News On Japan

Why Cambodia's Fraud Networks Target Japanese

TOKYO - A series of arrests involving Japanese nationals overseas is drawing renewed attention to the expansion of special fraud rings, with on-the-ground reporting in Cambodia revealing the presence of hidden power brokers whose influence is believed to extend into the country’s political establishment. As scam groups establish bases across Southeast Asia, new details are emerging about how these networks operate and why Japanese citizens have become prime targets.

One figure highlighted by investigators is the chair of Prince Holding Group, one of Cambodia’s largest conglomerates, whom the U.S. Treasury Department imposed sanctions on last month for alleged involvement in online fraud. The chair, Chen Zhi, founded a company in Tokyo in 2022 and reportedly owned a residence in Minato Ward, raising concerns that illegally obtained revenue may have flowed into Japan.

Cambodia has long been viewed as a hub for scam groups, particularly as the country transitioned from years of civil conflict to rapid economic growth. Much of that development has been fueled by Chinese capital. In the southeastern border city of Bavet, Chinese-language signs line the streets, and the city resembles a Chinese commercial zone. Behind the façade, however, large casino hotels have been built in the area, and such facilities are believed to serve as operational bases for international crime organizations engaged in special fraud.

When activity at Chinese companies slowed during the COVID pandemic, numerous Chinese criminal groups migrated into Cambodia. They are believed to have generated massive profits through bank transfer scams, investment fraud, and related schemes. The frontline workers executing these scams are often foreigners brought in from around the world through social media recruitment. Those who fail to meet quotas are subject to confinement and violence as part of a daily regime.

Earlier this month, cameras from JNN captured Cambodian authorities raiding one of these scam compounds. Some individuals attempted to flee during the operation, and buses emerged from the facility carrying detained foreign nationals. Authorities arrested more than 600 people across two locations that day, including 13 Japanese men and women. A broker interviewed by the reporting team explained why Japanese nationals are in high demand: “Japan has many elderly people with savings who are susceptible to fraud, so there is the highest demand for Japanese.”

Reporters later approached a large complex known locally as Legend Park, a scam base that suddenly appears in the middle of rural farmland. Tall walls surround the facility, security guards monitor all traffic, and strict facial and fingerprint recognition systems control access. People working inside are effectively unable to leave. Mobile phone signals are blocked within the buildings, and the compound includes entertainment spaces such as a basketball court, along with restaurants, convenience stores, and even sex-related businesses. Fukuoka Prefectural Police recently arrested seven women, including suspect Tomita Junichi, for allegedly recruiting participants for fraud operations conducted at this site.

Further investigation pointed to a potential financial backer behind the compound. Overseas media have reported that a Cambodian financial firm known as the V1 Group may have supported the development funding for the scam base. Images on the group’s related websites show buildings strikingly similar to those observed by the reporting team. A relative of Prime Minister Hun Manet is said to have influence within the company’s management, and the U.S. Treasury Department this year raised concerns that the group may be involved in money laundering for fraud networks. An international investigative organization has also claimed that members of the prime minister’s family and state institutions under their control are effectively supporting the activities of criminal organizations.

As suspicions of ties to state power deepen, Japanese police are moving to uncover the full scope of the operations. Japan recorded its worst-ever special fraud losses in the first half of this year, and the latest findings underscore that Japanese citizens are not only being targeted but are also being exploited as cover by overseas criminal groups.

Commentators noted that even if Cambodia’s enforcement strengthens, similar operations could shift to other countries, making domestic defenses more urgent. Younger people exposed to wealth disparities on social media and elderly individuals who struggle with complex procedures are both at heightened risk, and anyone can become vulnerable when emotionally weakened. Experts emphasize that instead of relying solely on teaching individuals protective techniques, Japan must reinforce social ties—both horizontal and vertical—so that communities function as safety nets, preventing people from falling through gaps and reducing the conditions under which fraud takes root.

Source: TBS

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