Phone scam is a general term for criminal acts that use telephone calls to defraud victims of money or personal information. The National Police Agency uses the official term "special fraud" (tokushu sagi), classifying it into 10 types including bank transfer fraud (ore-ore sagi), tax refund fraud, fictitious billing fraud, loan guarantee fraud, and investment fraud. In 2023, approximately 19,000 cases were reported with total losses of about 44.1 billion yen, averaging roughly 2.3 million yen per case.
Tactics are becoming increasingly sophisticated. Beyond the traditional pattern of impersonating a family member to demand cash, newer schemes include tax refund fraud by callers posing as municipal or tax office staff, impersonating police officers claiming "your bank account has been used in a crime," and even using voice cloning technology to mimic a family member's voice. The common thread is psychological manipulation that creates "urgency" and "authority" to override rational judgment. Phrases like "you must transfer the money today or you'll be arrested" or "don't tell anyone about this" are strong indicators of fraud.
Victims aged 65 and older account for about 70% of all cases, but younger people are not immune. Hybrid schemes are on the rise, such as recruiting for side jobs via social media and then using phone calls to direct investment transfers, or using smishing (SMS fraud) to lure victims to fake websites before an operator calls to extract personal information. Caller ID spoofing can display real bank or government numbers to build trust, making it dangerous to judge safety by the displayed number alone.
The three fundamental defenses are: first, if money comes up during a phone call, hang up and call back using the official contact number; second, keep voicemail on at all times and do not answer unknown numbers directly - criminals dislike being recorded, so voicemail alone acts as a deterrent; third, establish a family code word in advance. See Bank Transfer Fraud Prevention for detailed countermeasures by scam type and Phone Scam Reporting Guide for what to do if you become a victim.