Leader of Massive Credit Card Fraud in Japan Arrested With Help of Crypto

Japan’s National Police Agency, along with a joint investigation team from nine prefectural police forces, has arrested 26-year-old Yuta Kobayashi on suspicion of orchestrating a large-scale credit card fraud scheme. Kobayashi, believed to be the mastermind, allegedly used stolen credit card information to gain steal over 100 million yen.

This is the first time Japanese authorities identified a suspect through cryptocurrency analysis, specifically involving the high-confidentiality cryptocurrency Monero.

The Investigation and Arrest

Between June and July 2021, Kobayashi allegedly listed fictitious items for sale on the popular flea market app Mercari. He completed 42 fraudulent transactions totaling 2.75 million yen using stolen credit card information.

The operation reportedly extended far beyond, with investigators believing that Kobayashi’s group made approximately 900 fraudulent transactions using stolen credit cards between June 2021 and January 2022. The credit card information was likely acquired through phishing attacks, in which fake websites tricked users into sharing information.

Money Laundering and Credit Card Fraud Using Crypto

The group attempted to launder their illegal earnings through Monero, the cryptocurrency known for its strong privacy protections. However, authorities were able to trace the flow of the asset, ultimately leading to Kobayashi’s identification.

Kobayashi’s group allegedly recruited members for the operation through “illegal part-time jobs” advertised on social media platforms. The group maintained secrecy by using encrypted communication apps to plan and execute their crimes, making them part of what authorities describe as a “mobile crime group,” or criminals who gather and disband on social media.

The Joint Investigation Headquarters has so far arrested 18 individuals connected to Kobayashi’s operation. These are believed to have played various roles in executing the fraudulent transactions and laundering the stolen money. The Cyber Special Investigation Unit of the National Police Agency, which joined the investigation in August, played a key role in linking Kobayashi to the crimes through the analysis of communication records and virtual currency flows.

Rising Credit Card Fraud in Japan

This arrest comes at a time Japan is experiencing a sharp rise in credit card fraud. In 2021, the Japan Credit Association reported a record 54.09 billion yen in damages from credit card fraud, with over 90% of cases involving the theft of credit card numbers. In the first half of 2022, the amount of damage reached 26.82 billion yen, surpassing figures from 2021.

Authorities believe that tackling the use of cryptocurrencies in fraud cases is crucial to curbing the growing wave of financial crimes, especially as criminals turn to sophisticated methods to avoid detection.

Spot trading has also been popular in Japan. According to Statista, in August 2024, XRP led cryptocurrency spot trading volume in Japan with approximately 837.1 million units traded. Bitcoin, despite having the highest trading value for the month, saw a trading volume of about 130.6 thousand units.

Data until August 2024

Gairika holds positions in BTC. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

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