Police filed a record 83 criminal cases of home-renovation fraud last year, of which 34 were suspected to have involved tokury? (anonymous and transient quasi-gangster) groups, data released Thursday by the National Police Agency shows.
The cost of damages in 2025 totaled ¥15.1 billion — a record since the agency began keeping count in 2010. The figure was more than three times the cost of damages during the previous year, when 66 similar cases were reported.
Fraud during home renovation typically involves the offenders posing as contractors and visiting homes to conduct free inspections. Then, they convince the owners that large-scale renovation or construction is needed as soon as possible, making false claims such as severe deterioration of the roof or water pipes and arguing that these pose a potential hazard.
This type of fraud targets the supply chain and accounts payable departments of businesses.
- Invoice Manipulation: Criminals intercept a legitimate invoice between a supplier and a client and change the banking details to their own. The client pays the bill thinking they are paying their trusted vendor.
- Kickbacks and Bribery: A vendor secretly pays an employee of the purchasing company to ensure their bid is successful or to overlook inflated pricing.