Think You Can’t Be Scammed? The SNS Investment Fraud Sweeping Through Japan’s 30s and 40s

Investment scams using SNS are rapidly increasing. According to National Police Agency data, the total amount of losses in 2025 reached ¥128.8 billion.

The problem has grown even more serious in 2026, with losses reaching ¥79.8 billion in just the first half of the year, from January through June. That works out to ¥440 million in losses per day. While seniors in their 60s and older account for a large share of the monetary losses, the number of scams is increasing across all age groups, with people in their 20s to 50s—the working-age population—accounting for approximately 60% of cases.

Why are losses also increasing among working-age people, who should have higher levels of financial and information literacy than older generations? Along with examining the reality of SNS investment scams, we asked experts how they can be prevented and what measures should be taken.

SNS investment scams surging among people in their 30s and 40s

In 2023, when annual losses from fraudulent credit card transactions exceeded ¥50 billion, many people were shocked by the figure. However, around the same time, SNS investment scams began to stand out, with losses soaring to ¥128.8 billion in 2025. Compared with 2024, that was a 48% increase, meaning that losses grew by ¥41.7 billion in just one year. This stands in contrast to fraudulent credit card transactions, which declined by approximately 10% in 2024.

SNS investment scams have also reached a serious level in 2026. According to data released at the end of July, losses had already reached ¥79.8 billion in the first half of 2026, an increase of ¥44.5 billion from the same period the previous year. In terms of the number of cases, there were 5,893 in the first half of the year, an increase of 3,020. Both the monetary losses and number of cases have more than doubled year on year. That works out to approximately 33 scams occurring every day, resulting in ¥440 million in losses (data from the National Police Agency’s “Status of Recognition and Investigation of Special Fraud Cases in the First Half of 2026 [Provisional Figures]”; same source below).

Furthermore, when looking at losses by age group, people in their 50s have the highest figures in both monetary losses and number of cases, followed by those in their 60s. However, the figures for people in their 30s and 40s have also nearly doubled, putting them on par in terms of the pace of increase. Cases of fraud are rapidly increasing even among working-age people who are digital natives, or the equivalent, and are presumed to have relatively high levels of financial and internet literacy.

The trap of accomplices lurking on LINE

So, what exactly are SNS investment scams? There are various methods, but the most common at present begins with an advertisement or direct message (DM) on social media, followed by an offer of an investment opportunity, ultimately leading the victim to transfer money into an account.

According to National Police Agency data, the most commonly used SNS platform in 2025 was Instagram, followed by YouTube. If users click on banner advertisements impersonating celebrities or DMs soliciting investments that appear in their feeds, they are directed to a LINE investment group.

In these LINE investment groups, not only does the ringleader posing as an investment adviser appear, but accomplices also join in, posting fake app screens that make it appear as though profits are being generated, along with comments such as, “I made this much profit!” They repeatedly create the impression of successful investments, manipulating victims into transferring money into an account.

The billionaire trap. Tactics becoming increasingly sophisticated

As far as I know, scam advertisements using images of celebrities that appear on YouTube and Facebook have decreased considerably. Platform regulations are likely having some effect.

Instead, it appears that the number of scams originating from DMs sent by users on Instagram and X (formerly Twitter) is increasing. For example, users claiming to be billionaires post messages such as, “I’ll show you the fastest route to becoming a billionaire,” or “Anyone in their 40s aiming for FIRE needs to see this!” and then send DMs to people who follow them.

Unlike the simple and direct messages of the past, such as “You are guaranteed to make money with this investment method!”, recent posts tend to incorporate softer terms that easily capture people’s interest, such as billionaire and FIRE. Posts such as “For those having trouble with Kioxia stock” are likely to strongly resonate with people who are actually holding Kioxia shares at an unrealized loss.

In many cases, scammers also prepare websites and apps specifically for fraudulent purposes, where they post numerous fictional investment performance records belonging to fake users who supposedly became billionaires or achieved FIRE. There also appear to be elaborate schemes in which people who have already been deceived into transferring money are partially refunded under the pretense that they have made a profit. Overall, it can be said that these tactics are becoming increasingly sophisticated and elaborate.

Why do people fall for them? Traps that exploit psychology

You may think, “No matter how sophisticated the methods become, there’s no way I’d actually transfer money.” That is probably the reaction of most people.

However, when the market plunges sharply and losses are mounting, it becomes difficult to remain calm. Even if you are initially skeptical, being repeatedly goaded by different accomplices taking turns in a LINE group can cause you to lose your composure. Even if you are making profits from your investments, you might look out of curiosity, think, “Maybe it’s okay if I start with a small amount,” or accept it with unfounded optimism, thinking, “This DM came to me because I’m lucky.”

And once you transfer even a small amount of money, a psychological tendency to avoid admitting that you have been deceived can take over, causing you to become increasingly deeply involved. Such a situation can certainly happen.

If the recipient account is in an individual’s name, it’s a scam

So, how can SNS investment scams be prevented? First of all, the obvious thing is to completely ignore investment-related DMs and banner advertisements.

That said, if you use SNS to gather information about investments and the stock market, investment-related DMs and banner advertisements will inevitably keep appearing. Some of them will likely be as enticing as those described above. Personally, I have clicked on investment-related posts many times simply because there was no harm in looking at them.

And even if you let your guard down, or momentarily lose your judgment, and end up joining a LINE group or something similar, you are still safe as long as you don’t transfer any money. However, you are already in a very dangerous position at that point, so if you ever find yourself thinking that perhaps it’s okay to send money, there is one final thing I want you to check. That is the name on the recipient’s bank account. If the account is in an individual’s name, you can consider it 100% a scam. Even if the account is in the name of a corporation or company, if that company is not registered as an investment management business, it is an illegal operator and the scheme is a scam.

Entrusting investment management to a friend is actually illegal too

In the first place, anyone who takes custody of another person’s assets and invests or manages them on their behalf is required to be registered with the Financial Services Agency as an investment management business operator. Performing such activities without registration constitutes a criminal act in violation of the Financial Instruments and Exchange Act. In other words, even entrusting money to a friend or acquaintance to manage on your behalf is illegal. Investment opportunities introduced through friends and acquaintances have existed for a long time, but they are a bona fide criminal offense, so please be extremely careful.

A properly registered investment management business operator would never have you transfer money to an account in an individual’s name.

If the account is in a corporate name, check whether it is actually a registered operator. You can find out immediately through the Financial Services Agency’s “Search for Financial Business Operators Licensed, Authorized, or Registered by the FSA” or the Japan Investment Advisers Association’s “List of Investment Management Members.” Going through the process of checking may also help you regain your composure.

There is also currently a law commonly known as the “Bank Transfer Fraud Relief Act.” If money remains in the recipient account or other account to which the funds were transferred, there is a possibility that the money can be returned if it is discovered after the transfer that the transaction was fraudulent. Unfortunately, however, I have rarely heard of cases in which a substantial amount of money was actually recovered through this measure. At present, the only real option is to protect yourself.

■ “Search for Financial Business Operators Licensed, Authorized, or Registered by the FSA” (Financial Services Agency)

■ “List of Investment Management Members” (Japan Investment Advisers Association) Official Website