<!-- Markdown twin of https://payments.gi/jurisdictions/japan/w10/. Same text as the HTML page; the HTML page is canonical. -->
title: Japan — Consumer Protection & APP Fraud | World Payments Monitor
canonical: https://payments.gi/jurisdictions/japan/w10/
publisher: Asymmetric Intelligence

### W10 Consumer Protection & APP Fraud Probable confirmed 2026-06-27

Japan has no single APP-fraud mandatory-reimbursement scheme equivalent to the UK PSR model; consumer redress for transfer scams runs primarily through the Act on Damage Recovery Benefit Distributed from Funds in Bank Accounts Used for Crimes (2008), under which funds in crime-linked accounts are frozen and distributed to victims. The Consumer Affairs Agency and National Consumer Affairs Center (hotline 188) handle complaints. 'Special fraud' (tokushu sagi) and social-media/romance investment scams reached record losses of ~JPY324bn in 2025, prompting account-freezing data-sharing frameworks, tighter bank-account/SIM rules and police information-sharing agreements.

Standing sub-brief · as of 4 August 2026 158 words · last cycle 2026-06-28

#### Consumer Protection & APP Fraud

Japan has no single APP-fraud mandatory-reimbursement scheme equivalent to the UK PSR model. Redress runs through the Act on Damage Recovery Benefit Distributed from Funds in Bank Accounts Used for Crimes (2008), under which crime-linked account funds are frozen and distributed to victims pro-rata. The Consumer Affairs Agency and National Consumer Affairs Center (hotline 188) handle complaints. Combined special-fraud, romance and social-media investment scam losses reached a record JPY324.11bn (~$2.12bn) in 2025, up from JPY199.1bn, with 42,900 reported cases. The framework reaches both bank and non-bank PSPs. Record fraud losses are driving account-freezing data-sharing frameworks and tighter bank-account and SIM rules, raising onboarding and monitoring obligations on PSPs. The trajectory is escalating.

#### Outlook

With record scam losses driving the response, the Japan-specific direction of travel is account-freezing data-sharing and tighter bank-account/SIM rules rather than a UK-style mandatory-reimbursement scheme. PSPs should anticipate continued tightening of onboarding and transaction-monitoring obligations as the consumer-protection framework hardens.

no periodic updates on record for this sub-brief

** Sources and findings (4)**

1. T2 [https://www.jp-bank.japanpost.jp/en/sustainability/social/customer/protection/](https://www.jp-bank.japanpost.jp/en/sustainability/social/customer/protection/) retrieved 2026-06-27
2. T2 [https://www.japantimes.co.jp/news/2026/02/12/japan/crime-legal/japan-2025-crime-figures/](https://www.japantimes.co.jp/news/2026/02/12/japan/crime-legal/japan-2025-crime-figures/) retrieved 2026-06-27
3. T3 [https://fintech.global/2025/04/30/japan-targets-rising-fraud-with-tougher-bank-account-and-sim-card-rules/](https://fintech.global/2025/04/30/japan-targets-rising-fraud-with-tougher-bank-account-and-sim-card-rules/) retrieved 2026-06-27
4. T3 [https://isthisascam.to/blog/scams-in-japan](https://isthisascam.to/blog/scams-in-japan) retrieved 2026-06-27