Crisis Hotlines: International Suicide Hotlines – OpenCounseling : OpenCounseling
- Campaign To End Scam Victim Blaming – 2024 (scamsnow.com)
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