TOKYO, May 13 (News On Japan) - A growing number of credit card fraud cases in Japan has been linked to a shadowy underground labor network, where Chinese nationals are suspected of stealing Japanese consumers' card data.
Last July, a man in his 40s living in Nagoya, referred to as A, fell victim to a phishing scam that compromised his credit card information. A deceptive message prompted him to click a suspicious link and enter his card details. It was only after checking the sender's email that he realized he had been tricked. A immediately contacted his card company and had his card deactivated.
However, fraudulent charges continued to appear even after he received a new card. Despite never using the replacement, unauthorized payments had already been processed. Records showed that fraudulent use began two days after the initial deactivation. The transactions—22 in total, each under 10,000 yen—amounted to around 140,000 yen over a month.
The key vulnerability was the smartphone tap-to-pay feature. When card information is stored in a smartphone, it can be used for purchases without immediate verification, particularly for transactions under a certain amount. In some cases, this tap function remains active for a short time even after the card is deactivated—an exploit fraudsters have begun to take advantage of.
In March, the issuer of Aeon credit cards reported a 9.9 billion yen special loss due to similar fraudulent activity.
One group under scrutiny is a Chinese network orchestrating “black market part-time jobs.” In a 2023 case in Suita, Osaka Prefecture, a Chinese national was arrested for using stolen information to purchase heated tobacco products at a convenience store. Authorities seized 26 smartphones, each containing card data for three Japanese individuals.
The suspect, allegedly recruited for a cigarette-buying proxy job, had been instructed by a Chinese group operating through social media. The stolen goods were reportedly intended for resale in China.
These jobs are often advertised on Chinese social media platforms like RED, known in Chinese as “Xiaohongshu,” where users post photos and videos. A reporter contacted one such recruiter offering “4,000 yen per hour” and was told the job involved buying items at nearby convenience stores.
The items in question were prepaid cards. Buying 20,000 yen worth promised a 4,000 yen reward; 50,000 yen would yield 15,000 yen. After agreeing, the reporter was told to switch to another social messaging app and go to a convenience store.
Once at the store, the reporter was asked to send a photo of a multi-function copy machine. They were then given instructions to use the machine to buy prepaid e-money cards. The interaction suggested a high-reward job with minimal effort—but was it legitimate?
A Chinese-speaking reporter then called the recruiter. The person explained that the purchased goods would be picked up by a driver in exchange for cash. When asked whether the job was legal, the call was abruptly disconnected.
Experts familiar with these operations say the pattern is clear: start with seemingly legal jobs and gradually pull workers into criminal activity. One specialist noted that international students are often approached and advised, "If you're unsure about its legality, don’t get involved."
Young people in need of money are especially vulnerable. These schemes often use the internet and social media to reach them. Many of the groups behind these operations are reportedly based in Southeast Asia, where enforcement is lax and the risk of prosecution is low.
Some experts believe Japan is seen as an easy target due to weak awareness and preventative measures regarding tech-based scams and fraud. This perception has emboldened groups to focus their activities on Japanese consumers.
Source: MBS
