Major Financial Crime Techniques and Countermeasures
This document gives an overview of the financial crimes that have become more common in recent years and information on how to prevent them.
Fraudulent money transfers using internet banking
Criminal techniques employed
- Viruses that infect devices and steal authentication information*2
This technique infects PCs and smartphones with a virus to steal and misuse authentication information.
Recently, a virus capable of stealing one-time passwords has been discovered. - Fake (phishing) sites that trick users into entering authentication information, then steals that information
This is a technique that steals authentication information by infecting a PC or smartphone with a virus or sending an e-mail masquerading as a bank that directs recipients to a fake website.
- *2Authentication information: Information required to use internet banking, such as IDs, passwords, secret words, and random number card numbers
Prevention measures
- Do not allow PCs, smartphones, or other devices to be infected with viruses
Specifically, take measures such as installing commercially available security software or SaAT Netizen, which we provide free of charge, keeping the definition files constantly up-to-date, and regularly running scans.
- Do not store IDs and passwords as electronic data
Do not store authentication information as electronic data on a hard drive, flash memory, or in the cloud. There has been an uptick in viruses that steal and misuse this information.
- Delete suspicious e-mails, etc. without opening them
When using internet banking, access the site from a bookmark you have previously registered, or from our bank’s website. Phishing e-mails may lead you to fake phishing sites.
- It is extremely dangerous to do internet banking on a PC that can be used by the general public (such as PCs in internet cafes, hotels, and other accommodation facilities that can be used by anyone) and should be avoided as much as possible.
- It is extremely dangerous to do internet banking using free public wireless LAN (free Wi-Fi spots provided by stores and mobile telephone companies, etc.) and should be avoided as much as possible.
- Please keep your PC and smartphone operating systems and software up-to-date. In particular, please pay close attention to the following.
OS Browser Adobe Flash Player Adobe Acrobat JAVA
Transfer fraud and identity theft
Criminal techniques employed
- The scammer may have already researched your name, date of birth, and family structure. Do not trust the person on that basis alone.
- The stories being told to win your trust have become more sophisticated, and often involve multiple perpetrators claiming to be someone’s boss, co-workers, or a lawyer, etc. Women are sometimes also complicit.
Prevention measures
- Under no circumstance whatsoever should you hand over any money or your bank card.
- Remember that situations in which someone needs money straight away or in which money has to be transferred that day are situations that almost never occur in daily life. If you find yourself caught up in such a situation, immediately consult with your family or the police and ask them to be present at any meetings, etc.
X received a call from someone claiming to be the police who told him that there have been a spate of bank transfer scams in the area recently and that he should be vigilant. The caller gave X a phone number to call if he wanted to consult about anything.
Shortly thereafter, X received a suspicious phone call and immediately called the number he had been given. He was told to pretend to be deceived and to give the other party money.
Believing that he was cooperating with the police, X pretended to be deceived and gave money to the scammer only to discover that the “police officer” and the person to whom he gave the money were in fact part of the same criminal group, and that he had been defrauded.
Even if the police ask you to cooperate with an investigation and pretend to have been defrauded, they will NEVER instruct you to hand over money.
Under no circumstance whatsoever should you hand over any money.
Tax refund fraud
Criminal techniques employed
- If you are given instructions over the phone on how to operate an ATM, you are definitely being scammed.
- Scammers use words such as “refund” and “tax refund” to make people visit ATMs. Specifically, scammers will pretend that they will refund overpayment of medical expenses or transfer the unpaid portion of your pension to your account. They will say whatever it takes to get you to rush to an ATM such as telling you that you will not receive the money unless you go to an ATM immediately with your mobile telephone and bank card, or that they will resolve the situation if you act today.
- Scammers often claim to be a municipal employees or pension service employees to make you fall for their scam.
Prevention measures
- ATMs cannot be used to receive refunds, etc. Refunds, etc. are transferred into your account.
