There has been a recent surge in investment fraud cases where victims are deceived into sending money to individuals they meet through social media. Scammers often create profiles that appear wealthy or use attractive photos to lure victims into fraudulent investment schemes.
Don’t Fall for Sweet Promises
Typically, the scammers introduce new and complex investment methods, such as cryptocurrencies and foreign securities, to skillfully lure victims. In many cases, the money is never actually invested in cryptocurrency or securities; the scammer simply disappears with all the funds.
Be careful of phrases like “guaranteed profits” or “principal guaranteed.” If it sounds too good to be true, it probably is. It is crucial to understand that promising a return of principal investment to raise funds is illegal in Japan.
Sending money to someone you’ve only met online is incredibly risky, and recovering your funds can be extremely difficult. Even with legal counsel, retrieving your lost money is very difficult and often impossible.
Beware of Secondary Victimization by Lawyers
While ethical lawyers will clearly explain the risks involved and the low probability of recovering your money, some unscrupulous lawyers may exploit your situation. They might give you false hope and charge exorbitant fees while doing very little to help. They might make token gestures, such as sending faxes to investigative authorities or banks, and claim they have frozen the scammer’s account. However, by that time, the stolen funds are usually long gone.
Be cautious of law firms that heavily advertise their services for recovering investment fraud losses, as some may be scams themselves.
Warning message from Kanagawa Bar Association (Japanese only)
https://www.kanaben.or.jp/news/info/2024/post-412.html
What to Do if You Are a Victim of Investment Fraud
- Contact the police.
- Contact the bank where you sent the money.
- If you need legal advice, consult your local bar association and ask if they have a consumer consultation service.
Helpful Resources:
The Japanese Bankers Association:
https://www.zenginkyo.or.jp/en/
Provides information and contact details for reporting financial crimes.
Local bar association:
https://www.nichibenren.or.jp/en/legalinfo/legal.html
Each local bar association has a designated complaints desk to handle complaints about its member lawyers. This complaint desk is called Shimin Madoguchi.
Protect Yourself from Investment Fraud:
- Don’t readily engage with investment offers from people you’ve just met online.
- Don’t be fooled by promises of “guaranteed profits” or “principal guaranteed.”
- If you’re unsure, consult with your family or close friends.
- Utilize consultation services provided by the police or the local bar association.
Our Law Firm Does Not Handle Investment Fraud Cases
We do not handle these types of cases, and even if you consult with us, we can only offer the same advice as above. Therefore, we generally do not accept consultations regarding investment fraud. If you need legal advice, please contact the local bar association.
