Japan/Japanese Scammers – LINE App Investment Scams

Authors:
•  Rika Takebe, NPO Charms – Japanese Victim’s Assistance & Support Provider, SCARS Partner, Certified NLP coach, Business Coach & Consultant / MBA (Bond BBT) / Organizational Science Researcher
•  SCARS Editorial Team

The Sad Story of Scams in Japan & Japanese Scammers – LINE Investment Scams

SCARS Introduction to LINE App Scams

LINE, the ubiquitous messaging app in Japan, is more than just a platform for cat videos and sushi-gram updates. While it connects lives, it also harbors a dark underbelly: a fertile ground for scams targeting unsuspecting users. Understanding these deceptive tactics is crucial, for not only does it protect individuals but also sheds light on a complex digital ecosystem often shrouded in cultural nuances.

Common LINE App Scams

• Romance Frauds: These scams prey on loneliness and the desire for connection. Fake profiles, often portraying attractive men or women, lure victims into romantic relationships. Trust built over months leads to emotional manipulation and elaborate financial requests – sometimes disguised as “gifts” or “investments.”
• Fake Investment Schemes: Luring dreams of easy wealth, these scams promise exorbitant returns on dubious investments. Sophisticated websites and testimonials fabricated through social engineering mask the true intent: siphoning off unsuspecting victims’ savings.
• Phishing and Data Theft: Malicious links disguised as legitimate offers or urgent messages from authorities aim to steal sensitive information like login credentials or credit card details. This stolen data can be used for further fraud or sold on the dark web.
• Overcharge Scams: Exploiting Japan’s unique payment system – “kakin,” relying on phone bills for online transactions – these scams trick users into making unauthorized or overly expensive purchases. Hidden fees and unclear terms and conditions are used to exploit this system.

Cultural Factors at Play with LINE App Scams

Understanding the cultural context is key to demystifying these scams. The Japanese emphasis on politeness and avoiding conflict can make users hesitant to question suspicious messages or transactions. Additionally, societal pressure to conform and “fit in” can make victims reluctant to report scams for fear of judgment or shame.

Protecting Yourself from LINE App Scams

• Skepticism is key: Be wary of unsolicited messages, especially those promising exorbitant returns or instant gratification. Do your research, verify information independently, and don’t trust emotional appeals.
• Maintain digital hygiene: Use strong passwords, avoid clicking suspicious links, and keep your devices and apps updated with the latest security patches.
• Don’t rush into transactions: Take your time, scrutinize terms and conditions, and seek advice from trusted individuals or authorities before committing to any financial agreements.
• Speak up and report: Don’t let shame silence you. Report suspicious activity to LINE and relevant authorities like the National Consumer Affairs Center of Japan (NACCJ). Sharing your experience can help protect others.

Beyond LINE App Scams

The prevalence of LINE app scams speaks to a larger need for digital literacy and consumer protection in Japan. While individual vigilance remains crucial, addressing the systemic vulnerabilities and raising awareness through campaigns and educational initiatives can create a safer online environment for everyone.

Remember, navigating the digital world requires caution and informed action. By staying vigilant, understanding the cultural factors at play, and reporting suspicious activity, we can ensure that LINE remains a platform for connection and not deception.

LINE App Scams by Rika Takebe, NPO Charms

LINE in the Messaging App Market

LINE, while having a comparatively modest global presence, is a dominant messaging application in specific Asian markets, notably Japan, Indonesia, Taiwan, and Thailand. In 2021, it boasted 178 million active monthly users across these key markets, with Japan accounting for 92 million of these users, representing a staggering 88% of the adult population. Its widespread adoption in Japan has rendered it an essential tool for legitimate businesses, offering services ranging from news dissemination to e-wallet functions and online shopping facilitation.

The Rise of the LINE App in Facilitating Japanse Investment Scams

Despite its legitimate uses, LINE has also become a conduit for criminal activities, particularly in targeting Japanese-speaking citizens. Criminal organizations find it advantageous to use LINE over less familiar platforms like WhatsApp or Telegram for Japanese targets. Recent trends indicate an increase in relationship scams where scammers, often posing as foreigners, primarily communicate with victims via LINE, regardless of the initial contact platform.

Anatomy of the LINE Investment Workshop Scam

One of the prevalent fraudulent activities on LINE is the “LINE Investment Workshop Scam.” This scam typically begins in one of three ways: unsolicited addition to a LINE investment workshop group, social media advertisements or posts, or personal invitations via social media or dating apps. The scam follows a consistent pattern once the victim is in the group.

1. Introduction Phase: A female character, often using the image of a pretty young Asian woman, poses as an assistant, introducing a supposed Investment Expert with impressive credentials. The group, initially comprising over 80 people, quickly decreases as those aware of the scam leave.
2. False Testimonials and Authority Building: The Investment Expert is praised by attendees (scam accomplices) claiming previous successful interactions or financial gains. These fake endorsements bolster the lecturer’s credibility.
3. Engagement and Trust Building: The Investment Expert, often impersonating a notable figure such as a company executive or famous economist, gives professional-sounding discussions about the economy and investments. The assistant encourages adding the lecturer as a friend, transitioning to a more personalized scam setting.
4. Investment Promotion and Pressure: When the target is added to the Investment Expert’s new chat room, the Investment Expert and fake clients praise the investment opportunities, creating a bandwagon effect to lure the target into investing.
5. Investment and Loss: The victim is encouraged to install an investment app or visit a website, leading to substantial financial investments such as cryptocurrency, gold, or FX investment. Once a significant amount is invested, victims find themselves unable to withdraw their funds.

