Japan to Steps Up Fight against Investment Fraud with AI

Tokyo, Sept. 1 (Jiji Press)–Japan’s Consumer Affairs Agency said Tuesday that it will step up its fight against investment and other fraud promising lucrative returns by using generative artificial intelligence technology to enhance information analysis. A group established within the agency the same day will utilize the technology to find schemes showing patterns common among past fraud cases and malicious business operators to enable earlier intervention, the agency said, announcing a set of measures against the type of scheme that attracts large amounts of money by promising high returns before eventually collapsing. “Once damage occurs, it will be difficult to recover, so it is important to respond quickly,” consumer affairs minister Hitoshi Kikawada told a press conference. The new group will run a generative AI system to analyze cases reported to the National Consumer Affairs Center’s information system for consultation, which number about 900,000 annually. The system is designed to identify suspicious schemes and detect early signs of business failures, based on its data on distinctive solicitation phrases and other characteristics extracted from past reported cases. According to the agency, it is difficult to take administrative measures such as issuing orders, unless the agency receives specific complaints, including about failures to pay promised dividends. If early signs of business failures can be detected, the agency will be able to respond more swiftly to malicious operators and provide more timely warnings to consumers. Additionally, the agency plans to gather information on reported consultation cases and tricks used by malicious operators by sending experts from the consumer affairs center nationwide starting next fiscal year. END [Copyright The Jiji Press, Ltd.]