News On Japan

Online Gamers Caught in Fraud Scheme

TOKYO, Jul 01 (News On Japan) - Eleven users of online games operated by SEGA and Square Enix have been referred to prosecutors or arrested by Tokyo Metropolitan Police on suspicion of fraudulently obtaining in-game currency by using so-called "payment proxy" services.

According to investigators, between September 2022 and January 2023, four individuals, including a man in his 40s from Okinawa Prefecture, were arrested, while seven others from Kanagawa Prefecture were referred to prosecutors. The group is suspected of fraudulently acquiring a combined total of 23.5 million yen worth of game currency by pretending to have made legitimate payments in online games managed by SEGA and Square Enix.

The suspects had requested "payment proxy" services through websites that trade game items. These agents logged into the users' game accounts and manipulated the system by sending false payment information, thereby obtaining game currency illegitimately. The users reportedly paid the proxy agents a fee amounting to only a few percent of the actual item value.

Such police action against game users is highly unusual. SEGA is estimated to have suffered damages of around 1.3 billion yen, while Square Enix's losses are believed to be as high as 8.8 billion yen from similar schemes.

In August last year, a Chinese national operating as a proxy service agent was arrested for defrauding SEGA-run games. Police say that three of the eleven suspects had used this individual’s services.

Authorities believe more proxy operators may be involved and are continuing their investigation.

Source: TBS

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