The latest development is that The report shows that digital currencies promoted by Japanese local governments are phishing scams used in reward programs to steal funds.

Detectives in Toyonaka City have arrested seven Vietnamese men who allegedly used fraudulently obtained credit card information to obtain “Machikane Points,” the currency in Toyonaka City. The suspects are believed to have abused a currency rewards program under which individuals are eligible for up to ¥2,500 for spending ¥50,000 ($6,900) to make payments from the same credit card account.

Phishing risks increase as the use of digital currency increases.

Police VKM remained silent for some reason, but it is believed that the group was able to collect almost half a million dollars in fraudulent premiums within just two days. St. Petersburg plans to capture new teammates.

This type of fraud has been recorded in other areas with similar tricks, for example, Kamagaya in Saitama Prefecture, which tricks its residents into using kamapay currency. Investigative research has found that several municipalities across the country have also been attacked, although some have been slow to release information about the incidents.

The general use of digital currencies has increased dramatically, promoting local currencies. Statistics from Senshu University show that the number of municipalities in the country that have issued these digital currencies will increase from 32 to 219 in 2023. However, caution is advised with such recent currencies as they are favored by phishing groups.

To that end, officials are calling on local governments to increase ID checks and limit credit card acceptance to those with the buyer’s name on it. Still, some officials admit that preventing fraud related to phishing attacks is still difficult.