Authorities in Japan have arrested two suspects over their alleged role in helping a fake police fraud group steal cryptocurrency worth 81 million yen ($515,000) from a woman in her 40s.
Police believe the group operated out of Cambodia and is part of a larger operation.
Police Arrest Two In Crypto Scam
According to a report by FNN, Japanese authorities arrested Saki Okayama and Mitsuki Minamisawa in connection with the scam. Group members impersonated police officers and used intimidation tactics to pressure their targets into transferring their crypto assets. The group’s latest target, a woman in her 40s, was told her bank card was linked to a money laundering investigation.
The group claimed that 400 accounts were used to launder funds from a fraud case that led to 600 billion yen in losses.
How The Scam Worked
Authorities also explained how the scam worked. It began with a call from an individual claiming to represent the Osaka Prefectural Police. The caller reportedly told the woman her card belonged to one of several accounts linked to a money laundering investigation.
The woman was also told she was close to being arrested unless she proved her innocence. Authorities alleged that the false accusation and pressure from the scammers led the victim to transfer 81 million yen worth of cryptocurrency.
Authorities have not disclosed which cryptocurrencies were stolen or the wallet addresses that received the crypto. However, they allege the suspects are part of a larger organization and are linked to confirmed losses of around 240 million yen from similar scams. Authorities believe the group operates out of Cambodia, and that a Chinese national is at the helm of the entire operation.
Fake Police Scams And Rising Losses
The arrests come as losses from fake police scams mount in Japan. According to the country’s National Police Agency, fake police scams have resulted in 61.71 billion yen across 5,422 cases in the first seven months of 2026. While the number of cases has dropped 6.4%, losses have jumped by 25.7%. The scale of the frauds has forced authorities to treat such scams as a separate category. Police statistics have reported a 42.9% jump to 210.81 billion yen in special fraud losses from a year earlier.
In a separate incident, an individual lost 73 million yen to scammers pretending to be officials from the Tokyo Metropolitan Police Department who forced him to transfer the funds to prove his innocence. Authorities have urged people not to fall victim to such scams, stressing that they would not ask someone to transfer funds to designated accounts.
Japanese Regulators Strengthening Fraud Controls
Regulators in Japan are focusing on strengthening controls to check any fraud proceeds moving through cryptocurrency exchanges. The country’s Financial Services Agency and National Police Agency have proposed implementing withdrawal delays and stronger checks on newer wallet addresses. This includes a waiting period before new addresses can be used, stronger measures to monitor transactions, and account restrictions in cases of suspicious activity.
The authorities have also asked exchanges to improve authentication measures and response times when asked to identify suspicious transactions.
The proposal comes after a substantial jump in fraud cases and losses. The National Police Agency reported 18,067 special fraud cases and 151.47 billion yen in losses until May, with fake police schemes accounting for 40.32 billion yen.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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