TOKYO — Recently, damage caused by unscrupulous contractors exploiting everyday household problems has been on the rise in Japan. One of the most prominent examples is repair work involving household electrical breaker panels. It is difficult to see through a contractor’s bad intentions, and there are “traps” lurking in internet searches, too. Looking into the methods used in these scams reveals just how they work.
At the end of March 2025, a 67-year-old woman in Tokyo’s Adachi Ward was left bewildered. Perhaps because the switches were broken, the lights in her kitchen and Japanese-style room would not turn on. Her eldest daughter, 40, searched online and quickly found a repair company. Its website…
PROCUREMENT & EXPENDITURE (STOPPING KICKBACKS)
Procurement fraud usually involves inflated invoices or “fictitious” vendors.
- The Three-Way Match: Never pay an invoice unless you have matched the Purchase Order (PO), the Delivery Note (signed), and the Supplier Invoice.
- Vendor Master File Review: Review your vendor list annually. Look for suppliers with the same bank details or physical addresses as your employees.
- Dual Authorization: Implement a “Two-to-Sign” rule for all EFT payments above a certain threshold (e.g., R5,000).
- No “Cashing” of Checks: If you still use physical checks, strictly prohibit “Cash” as a payee and store blank checks in a dual-lock safe.