HOME > NEWS&TOPICS > News > Beware of new type of billing fraud! You might receive scam calls about unsettled charges or settlement on damages

[January 2020]

Beware of new type of billing fraud! You might receive scam calls about unsettled charges or settlement on damages

The National Consumer Affairs Center of Japan (hereafter called "NCAC") has received numerous inquiries about a new type of billing fraud. Some consumers got a phone call about a compromise from a person claiming to be with a debt collection company and later received an email with a certificate for settlement. When you receive a phone call from someone claiming to be with a debt collection company and you don't recollect anything about the matter, just ignore it.

Sample case

There was a phone call from someone claiming to be a debt collection company who knew my name, telephone number and email address. The person told me as follows: "Three years ago, you joined an online investment study group with a limited number of members. You paid about 200,000 yen of entrance fee, but you have never paid a monthly fee of about 35,000 yen. Although a space was reserved for you, you never attended. The company operating the study project (hereafter called "the project operating company") incurred loss of about 3,500,000 yen. If you would like to seek a compromise, discuss it with the project operating company."

While I didn't remember anything about it, I once bought a similar information package. Since the person mentioned my access history, I thought I might have joined the group. The person said, "If you would like to come to a settlement with the project operating company before the case goes to court, you need to apply for insurance with a general insurance company with which the project operating company has a policy. In that case, you need to pay about 350,000 yen of deposit. The money will be refunded within 30 days after the acceptance of your application."

I agreed to the plan for a compromise, and then I received a phone call from a person claiming to be with the project operating company as follows: "Details of settlement will be emailed to you by a lawyer. After that, I will contact you again." Soon after the phone call, I received an email with a certificate for settlement from a person claiming to be a lawyer. When I read the document, I realized I was scammed. I haven't paid money yet. How should I handle this matter?

(inquiry received in January 2020)

Scam flow

The following briefly describes how the scam was carried out.

  1. There was a phone call from a person claiming to be with a debt collection company: "Once you joined a study group but didn't pay charges, and the project operating company incurred some loss," "If you would like to seek a compromise, you need to apply for general insurance and to pay deposit, which will be refunded later."
  2. After the consumer accepted the plan for a compromise, there was a phone call from a person claiming to be with the project operating company: "Details of a settlement will be emailed to you by a lawyer."
  3. Later, there was an email with a certificate for settlement (See Photo 1 and Photo 2) from a person claiming to be a lawyer.

NCAC contacted the debt collection company and the project operating company written on the document and asked about the issue. It was found that the debt collection company had never made such a demand and that the project operating company neither had run such a project nor had billed for it. On the other hand, NCAC did not get through to the law firm written on the document and there was no way to confirm the issue. After receiving the email from the self-claimed lawyer, a person claiming to be with the project operating company phoned the inquirer several times. At that time the inquirer had already consulted NCAC and never answered to the phone calls.

Advice for consumers

While postcards have been frequently used by billing scammers, telephone and other means of communication also have been used by them.

If you feel uneasy even slightly, consult your local consumer affairs center.

Certificate for settlement delivered to the inquirer

Photo 1. First page of the certificate for settlement delivered to the inquirer
Photo of the first page of the certificate for settlement delivered to the inquirer

Photo 2. Second page of the certificate for settlement delivered to the inquirer
Photo of the second page of the certificate for settlement delivered to the inquirer