If you're being encouraged to invest in crypto assets (also known as virtual currencies) through a LINE group, it's worth suspecting that this could be a scam.
Inside these LINE groups, people claiming to be investment "teachers" or assistants explain market trends, and other participants post as if they're making profits. Because of this, the group may initially look like a study session or a place to exchange investment information.
However, Japan's Financial Services Agency (FSA) and LINE itself have warned about investment scams that use social media and LINE. This is because scammers have been confirmed to lure people into LINE groups using accounts impersonating public figures or social media ads, and then demand crypto asset transfers or deposits.
As one example, it was reported that a man in his 50s living in Nagasaki Prefecture had a total of ¥46,000,000 (approx. USD 307,000, converted at roughly ¥150/USD for reference) in crypto assets stolen through a LINE group scam.
In early November of last year, the man found a post about an investment study group on X (formerly Twitter) and began exchanging messages on LINE with a person identifying herself as "Misaki Ishihara," an assistant to an investment expert. After being invited into a group, he was encouraged to invest in crypto assets by someone impersonating a real investment expert, and between around January 13 and 29, he sent crypto assets worth a total of ¥46,000,000 (approx. USD 307,000) to a designated address across six transactions, and was defrauded.
Source: Yomiuri Shimbun Online
Be especially cautious if you're told to transfer funds to a personal bank account, or asked to send crypto assets to an unfamiliar destination. There are also cases where, once you try to withdraw funds, additional payments are demanded under the guise of "taxes" or a "security deposit."
This article explains the common tactics used in crypto asset LINE group scams, the warning signs to watch for, what to check before sending any funds, and what to do if you've already sent money.
Common Tactics Used in Crypto Asset LINE Group Scams
Crypto asset scams that use LINE groups don't always present themselves as obviously suspicious from the start. They can appear to be a study session or a place to exchange investment information, gradually lowering participants' guard along the way.
When the exchanges within a group are lively, or professional-sounding explanations keep coming, it can feel like you're getting legitimate investment information. But trusting the group based on its atmosphere alone can lead you into a situation where you're later asked to deposit or transfer funds.
Here, we'll walk through the common tactics used in crypto asset scams run through LINE groups, one by one. Check them against any group you're currently part of, or any solicitation you're actually receiving.
Victims Are Lured to LINE via Social Media Ads or Celebrity Impersonation
There are cases where the initial contact comes from a social media ad or an account impersonating a public figure, which then leads to a LINE group.
The first point of contact is often a social media ad on Instagram, Facebook, X, or similar platforms. Using the name and photo of a celebrity or investor, these ads make the content look like investment commentary or a study group, and prompt the viewer to register on LINE.
Police announced that a man in his 30s living in Aomori Prefecture had 3,400,000 yen (approx. USD 22,700) defrauded from him in an investment-themed scam. According to the Misawa Police Station, on October 28 of last year, the man in his 30s, while browsing Instagram on his smartphone, saw a video ad about investing that impersonated the YouTuber "Ryo @ Ribe Daigakucho," and registered the LINE account "Ryo Ribe Daigakucho."
Source: TBS NEWS DIG
Even if a celebrity's name is being used, that doesn't mean the person is actually running the account. If you're directed to a LINE group that isn't referenced on the official website or the person's own official social media accounts, you should suspect impersonation.
A Person Claiming to Be an Investment "Teacher" or Assistant Appears
In investment-themed LINE groups, people who claim to be the following can appear:
- Teacher
- Instructor
- Analyst
- Assistant
This kind of person explains market outlooks and investment decisions, presenting themselves as a central figure within the group. When the posts contain technical terminology and commentary that tracks the market's movements, it's easy to feel like you're dealing with someone who genuinely knows investing.
There are also cases where, separate from the "teacher," an "assistant" contacts you individually. By walking you through app registration and deposit procedures and answering your questions patiently, they create a setting where you feel comfortable proceeding with the process.
However, a title or explanation given on LINE alone is no way to confirm whether that person is really the expert they claim to be. If your investment decisions and deposit procedures are moving forward based solely on instructions from one specific person, it's important to stop and reconsider before trusting them.
Group "Shills" Make It Look Like Others Are Profiting
Inside LINE groups, there are cases where multiple participants are made to look like they're generating profits.
For example, when posts such as "I followed the teacher's instructions and made a profit" or "I started small, but my assets have grown" keep appearing, it's easy to feel like you could earn the same way. The more participants there appear to be, and the more active the exchanges look, the more the group can seem like a genuine investment community.