- If you are told to go to an ATM by someone, whatever the circumstance, immediately contact the police, a family member or someone you trust, and never operate an ATM.
Once at the ATM you are told to call a specific number,
- 1The caller tells you they will transfer one million yen into your account, and asks you to press the “transfer” button
This will transfer money from your account to the scammer’s account
- 2The caller then instructs you to enter “1,000,000 yen” in the “Amount” field to receive 1,000,000 yen
This will transfer one million yen to the scammer’s account
This is how scammers manipulate you into trusting them and make you operate the ATM in a way that makes it seem like they are transferring money into your account.
Phishing scams
The following page provides information on phishing scam techniques, characteristics, and countermeasures.
Stolen or counterfeit bank cards
Criminal techniques employed
- This is a technique that involves a criminal taking your card from a locker or valuables box (safety deposit box) while you are using a sports club, golf course, public bathhouse, or large communal bath in an accommodation facility and using a skimmer device to forge your bank card.
- Bank cards are stolen by burglars or pickpockets or from unattended vehicles or bags and used to withdraw deposits.
Prevention measures
- Make sure you securely lock lockers and valuables boxes. (Some facilities may have broken locks or lack security measures. We recommend that you try and avoid leaving your bank card in such locations.)
- Keep your bank card, passbook, and driver's license, etc. separate, be aware of any suspicious devices in or around the card slot when using ATMs, avoid using your date of birth as your PIN number, and use a different PIN number to your bank card PIN number when using a safety deposit box.
- If you notice that your bank card is missing, or if you notice anything suspicious when you return to your locker (such as your bank card having been taken out of your wallet), contact us immediately and take steps to cancel your card so that it cannot be used to withdraw cash.
Billing fraud
Criminal techniques employed
- Billing fraud involves being falsely billed for items you do not recall, such as fees for using pornographic or dating sites or claiming that you have not completed cancellation procedures after the free trial period. In such cases, threats are always included to encourage payment, which makes people feel insecure.
Threats include initiating legal proceedings, taking compulsory execution proceedings to seize assets, publicizing your name, and going to your workplace or home to collect payment - Once money has been paid, the scammer knows your personal information such as your telephone number and employer and may demand even larger sums of money. (Victims are what is commonly referred to as “sitting ducks”)
Prevention measures
- NEVER contact the person who sent the bill.
The scammers are waiting for you to contact them. When you contact them, they will use techniques to get you to tell them your personal information (name, etc.), leading to further misuse of your personal information.
- NEVER transfer money to the scammers.
Even if the amount is small, do NOT pay it. Once you pay the bill, regardless of how much it is, you will receive further bills and other fictitious bills.
Many attempts are being made to misuse the court process. Please pay special attention to documents received that appear to be from a “court”
Other types of fraud
- Loan guarantee fraud
- This is a type of fraud that uses direct mail, faxes, and telephone calls to lure applicants for loans, and then defrauds them by forcing applicants to transfer money to their savings accounts by implying the money is a security deposit or some other payment.
- Investment solicitation fraud
- This is a type of fraud that offers to sell fictitious financial instruments such as unlisted stocks that are about to be listed on the stock exchange, and then induces the person being scammed to make purchases by telling them that they will make money off the transaction. Some scammers will transfer money to you in the form of dividends for a few months after the purchase to gain your trust, but will then disappear and be uncontactable.
- Online shopping fraud
- This is a type of fraud that attracts customers by making it look like they are selling a popular product at a discounted price. Scammers create websites that look exactly like famous websites to make you trust them. Sites ask for payment upfront but do not send products, or send unrelated products, and tend not to permit payment by credit card (even if you can choose to pay by credit card, the sites make up various excuses to make you pay by bank transfer. Sites often use strange Japanese).
Prevention measures
- Always be wary when something sounds too good to be true. Be particularly wary of sites that suggest you will make money easily.
- Be wary of counterfeits (it is vital to distinguish between the real thing and things that sound too good to be true).
- Talk to others first before making a decision (it is important to stay calm).
