The Japanese government is weighing a significant crackdown on fraudulent activities involving illicit bank accounts and anonymous communication tools, following a sharp rise in social media-driven investment scams and telecom fraud.
According to The Mainchi, these efforts come in response to a growing number of fraud cases exploiting illicitly traded financial accounts. In 2024, 4,513 such cases were uncovered under the Act on Prevention of Transfer of Criminal Proceeds—a 30% increase from 2023 and nearly double the figure recorded in 2019. Criminals have increasingly used these accounts to launder money obtained from victims through so-called “special fraud” schemes, which include deceptive phone calls and social media-based investment fraud.
Currently, individuals caught buying or selling financial accounts face up to one year in prison or fines of up to 1m yen ($7,100). If prosecuted under the more severe Act on Punishment of Organized Crimes and Control of Proceeds of Crime, the penalties rise significantly, with prison terms of up to seven years and fines reaching 3m yen (about $21,300).
In response, Japan’s National Police Agency is considering amendments to the criminal proceeds law, engaging with legal experts and relevant ministries to determine the necessary legal reforms.
Further proposals target the telecommunications sector. The government plans to revise guidelines to potentially mandate the retention of phone and app communication histories by telecom operators. This follows multiple instances where law enforcement agencies were unable to access records in time to trace fraud networks.
To curb abuse of data-only SIM cards—often used in anonymous scams—the government may introduce mandatory identity verification during SIM contract registration. The move is intended to close loopholes in communication technologies that facilitate fraud.
Authorities are also exploring the legalisation of new investigation tactics, such as using undercover agents with fictitious names to apply for so-called “yami baito” or “dark gig” jobs that recruit online accomplices in financial crimes. This tactic aims to disrupt the money flow within criminal organisations by tracking activities from within.
A further priority is creating an industry-wide framework that enables financial institutions to share data on accounts identified as being involved in fraud, allowing these accounts to be frozen more quickly.
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