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 Digital currencies controlled by local governments in Japan are increasingly becoming targets for fraudsters, prompting investigative agencies to urge the implementation of more solid security measures.
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<a style="color: #0000ff;" href="https://www.japantimes.co.jp/news/2024/11/21/japan/crime-legal/digital-currencies-fraud/" rel="noopener noreferrer nofollow">According to a report</a> by the Japan Times, Police in Osaka recently apprehended seven Vietnamese nationals for allegedly using stolen credit card details to fraudulently acquire “machikane points,” a regional digital currency in Toyonaka City. The suspects exploited the currency’s premium reward system, which provides up to ¥2,500 (about $345) for purchases of ¥50,000 (~$6,900) by using the same credit card across multiple accounts.
Investigators estimate the group fraudulently obtained nearly half a million dollars in premiums within two days. Authorities suspect other individuals may be involved, as similar scams have emerged in places like Kumagaya and Saitama, where the local Kuma Pay currency was targeted. Several municipalities have reported similar incidents, though some have been reluctant to provide details.
The popularity of digital regional currencies, aimed at boosting local economies, has grown significantly in recent years. According to the report, Senshu University data reveals municipalities issuing digital regional currencies surged from 32 in 2019 to 219 in 2023. However, experts warn that phishing groups are particularly drawn to newly introduced digital currencies.
Authorities are urging municipalities to enhance identity verification protocols and restrict credit card use to those registered in the purchaser’s name. However, some officials argue that preventing phishing-related theft entirely is challenging.
Meanwhile, Japanese authorities have been<a style="color: #0000ff;" href="https://defi-planet.com/2024/10/japanese-police-arrest-ringeader-of-crime-group-linked-to-100-million-yen-scam-and-monero-laundering/" rel="noopener noreferrer nofollow"> intensifying</a> efforts to crack down on fraud, with Kobayashi’s arrest marking a significant step in addressing&nbsp;
phishing-related credit card schemes targeting platforms like Mercari. The group allegedly used stolen credit card details from phishing attacks to execute 42 fake transactions on Mercari, defrauding the platform of 2.75 million yen between June and July 2021. Investigators believe they carried out around 900 similar transactions between June 2021 and January 2022.
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The post <a href="https://defi-planet.com/2024/11/fraudsters-target-japans-local-digital-currencies-prompting-security-concerns/" rel="noopener noreferrer nofollow">Fraudsters Target Japan’s Local Digital Currencies, Prompting Security Concerns</a> appeared first on <a href="https://defi-planet.com" rel="noopener noreferrer nofollow">DeFi Planet</a>.

Fraudsters Target Japan’s Local Digital Currencies, Prompting Security Concerns

DeFi Planet

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