In a chilling tale of deception, a woman in her forties from Hokuto City, Yamanashi Prefecture, fell victim to a cryptocurrency scam after meeting a man claiming to be from Taiwan online.

The scam, which unfolded last year, cost her an astonishing ¥11.32 million worth of digital assets, underscoring the growing menace of online fraud targeting emotional vulnerabilities.

The victim first met the fraudster on a social media platform where he posed as a charming gym owner, gaining her trust and eventually persuaded her to invest in cryptocurrency.

Following his instructions, she downloaded a specialized crypto exchange app and made 13 transactions between May and July last year. However, the man vanished without a trace, leaving her devastated and penniless.

The epidemic of romance scams

According to the Yamanashi Prefectural Police, this incident is part of a rising wave of "social media romance scams" in Japan. These schemes exploit victims by building emotional connections before introducing fraudulent investment opportunities and persuading them to transfer funds to private accounts.

When victims attempt to withdraw funds, they would often be told that their funds are frozen and would need to deposit even more money to release them, leading to devastating financial losses.

This case echoes other alarming incidents across Asia. In Hong Kong, for instance, a businesswoman lost HK$41 million after being lured into using a fake cryptocurrency platform. Similarly, another Hong Kong finance manager was scammed out of HK$17.8 million after being baited with fake profits from gold and cryptocurrency investments. These cases highlight the sophisticated tactics fraudsters employ to deceive their victims.

Cryptocurrency scams have surged globally, with Japan alone witnessing significant losses in recent years. In 2024, Japan recorded over ¥126.8 billion in losses from online investment frauds, many involving digital assets.

To make matters worse, the anonymous nature of blockchain makes it nearly impossible for police officers to track down the people behind the scams.

Authorities are urging the public to exercise caution when approached with investment opportunities online. When in doubt, you can always refer to anti-scam applications such as the "ScamShield" app in Singapore or the "Scameter" in Hong Kong.

However, the emotional manipulation involved in romance scams is particularly insidious and hard to detect. This case serves as a stark reminder of the dangers lurking in the digital world.

As scammers become increasingly sophisticated, individuals must remain vigilant and skeptical of unsolicited offers or overly personal interactions online. Enhanced cooperation between law enforcement agencies and financial institutions is crucial to combat this growing threat effectively.