Phishing Scams Exploit Japan’s Digital Currencies, Fraud Cases Surge

The latest development is that the report shows that digital currencies promoted by Japanese local governments are phishing scams used in reward programs to steal funds.

Detectives in Toyonaka City have arrested seven Vietnamese who allegedly used credit card information obtained through impersonation to obtain “machikane points,” a currency in Toyonaka City. The suspects are believed to have abused the currency rewards programme under which individuals are eligible for up to ¥2,500 for spending ¥50,000 (~$6,900) to make payments with the same credit card account. 

Surge In Digital Currency Use Raises Phishing Risks

Police VKM remained silent for some reason, butanoate that the group was able to receive fraudulent premiums for nearly half a million dollars only within two days; St. Petersburg plans to catch new accomplices.

Such types of fraud have been recorded in other areas with similar gimmicks, for instance, the Kumagaya in Saitama Prefecture, which tricks its residents into using Kuma Pay currency. Investigative research has found several municipalities across the country have also been attacked, though some have been slow to release information on the incidents.

The general uptake of digital currencies promoting local currencies has dramatically surged. Statistics from Senshu University indicate that the number of municipalities in the country that have issued these digital currencies has risen from 32 to 219 in 2023. However, recent such currencies are advised to be cautious because they are the favorite of phishing groups.

To this end, authorities are calling on local governments to increase identity checks and restrict credit card acceptance to those with the purchaser’s name on it. Still, some officials admit that preventing fraud related to phishing attacks is still rather difficult.