However, the people posting in the group aren't necessarily ordinary participants. The FSA has warned that the perpetrators sometimes use multiple accounts as so-called "shills" to make it look as though investments are succeeding.
Within LINE groups, perpetrators sometimes use multiple accounts as so-called "shills" to make it appear that investments are succeeding, encouraging participants to want to invest. At this stage, victims are sometimes instructed to deposit funds into a personal bank account or to send crypto assets.
Source: Financial Services Agency (FSA)
For this reason, it's important not to base a decision to deposit or transfer funds solely on success stories or profit reports circulating within a LINE group. Even if the people around you appear to be excited, that atmosphere itself may have been manufactured to earn your trust.
Victims Are Directed to Fake Investment Apps or Unknown Exchanges
There are also cases where victims are directed toward a fake investment app, or an exchange (order-book exchange) whose actual operations can't be verified.
Once trust has been built inside the LINE group, participants are told things like "you can trade using this app" or "you can invest by registering with this exchange." Because a balance and profit are displayed on screen, it can look as if crypto assets are genuinely being invested.
However, the figures shown on an app's or exchange's screen aren't necessarily the result of real trading. If it's a fraudulent site or a fake app, it's entirely possible to display a profit for the user without any real trading behind it.
Be especially cautious if you can't find any information about the operating company even after searching, or if the exchange doesn't appear on the FSA's official list of registered crypto asset exchange service providers. Rather than registering through a link sent on LINE, check the official information and registration status first.
Victims Are Told to Send Money to a Personal Bank Account or a Designated Crypto Wallet
There are cases where victims are asked to send funds to a personal bank account, or to a designated crypto asset destination.
After interest in investing has been built up inside the LINE group, someone in an "assistant" role typically walks the victim through how to make a deposit. At this stage, they may be told to transfer funds to an unfamiliar personal bank account, or instructed to buy crypto assets and send them to a specific wallet address.
The man, having come to trust the story, opened a dedicated investment site and transferred money into the designated account, after which his investment profit, as shown on the dedicated site, appeared to rise. Demands then escalated with statements such as "Following the teacher's [the celebrity's] instructions, you can earn even more," and he was defrauded of a total of approximately 63,000,000 yen (approx. USD 420,000).
Source: National Police Agency – SOS47 Special Fraud Countermeasures Page
With a legitimate, registered crypto asset exchange service provider, the deposit method and destination can always be confirmed through the official website or app. In contrast, when only the person you're talking to on LINE tells you the account or destination, it's hard to verify who's actually behind it, and you risk losing contact with them after you've sent the funds.
Be especially cautious if the transfer destination is a personal name, or if you're given a different account each time. Because a crypto asset transfer, once executed, is difficult to reverse, you shouldn't proceed if you can't confirm the legitimacy of the destination.
Additional Fees Such as "Taxes" or a "Security Deposit" Are Demanded at Withdrawal
Within LINE groups, it's common for victims to initially be shown what looks like a profit. In some cases, a small withdrawal is even allowed to go through, to build trust that funds can genuinely be withdrawn.
However, once the invested amount grows larger and the victim asks to withdraw, they may be told things like "a tax payment is required," "you can't withdraw without depositing a security deposit," or "a fee is needed to unfreeze the account." These additional fees may simply be a pretext to extract more money.
The victim was shown transactions in which the 1,000,000 yen (approx. USD 6,700) he had put in was reduced to zero, and an additional 800,000 yen (approx. USD 5,300) he added was shown as having grown to 7,200,000 yen (approx. USD 48,000) in the hands of the "investment group representative." He was then asked for a "technical fee" of 1,440,000 yen (approx. USD 9,600) to withdraw that 7,200,000 yen.
Source: Sanyo Shimbun Digital
The FSA has also warned that it receives many reports of consultations in which victims are asked, at the point of withdrawal, to make additional payments described as fees, a security deposit, or taxes. If you're asked to pay a fee upfront in order to withdraw your profits, don't send any more money—instead, consult the police or a consumer affairs center.
Warning Signs When Someone Recommends Crypto Investment in a LINE Group
If someone recommends a crypto investment in a LINE group, you shouldn't trust it immediately, even if the explanation sounds polished. That's because scammers can use explanations that are easy for beginners to follow, or that closely track real market information, in order to build trust.
