Why are new Japan crime gangs replacing the yakuza?

Flexible, online crews beat rigid hierarchies. They recruit specialists per job, swap tools quickly, and avoid asset freezes. Messaging apps, spoofed calls, and crypto cash-out shorten the cycle from contact to withdrawal. The yakuza’s territorial model cannot match that speed, so digital groups drive today’s fraud.

How big are Japan fraud losses and why does it matter to UK investors?

Authorities reported 72.2 billion yen in fraud losses from January to July. That scale signals pressure on banks, insurers, and payments firms worldwide. UK companies may raise AML budgets, face more APP fraud attempts, and report higher alert volumes. Investors should watch fraud ratios and recovery disclosures in results.

What should UK banks do now to contain exposure?

Tighten payment screening for first-time beneficiaries, enrich device and phone intelligence, and expand mule detection for receiving accounts. Update models weekly with new indicators. Strengthen call-back verification and customer education. Track APP fraud recoveries and reimbursements. Report time-to-block and false-positive rates to show control effectiveness.

How could insurers feel the impact in 2025?

Expect more social engineering claims and funds-transfer losses. Pricing may rise, with sublimits on high-risk coverages and stricter wording around authentication and voluntary parting. Faster forensics and crypto tracing can lift recoveries. Underwriters will reward strong controls like dual approval, call-back verification, and training against voice and email spoofing.

Law and Government

December 23: Japan’s new crime networks eclipse yakuza as fraud losses surge—AML and insurer risk in

ByHuzaifa Zahoor December 23, 2025December 23, 2025

Japan’s crime landscape is shifting as tech-enabled gangs displace the yakuza. Police data show 72.2 billion yen in fraud losses from January to July, with a new Tokyo taskforce tackling fast, app-led scams. For UK investors, this matters: banks, insurers, and payments firms may face higher AML spend, fraud losses, and claims. At the same time, cybersecurity and compliance vendors stand to gain. We explain why Japan fraud losses are rising, who is exposed in Britain, and how to read 2025 budgets.