Fraudulent business practices that take advantage of uncertainties caused by the Great East Japan Earthquake are spreading, causing local consumer affairs centers to receive increased calls for help as people seek advice on dealing with matters such as landlord trouble and loss due to opportunistic fraud.
Fraudulent business practices that take advantage of uncertainties caused by the Great East Japan Earthquake are spreading, causing local consumer affairs centers to receive increased calls for help as people seek advice on dealing with matters such as landlord trouble and loss due to opportunistic fraud.
In a two-month period, local consumer affairs centers have reported more than 12,000 requests for advice on issues related to the earthquake. Claims include being sold fraudulent corporate bonds and unlisted stocks, being coerced into paying for sloppy roof repairs and other home improvements, and being asked to make donations by people falsely claiming to represent official institutions and organizations.
Kimiaki Nishida, a social psychology professor at Rissho University and author of "Damshi-no-Teguchi" (Trickster Techniques), points out that all of Japanese society is preoccupied with earthquake reconstruction, making them vulnerable to unconsciously dropping their guard.
"One way to protect yourself is to be aware that unscrupulous businesses perceive tragic times such as these as 'now is our chance to make some money.' "
In one case, toward the end of April, a man in his 50s living in the northern Kanto region received the following telephone call.
"Demand for clean drinking water is rising as a result of the nuclear power plant accident. If you buy corporate bonds in a company marketing water purification systems, I'll purchase them from you at a markup of between 250 and 400 percent," the caller told him.
Told the offer was "limited to 49 people," the man deposited 13 million yen ($162,200) into a bank account as instructed. After depositing the money, however, he says he was unable to make further contact with the company that solicited his investment or the maker of the water purifiers.
In late April, the Consumer Affairs Agency and National Consumer Affairs Center (NCAC) issued a warning advising people to be on the lookout for solicitors making the following request: "I'd like you to buy usage rights for fee-based retirement homes that have hot springs, as we would like to move disaster victims into them."
Separately, there were 53 cases in which claimants said they cheaply sold precious metals after being haggled out of them by people who contacted them saying, "we are looking for metal to be used in pacemakers as there is a shortage due to the earthquake."
If the claimants refused, they were cursed at and told things like, "You're going to neglect people in need? You're not worthy of being a human being."
Cases conveniently using the words "victim support" are especially prevalent. People need to be especially careful with requests that sound realistic or legitimate.
"Even if you are told about 'high paying dividends,' unless you fully understand the risks involved and how the proposal will earn profits, you should never enter into a contract. You should always check diligently to be sure that monies are actually being used in support of disaster victims," warns an NCAC representative.
In areas that suffered serious damage from the earthquake, trouble is occurring in all aspects of people's lives. The most common problem, accounting for 14 percent of claims, is trouble involving the leasing of real estate.
As a result of the earthquake, the home of a man in his 60s living in Ibaraki Prefecture developed cracks in its foundation and started leaning to one side. He contacted the real estate agent asking them to make an inspection and repairs. However, the man says the realtor told him, "We have no intention of repairing the property; if you don't like it move out."
Many consumers are also seeking advice about loans: a woman in her 30s from Miyagi Prefecture sought guidance, saying, "Our home was undergoing renovations when it was struck by the tsunami, and the only thing that remains is the first floor framework. I still have a 10 million yen loan outstanding."
Another women from the same prefecture in her 50s said, "I was in the middle of repaying a loan to a consumer credit company; however, after the being victimized by the disaster I don't know when I will ever be able to repay it."
A spokesperson for the NCAC notes, "When apartments and other rental properties are in need of repair, tenants can request that the landlord make them. As for loans, some companies may temporarily defer repayment; people should contact us individually for consultation."