The Rising Wave of Fraud in Japan: A Detailed Look at its History, Present, and Future

torinaga11
Jun 17
4 min read

Japan is often recognized as a nation of low crime, strong policing, and deep-rooted traditions of honesty and trust. However, fraud — particularly specialized fraud — has become a growing and persistent problem in Japanese society. From phone fraud to cybercrime and phishing attacks, fraud is challenging both the financial stability of companies and the daily lives of ordinary people.

A Brief History of Fraud in Japan

To appreciate the current fraud climate, it's helpful to view it through a historical lens:

Edo Period (1603–1868): During this era, fraud was predominantly small-scale — involving fake weights and measures in commerce or swapping lower grade products for higher grade ones.
Meiji Restoration (1868–1912): As Japan opened its borders and modernized, fraud schemes grew more sophisticated alongside its financial institutions. Paper currencies, stocks, and certificates opened a window for forgers and fraudsters to exploit.
Post-War Period (1950s–1990s): The Japanese economic boom — a period of unprecedented growth — also saw a rise in financial fraud cases, from real estate fraud to insider trading and political bribery.
2000s Onward: The advent of the internet, smartphones, and online banking opened a new era of fraud — phishing emails, phone fraud (such as ore-ore “it’s me”) phone calls, romance fraud, and sophisticated cyber crime rings.

Current Trends in Japanese Fraud (2020–2024)

Today, fraud in Japan is more sophisticated and pervasive than ever. Here are some key trends shaping the fraud landscape:

Specialized phone fraud (Ore-Ore or "It’s Me" fraud) This scam typically involves fraudsters phone-calling elderly people, pretending to be a family member in trouble. The scammer requests an urgent transfer of funds, tricking the victim into believing their grandchild or son is stranded or in danger.

Investment and romance frauds on social media Scammers use messaging apps, dating sites, and social media platforms to form relationships and manipulate their victims into sending large sums of money under false promises of marriage or high-risk “investments.”

Cybercrime and phishing attacks With the rise of smartphones and online banking, phishing messages and fake login sites designed to steal credentials have become a huge problem in Japan. According to the National Police Agency, phishing cases surged by nearly 60% in 2023.

Business fraud and insider schemes Some fraud cases are more sophisticated and internal — involving embezzling funds, cooking the books, or manipulating transactions from within companies. The 2011 Olympus scandal is a dramatic example — where nearly $1.7 billion was hidden from investors through fraud and financial irregularities.

Numbers That Tell the Story

Here are a few key statistics to underscore the scale of fraud in Japan:

58.6% increase in specialized fraud cases in 2024, reflecting growing vulnerability, especially amongst seniors.
About 65% of fraud victims are 65 or older, a demographic that is less proficient with technology and more prone to phone fraud and phishing attacks.

Total financial losses from fraud exceeded 71.8 billion yen ($500 million) in 2024, nearly a 60% rise from the previous year.
Online fraud, phishing, and phone fraud collectively make up over 80% of all fraud cases in Japan.

Projections for the Future (2025–2030)

Looking forward, the outlook for fraud in Japan suggests a further increase in cases and financial losses. Here are a few key projections:

A growing elderly population — 30% of Japanese will be 65 or over by 2030 — makes phone fraud and phishing attacks more lucrative for fraudsters.

Higher smartphone penetration and a move toward a cashless society — while convenient, this will expose more people to cyber-fraud.

AI-assisted fraud — deepfake phone calls and messages, automated phishing campaigns, and sophisticated malware attacks will become more prevalent.

Business fraud will become more sophisticated — companies will need stronger internal controls and oversight mechanisms to combat fraud from within.

How Japan Is Combating Fraud

To respond to this growing challenge, Japanese authorities and businesses are employing a range of strategies:

Public education campaigns — The National Police Agency regularly publishes fraud reports, leaflets, and video messages to raise awareness.

Enhanced policing and investigations — Specialized fraud divisions have been set up within the police force to pursue suspects and dismantle fraud rings.

Tech companies’ role — Banks, phone companies, and social media platforms are developing fraud-detection algorithms and blocking suspicious transactions in real time.

Legislation and penalties — Japanese lawmakers have amended fraud-related laws to raise penalties and broaden investigative powers against cyber crime and phone fraud.

Real Cases and Stories

Case 1: The “It’s Me” phone scam A 79-year-old woman in Saitama received a phone call from someone pretending to be her grandson in trouble. The fraudster insisted that “I need 3 million yen immediately to resolve an accident.” Panicked, the woman wired the funds directly, losing her life savings.

Case 2: The romance scam A Japanese woman in her 60s fell for a man who presented himself online as a successful European entrepreneur. Over 6 months, she transferred nearly 20 million yen to him for “new business ventures”—until the man suddenly cut all contact and disappeared.

Case 3: The corporate fraud (Olympus scandal) In 2011, the Japanese optical equipment giant Olympus was at the center of a huge scandal when it was revealed to have hidden $1.7 billion in losses for years through questionable transactions and payments. The scandal led to the dismissal of the company's president and a dramatic shake-up in corporate governance practices in Japan.

Final Thoughts — Staying Vigilant in a Digital Age

As fraud evolves alongside technology, vigilance — both by individuals and institutions — is more important than ever. Japanese society must collectively pursue education, strong policing, and responsible technology use to stay a step ahead of fraudsters.

Summary:

History: From simple fraud in the Edo period to sophisticated phone and cyber fraud today.
Current trends: Rising phone fraud, phishing, romance fraud, and internal fraud.
Numbers: Loss exceeded 71.8 billion yen in 2024; 65% of victims are elderly.
Projections: An uptick in fraud cases, greater use of deepfake and automated attacks.
Countermeasures: Policing, education, technology, and legislation.