LINE App’s System Vulnerabilities

This scam exploits the LINE App’s feature allowing users to add friends and include them in groups without prior approval. The selection of targets isn’t necessarily sophisticated; it often involves random phone numbers.

Prevention and Cautionary Measures

For users, especially those in Japan, it is crucial to remain vigilant. Joining an unknown investment group on the LINE App is a significant red flag. Users should immediately exit such groups and exercise caution in their online interactions. Awareness and skepticism are key defenses against such scams.

Conclusion

NPO CHARMS stresses the importance of digital literacy and caution in online financial dealings for Japanese internet users. LINE, while a tool for seamless communication and business in Japan, also serves as a fertile ground for sophisticated investment scams. Educating the public about these risks and advocating for more robust security measures in such apps is essential in mitigating these threats.

Article References

• NPO Charms – Supporting Japanese Scam Victims
• Line Revenue and Usage Statistics (2023) Jul 18 2023 https://www.businessofapps.com/data/line-statistics/
• Most Popular Messaging Apps Worldwide 2023 Dec 11 2023 https://www.similarweb.com/blog/research/market-research/worldwide-messaging-apps/
• Unsolicited Addition of LINE Investment group – why increasing rapidly? (28th June
  2023） NHK News (Japanese language) https://www3.nhk.or.jp/news/html/20230628/k10014111341000.html

Appendix

Screenshots of a LINE App investment group and translation of the assistant’s text/comments.

How this Group of Japanese Scammers Operate

IMAGE 1: Assistant Rei Sato

Good evening everyone. I’m Rei Sato, Yoshida Sensei’s assistant. By adding friends to Yoshida Sensei’s LINE, you can ask him questions about investing. Later, Professor Yoshida will invite you to join the investment group. First of all, please note that this group will be disbanded once everyone has joined the investment group.

IMAGE 2: Assistant Satsuki

Instructor for this group (analyst): Janis, CFA certified securities analyst in the United States Administrative person in charge of this group (assistant): Assistant Satsuki, an international student specializing in finance.

IMAGE 3: About this Group

Distribution contents and services of this group:

• Morning market information will be distributed around 9:00 am on Japanese stock market trading days.
• Every Monday afternoon (Japan time), we will share regular stock knowledge.
• Irregularly recommend blue-chip stocks and bullish stocks

To do.

• Depending on market conditions, major events may occur.

Decode news/information (e.g. major announcements from FOMC/CPI, etc.).

• Depending on the situation of this group member. So, I might explore other types of investments (FX, etc.).
•  Every day (trading day), we will summarize the distribution contents and consultations for the day.
•  Every Friday afternoon (Japan time), we will summarize this week’s distribution contents and consultations (summary of this week’s market conditions, this week’s stock diagnosis, tracking recommended stocks, etc.).
• If necessary, we will provide you with position analysis services free of charge.

IMAGE 4: The Goals of this Group:

1. We will decipher financial knowledge that even beginners can understand in an easy-to-understand, interesting, and unbiased manner.
2. We will stimulate interest in investing among beginners and amateurs, and support investment management for those with experience in stock trading.
3. We create win-win relationships with people who recognize our abilities.
4. We will convey technical knowledge to customers in win-win relationships and improve their investment capabilities.
5. Cultivate the Japanese market and find new customers.

IMAGE 5: Prohibitions of this Group

1. Group members other than the person in charge are prohibited from speaking during the daily morning distribution time.
2. Knowledge Share PDF files are our original content and are prohibited for commercial use only when shared for free within this group.
3. When a group member invites an acquaintance to the group or leaves the group, only analysts and assistants can do this. It is prohibited for other members to invite or withdraw from membership without permission.

More:

• Japanese Lawyer Arrested For Money Recovery Fraud – 2023 (scamsnow.com)
• In Japan – Secondary Victimization by Law Firms (scamsnow.com)
• Scam Victim Commits Crimes For Their Scammers (scamsnow.com)
• Japanese Lawyers Defrauding Scam Victims – A Growing Problem – 2023 (romancescamsnow.com)
• SCARS™ SCAM NEWS: Japanese Woman Age 66 Victimized In ‘International Romance Fraud’ Of ¥100 million (US$896,260) (romancescamsnow.com)
• Battleground Japan – NHK Docudrama Reveals Telephone Scam Tactics – SCARS™ SCAM NEWS (romancescamsnow.com)
• Japan Is The New Battleground For The War On Romance Scams – SCARS™ SCAM NEWS (romancescamsnow.com)
• Japan – The Romance Scammer’s Heaven – A SCARS™ Guest Editorial By Catherine Saori Usui (romancescamsnow.com)
• The Value of Slowness (scamsnow.com)

SCARS Resources:

• For New Victims of Relationship Scams newvictim.AgainstScams.org
• Subscribe to SCARS Newsletter newsletter.againstscams.org
• Sign up for SCARS professional support & recovery groups, visit support.AgainstScams.org
• Find competent trauma counselors or therapists, visit counseling.AgainstScams.org
• Become a SCARS Member and get free counseling benefits, visit membership.AgainstScams.org
• Report each and every crime, learn how to at reporting.AgainstScams.org
• Learn more about Scams & Scammers at RomanceScamsNOW.com and ScamsNOW.com
• Global Cyber Alliance ACT Cybersecurity Tool Website: Actionable Cybersecurity Tools (ACT) (globalcyberalliance.org)
• Self-Help Books for Scam Victims are at shop.AgainstScams.org
• Donate to SCARS and help us help others at donate.AgainstScams.org
• Worldwide Crisis Hotlines: International Suicide Hotlines – OpenCounseling : OpenCounseling
• Campaign To End Scam Victim Blaming – 2024 (scamsnow.com)

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