Japanese lose record $835M to romance and investment scams in 2024

Romance scams accounted for 3,784 cases, an increase of 2,209 cases from the previous year, while investment fraud surged to 6,380 cases, up by 4,109 cases, Kyodo News reported, citing the NPA's report.

Crimes classified as "special fraud" - which include scammers impersonating police officers to extort money - also saw a significant increase, with total losses reaching 72.2 billion yen ($476 million), a 59.4% jump from 2023.

The number of special fraud cases rose 10.2% year-over-year, reaching 20,987 incidents in 2024. In about 80% of these cases, victims were contacted by phone, with many calls originating from overseas.

Authorities noted in the report that online banking accounts played a key role in facilitating these scams, as they allow larger transactions compared to ATMs and are more difficult to trace.

According to the Japan Times, the report said criminal networks known as tokuryū (quasi-gangsters) have increasingly used the internet for illegal activities, particularly scams. These groups operate anonymously and with loose structures, making them harder to track.

One of their key tactics is recruiting criminals online through vague job advertisements that promise quick and easy money without disclosing the actual nature of the work. Once applicants share their personal information, the groups blackmail them into participating in illegal activities.

Tokuryū have also been linked to burglaries, with authorities reporting a surge in such crimes since August despite overall crime levels remaining consistent with the previous year.

Japanese police advise the public to be cautious of individuals pressuring them to open or use online banking accounts. Financial institutions have also been urged to enhance fraud monitoring systems to detect suspicious transactions.

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