Japan’s FSA receives 197 complaints about fraudulent investment solicitation in Q1’2017

Maria Nikolova

About 21% of those who complained about fraudulent investment solicitation are people in their 70s, according to data from the Japan’s FSA Counseling Office for Financial Services Users.

Japan is known for its strict business laws when it comes to the financial services industry, including the Forex sector. And yet, the nation is not immune to the damage caused by financial scams, as shown by the latest data provided by the Counseling Office for Financial Services Users at Japan’s Financial Services Agency.

During the quarter from January 1, 2017 to March 31, 2017, the counseling service received 197 reports of cases of fraudulent investment solicitation, with the bulk of the complaints coming from elderly people. Around 21% of the complaints came from people in their 70s, whereas 20% came from people in their 60s. People in their 80s accounted for 10% of these complaints.

The FSA says that in 120 of the cases investors reported damage as a result of the solicitation.

Elderly people are typical financial scam targets due to their vulnerability and the significant size of their wallets. Moreover, sales teams of online trading companies often use manipulative tactics that have a swift and detrimental effect on potential customers. A recent study by scientists at the Laboratory of Social Psychology at the University of Aix-Marseille has provided an elaborate picture of how these mentally abusive tactics work and what human traits they exploit. In its turn, the French financial markets regulator AMF has explained how these tactics break the law.

Going back to the work of the FSA’s Counseling Office during the first quarter of the year, let’s mention some general numbers. During the January-March 2017 period, the office handled 8,115 enquiries and comments, a decrease from the 9,268 cases handled in the October-December 2016 period.

Enquiries and comments about investment products amounted to 2,269 in the first quarter of 2017, down by 560 cases from the preceding quarter. In terms of percentage, such cases accounted for 28% of the total.

Across investment products, there were 426 cases (19%) concerning listed shares, 246 cases (11%) concerning FX, and 230 cases (10% of the total) concerning investment trusts.

Customers who made comments or enquired about investment products most often asked about securities companies (Type 1 business), the FSA said.

Read this next

Executive Moves

Scope Markets promotes James Hughes to head of marketing

Belize-based FX and CFDs brokerage Scope Markets has promoted James Hughes, who until recently was its head of brand, to take on an expanded role as the company’s global head of marketing.

Retail FX

Fraudsters clone Financial Commission’s website, two ex-members under suspicion

The Financial Commission, an industry-specific dispute resolution service that caters to the financial services industry, today announced that it believes a clone website has been impersonating its membership roster.

Retail FX

CMC Markets warns of operational challenges in Q1

CMC Markets PLC (LSE:CMCX) said in a trading update for the fiscal year 2023 that February and March posed a more challenging environment with lower equity volumes and a higher proportion of lower margin institutional trading activity.

Interviews

Why Is Digital PR So Important for Financial Service Providers? Buzz Dealer’s CEO Uri Samet with the Answers

Digital PR is all about spreading your message faster, wider, and stronger in the online world, through proper SEO, link-building, and organic and paid social media work.

Inside View

Why And How Are Virtual Cards Disrupting The Finance Industry

Virtual cards have the potential to revolutionize the finance industry by providing faster and more secure payments, wider acceptance, and eco-friendliness.

Interviews

Sweat Economy’s Oleg Fomenko on upcoming launch of Move-to-Earn app in the US

With the crypto winter’s biggest hurdles seemingly behind us as the prices of Bitcoin et al. climb the charts again, the Web3 economy is preparing for the next phase.

Industry News

OptionMetrics acquires Woodseer to add dividend forecast data for equities

“The addition of Woodseer’s product suite will enhance our ability to serve financial market stakeholders and academic institutions in their analysis of equity market performance and risk.”

Digital Assets

Metacade raises over $14.7M as presale set to close in 72 hours

Metacade, one of the most exciting GameFi ventures of 2023, has now raised over $14.7m as the presale goes into its final hours. With over 90% sold, the project expects to sell out ahead of their scheduled closing time, set for Friday 31st March at 23:59 Pacific Time. 

Digital Assets

Coinme launches Circle’s USDC on Stellar network

“By enabling USDC on Stellar in the Coinme wallet, anyone with cash can now utilize the Stellar blockchain to access a fully-backed dollar digital currency. People can now swap their cash for USDC on Stellar and send it in seconds for the cost of a penny.”

<