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.
Investment fraud targets the human desire for financial growth by promising high returns with “low to no risk.”
- Ponzi Schemes: Named after Charles Ponzi, these schemes pay “returns” to earlier investors using the capital brought in by newer investors. There is no actual underlying business; the system collapses when new recruitment slows down.
- Pyramid Schemes: Similar to Ponzi schemes, but participants are usually required to sell a product or service. The primary “profit” comes from the recruitment fees of new members rather than actual product sales.
- Pump and Dump: Fraudsters spread false, positive rumors about a cheap stock (the “pump”) to drive up the price. Once the price peaks, they sell their shares (the “dump”), leaving other investors with worthless stock.