Japanese police warn of investment scams amid stock boom
At a time when the Nikkei 225 stock average is hitting record highs, Japanese police are warning of online investment scams, particularly fake websites that display large profits and encourage additional investments.
"There are probably victims who are still unaware that they have been cheated," a senior police official said.
According to Tokyo's Metropolitan Police Department and other sources, losses from such online investment scams surged 55.5 billion yen from the previous year to total a record 182.7 billion yen in 2025.
In most cases, people fall victim to fraud through online advertisements using the names of celebrities and direct messages on social media. They are then introduced to trading apps and websites.
After starting with small-lot investments, victims are shown fake balances with apparent gains and advised to invest more.
In some cases, victims are induced to develop romantic feelings and do not soon realise that they are being cheated.
In October 2024, a man in his 50s living in Tokyo received a direct message on Facebook from someone claiming to be a foreign woman. After exchanging messages, he was told that she had earned tens of millions of yen a day through investments and that she hoped to share her assets through marriage.
As told by the scammer, the man installed a crypto asset transaction app and was introduced to a website for checking his asset balance. He transferred money to a designated account to buy crypto assets for 500,000 yen.
After a while, he saw a profit from the investment on the website and invested an additional 13 million yen. His balance exceeded 100 million yen.
When he tried to withdraw money from the account, he was told that 25 % of the withdrawn amount would be required as a tax, and he deposited about 15 million yen in total. However, he could not withdraw money and finally realised that he had been defrauded.
A senior police investigator pointed to differences between such cases and phone scams, saying that victims act proactively after having an interest in investment opportunities or scammers of the opposite sex.
Another police official noted that people with less knowledge of and experience in investments have started to make investments following the Japanese government's call for a shift from savings to investments and the introduction of the Nippon Individual Savings Account system.
"To avoid scams, it's necessary to nurture money literacy, including financial knowledge and the ability to make appropriate decisions," the official added.
[Copyright The Jiji Press, Ltd.]
