440 million yen in losses per day! “I won’t fall for it”—Social media investment scams targeting people in their 30s and 40s… If the recipient’s name is an individual’s, then

Social media -based investment scams are surging. According to data from the National Police Agency, the total amount of losses in ’25 reached 128.8 billion yen.  

In ’26 , the problem has expanded further; in the first half of the year alone (January through June), losses totaled 79.8 billion yen, with daily losses reaching 440 million yen. While seniors in their 60s and older account for the majority of the financial losses, the number of fraud cases is increasing across all age groups, with working-age adults in their 20s through 50s accounting for about 60 percent of the cases.  

Why are working-age adults—who should have higher financial and digital literacy than the elderly—also falling victim in increasing numbers? We asked experts to shed light on the reality of social media-based investment scams and discuss preventive measures.

A Sharp Rise Among Those in Their 30s and 40s! Social Media Investment Scams  

In 2023, when annual losses from credit card fraud exceeded 50 billion yen, many people were shocked by the figure. However, social media-based investment scams—which began to gain prominence around that same time—saw the total losses surge to 128.8 billion yen in 2025.Compared to 2024, this represents a 48% increase—a rise of 41.7 billion yen in just one year. This stands in stark contrast to the approximately 10% decline in credit card fraud seen in 2024.

Furthermore, the situation with social media-based investment scams remains severe in ’26.According to data released at the end of July, in the first half of ’26 (January–June), the total losses had already reached 79.8 billion yen—an increase of 44.5 billion yen compared to the same period the previous year. In terms of the number of cases, there were 5,893 in the first half, representing an increase of 3,020 cases.Both the total amount of losses and the number of cases have more than doubled compared to the same period last year. This amounts to approximately 33 fraud cases occurring every day, resulting in losses of 440 million yen (data from the National Police Agency’s “Status of Reported and Apprehended Special Frauds in the First Half of Reiwa 8 (Preliminary Figures)” / same source applies below).

Furthermore, when examining losses by age group, people in their 50s account for the highest number of cases and the largest amount of losses, followed by those in their 60s; however, cases among people in their 30s and 40s have nearly doubled as well, keeping pace with the overall increase.Cases of people being deceived are surging even among the working-age generation—digital natives or those with comparable digital literacy—who are generally considered to have relatively high financial and internet literacy.

The Trap of “Accomplices” Lurking on LINE

What exactly are social media-based investment scams? While there are various methods, the most common today involves ads or direct messages (DMs) on social media serving as the entry point; victims are then offered a get-rich-quick scheme and persuaded to transfer money into a bank account.

According to National Police Agency data, the most commonly used social media platform in ’25 was Instagram, followed by YouTube. If users click on banner ads impersonating celebrities or DMs soliciting investments that appear there, they are redirected to an investment group on LINE.

Within these LINE investment groups, not only does the “ringleader”—who acts as an investment advisor—appear, but “accomplices” also join in. They continuously post fake app screenshots that make it seem as if profits are being generated, along with comments such as “Look at all the profits we’ve made!”, all to manipulate victims into transferring funds into their accounts.

The “100-million-yen-maker” trap… increasingly sophisticated tactics

As far as I know, scam ads using images of celebrities on YouTube and Facebook have decreased significantly. This is likely due, in part, to regulations imposed by the platforms themselves.

Instead, it appears that incidents of fraud triggered by direct messages (DMs) from users on Instagram and X (formerly Twitter) are on the rise. For example, a user claiming to be a “millionaire” might post messages like, “I’ll teach you the fastest way to become a millionaire,” or “A must-see for anyone in their 40s aiming for FIRE!” and then send DMs to people who have followed them.

Unlike the simple, direct messages of the past—such as “You’re guaranteed to make money with this investment method!”—recent posts often incorporate soft, attention-grabbing terms like “millionaire” and “FIRE.”Posts like “For those struggling with Kioxia stock” are likely to resonate strongly with people who are actually sitting on unrealized losses in Kioxia stock.

Furthermore, scammers often set up dedicated websites or apps for their schemes, where they post numerous fabricated investment track records from fake users who claim to have become “hundred-million-yen earners” or achieved “FIRE.” There also appear to be sophisticated tactics where, after someone has been tricked into sending money, the scammers refund a portion of the funds, claiming that a profit has been made.Overall, it’s safe to say that these scams are becoming increasingly sophisticated and cunning.

Why Do People Fall for It? Traps That Exploit Human Psychology

You might think, “No matter how sophisticated the tactics get, I’d never actually transfer money.” That’s likely the reaction of the vast majority of people.

However, when the market plunges and losses mount, it becomes difficult to remain calm. Even if you’re initially skeptical, if you’re constantly bombarded with pressure from accomplices taking turns messaging you on LINE, you may lose your sense of rationality.Even if you’ve been making profits from investing, you might peek out of curiosity and start by thinking, “It’s okay if it’s just a small amount,” or accept the offer based on unfounded optimism, believing, “I must be lucky that this DM popped up for me.”

If you send even a small amount, you’ll likely be driven by a psychological resistance to admit you’re being scammed, causing you to sink deeper and deeper into the trap—this scenario is entirely plausible.

If the recipient is listed under a personal name, it’s a scam

So, how can you prevent social media-based investment scams? First and foremost—and this should be obvious to everyone—completely ignore any investment-related DMs or banner ads.

That said, if you’re gathering information about investing or the stock market on social media, investment-related DMs and banner ads are bound to appear nonstop. Among them, you’ll likely find some that pique your interest, just as mentioned earlier. I myself have clicked on investment-related posts many times, figuring there’s no real harm in just looking.

And even if you let your guard down—or have a momentary lapse of judgment—and end up joining a LINE group or something similar, you’ll be fine as long as you don’t actually send any money. However, that stage is already quite precarious, so if—just in case—you ever find yourself thinking, “Maybe I should send the money,” there’s one final thing you should check: the name on the recipient’s bank account.If the account is in an individual’s name, you can be 100% certain it’s a scam. Even if it’s in the name of a corporation or company, if that entity isn’t registered as an investment management firm, it’s an illegal operator and a scam.

Entrusting investments to a friend is actually illegal, too

To begin with, in order to accept another person’s assets for investment and management, registration as an investment management firm with the Financial Services Agency is mandatory. Engaging in such activities without registration constitutes a criminal offense under the Financial Instruments and Exchange Act. In other words, entrusting your money to a friend or acquaintance for investment management is also illegal.Investment opportunities offered through friends or acquaintances have been around for a long time, but they are, in fact, criminal acts, so please be extremely careful.

A properly registered investment management firm would never ask you to transfer funds to an account in an individual’s name.

If the account is in a corporate name, verify whether it is truly a registered firm. You can quickly confirm this using the Financial Services Agency’s “Search for Financial Businesses Licensed, Permitted, or Registered by the Financial Services Agency” or the Asset Management Association of Japan’s “List of Investment Management Members.” The act of verifying this information should help you regain your composure.

Note that there is currently a law commonly known as the “Anti-Wire Transfer Fraud Relief Act.” If funds remain in the recipient’s account and the transaction is later determined to be a scam, there is a possibility of a refund. Unfortunately, however, to the best of my knowledge, I have never heard of anyone recovering a substantial amount of money through this measure. The reality is that self-protection is your only option.

■ “Search for Financial Institutions Licensed, Permitted, or Registered by the Financial Services Agency” (Financial Services Agency)

■ “List of Investment Management Members” (Association of Asset Management Companies) official website