Osaka police have uncovered a major fraud scheme involving digital local currencies, arresting 21 Vietnamese nationals for allegedly using stolen credit card information to illicitly obtain and use points worth approximately 100 million yen.

How the Scam Worked

The suspects, led by a 33-year-old man, are accused of using credit card details leaked through phishing scams to purchase digital points like Toyonaka City's Machikane Point. They then used these points to buy high-value items like game consoles, which were resold for cash, part of which was sent overseas.

Rising Popularity, Rising Risks

Digital local currencies, issued by municipalities to stimulate regional economies, have exploded in popularity, with adopters increasing eightfold in five years. However, their high point-redemption rates often come with weaker security measures, making them attractive targets for fraudsters.

A Nationwide Problem

Similar crimes have been reported elsewhere in Japan, prompting cities to enhance security, such as implementing two-factor authentication. Experts warn that the focus on promotional benefits has sometimes led to cybersecurity being overlooked, leaving systems vulnerable to sophisticated criminal networks.