Investment and Romance Fraud Cases Triple in First Eight Months of Year
The National Police Agency has reported a staggering increase in investment and romance fraud cases in the first eight months of this year, with incidents more than tripling compared to the same period last year. This alarming trend has prompted authorities to issue a strong warning and call for increased public awareness regarding these deceptive schemes.
During the first eight months of this year, police received 6,868 reports of fraud cases, with total losses nearing ¥88 billion (around $600 million). This represents a significant rise compared to the 2,008 cases and ¥21.1 billion reported during the same period last year, underscoring how rapidly these scams are growing.
In cases of investment fraud, scammers often pose as expert investors or well-known celebrities, building a façade of trust that lures victims into investing their money. They utilize various platforms, primarily social media and messaging apps, to reach potential victims. The report indicates that online investment fraud has seen an unprecedented increase, quadrupling in frequency, with losses reaching ¥64.1 billion.
Similarly, romance scams, where fraudsters connect with victims through dating apps, have more than doubled, leading to losses of ¥23.6 billion. These scammers often manipulate emotions to gain trust, eventually coaxing victims into sending money under false pretenses.
The majority of these scams have been perpetrated via the Line messaging app, typically after initial contact was made through platforms like Facebook or Instagram. Scammers specializing in investment fraud commonly engage victims through targeted banner advertisements and follow up with direct messaging once a victim shows interest. For romance scams, approximately 80% of interactions begin with direct messaging.
Victims primarily use bank transfers to send money to these fraudsters. While many victims report losses of ¥5 million or less, there are cases where individuals have lost over ¥100 million, with 87 reported instances of such significant financial losses.
As authorities work to address this growing issue, they have apprehended 53 suspects connected to these fraudulent schemes. One notable case involved a 25-year-old scammer known as “Sugar Baby Riri,” who was sentenced to nine years in prison and fined ¥8 million for defrauding three men out of ¥156 million.
The surge in investment fraud has raised urgent calls for more robust protective measures. Billionaire Yusaku Maezawa, founder of the online fashion retail site Zozotown, has publicly urged the ruling Liberal Democratic Party to take decisive action against these scams.
Manabu Sakai, chairman of the National Public Safety Commission, emphasized the involvement of what are known as tokuryū criminals, who thrive on anonymity and exploit weaknesses in the current system. He assured the public that the government is dedicated to investigating these cases thoroughly and implementing effective preventive measures.
