CEO Fraud Up Sharply in Japan

Tokyo, Jan. 19 (Jiji Press)--Japanese companies are facing quickly growing threats of so-called business executive scams, or CEO fraud, in which email directives are issued by those pretending to be top executives of target companies.

Small and medium-sized firms tend to fall to prey, as executives and rank-and-file employees are closely knit there compared with larger companies. So far, a company has been swindled out of more than 100 million yen.

Against the background, the National Police Agency is calling for vigilance through the Japan Chamber of Commerce and Industry and other channels.

According to the NPA, police across the country were asked to give advice by victims of the masquerading in 39 cases only in a month from mid-December and found that some 540 million yen was stolen in 16 cases in total.

Common tactics include sending fake emails under the name of president or chairperson to accounting staff ordering them to create chat groups to discuss with "new business partners" or to carry out "new projects," and eventually tricking the target firms into transferring funds to designated bank accounts.

[Copyright The Jiji Press, Ltd.]