Japanese police warn of rising investment scams as stock market boom fuels fraud risks

Japanese authorities are warning investors about a sharp rise in online investment scams as strong market momentum and record-breaking stock performance create new opportunities for fraudsters targeting retail traders.

According to the Metropolitan Police Department and local authorities, losses linked to online investment scams surged to a record ¥182.7 billion in 2025, marking an increase of ¥55.5 billion compared with the previous year.

Police said many scams begin through social media advertisements, direct messages, or promotional content falsely using the names and images of celebrities or public figures to gain credibility. Victims are then directed to fraudulent trading platforms, investment apps, or fake brokerage websites.

Authorities explained that scammers often encourage victims to begin with small investments before displaying fabricated account balances and fake profits designed to build trust. Once confidence is established, victims are pressured to deposit larger amounts of money, believing their investments are generating substantial returns.

Investigators warned that many victims may still be unaware they have been defrauded, as fraudulent platforms frequently continue displaying fictional profits while preventing withdrawals or demanding additional payments.

The warning comes as Japan’s equity market continues attracting heightened investor attention, with the Nikkei 225 reaching record highs and drawing more first-time and retail investors into financial markets.

Police urged the public to remain cautious of unsolicited investment offers received through social media or messaging platforms, particularly those promising unusually high returns or featuring celebrity endorsements. Investors were also advised to verify whether trading platforms and financial service providers are properly regulated before transferring funds.