What matters is not whether the other person's story sounds plausible, but whether there's anything unnatural about the destination for your funds or the way transactions are confirmed. If any of the following apply, you should stop and pause before sending anything.
You Were Invited by Someone Claiming to Be a Celebrity or Investor
If you were invited to a LINE group by someone claiming to be a celebrity or well-known investor, you should suspect impersonation. Even if the person's photo and name are being used, that alone doesn't prove it's really them.
Be especially cautious if the group isn't referenced on an official website or the person's own official social media. If the investment solicitation is proceeding entirely within LINE, it becomes harder to verify whether the other person actually exists.
All Investment Explanations and Payment Instructions Happen Only Inside LINE
It's dangerous if the explanation of the investment, account setup, app guidance, and deposit instructions are all completed entirely within LINE. With a legitimate financial service, you can check the terms of use, fees, registration information, and contact details on an official website.
Scams, on the other hand, sometimes try to confine everything to conversations on LINE to make it harder to verify from the outside. If you're told not to consult family or friends, that's also likely intended to prevent you from making a calm judgment.
You're Directed to a Business or Exchange Not Registered with the FSA
Operating a crypto asset exchange business in Japan requires registration with the FSA and the relevant Local Finance Bureau. Because of this, it's important to check whether the business or exchange (order-book exchange) you were directed to is actually registered (see: list of registered crypto asset exchange service providers).
That said, there are also impersonators who use the name of a registered provider. The FSA has explained that being registered alone is not a guarantee that an investment is safe. You should check not just the business name but also the official website's URL and contact information.
The Transfer Destination Is a Personal Name, Not a Corporate Account
Be especially cautious if the destination for your investment funds is a personal bank account. If the name of the person you're dealing with on LINE differs from the account holder's name, or if you're given a different personal account each time, the likelihood of a scam increases.
The same applies to crypto asset transfers. If you send crypto assets to an unfamiliar wallet address, it generally cannot be reversed once sent. If you can't confirm that the destination belongs to a legitimate service, you shouldn't send the funds.
You Can't Freely Withdraw Funds Even Though You're "Showing a Profit"
There are cases where, even though the app shows a profit, you're given a reason and stopped when you try to withdraw. You may be asked to pay taxes, a security deposit, a fee, or a "verification charge" first.
In this kind of situation, the profit being displayed may not actually exist. If you send additional funds out of a desire to recover your principal, the damage may only grow larger, so caution is essential.
How to Check for Crypto Asset LINE Group Scams Before It's Too Late
To avoid a crypto asset LINE group scam, it's important to verify the other party's claims using outside information, rather than trusting the explanation on its own. If you judge based only on what's said inside LINE, it's easy to be swept along by the group's atmosphere and the other person's words.
What you should check is the business's registration status, the information on its official website, the explanation of returns, and whether the destination for your funds makes sense. If anything seems even slightly off, don't rush into investing—consult someone before sending any money.
Check the Business Name Against the FSA's Registered Provider List
If you're introduced to a service claiming to be a registered crypto asset exchange service provider, check it against the FSA's list of registered crypto asset exchange service providers. You should avoid depositing funds or sending crypto assets to a business whose registration you cannot confirm.
That said, be careful of impersonators using a name similar to a registered provider's. Because fraudulent sites sometimes mimic an official site's URL and design, check not just the business name but also whether the official site's URL, address, and contact information all match up.
Verify Information via Official Websites and Apps
It's risky to use a URL or app link sent to you on LINE as-is, because it may lead to a fake site or fake app.
When checking, access the official website through a search engine, an official app store, or the FSA's registration information—not through a link someone sent you. It's wise to treat any link sent via LINE as inherently dangerous, and, as a rule, not click on it.
Also, even if you do end up clicking a link, if you're then asked for personal information or a recovery phrase, or prompted to send funds, never comply, no matter what.
Don't Trust Promises of High Returns or "Guaranteed" Profits
Crypto assets are subject to large price swings—they can rise sharply in a short period, but can also fall sharply. So explanations like "you're guaranteed to profit," "your principal won't decrease," or "you'll win if you just follow the teacher's instructions" shouldn't hold up in reality.
To begin with, it's basically implausible that a genuinely reproducible high-return investment opportunity would be shared with you, a stranger, through a LINE group. If information really offered a high probability of profit, there would be little reason for anyone to go out of their way to share it with an unspecified number of people.
Inside LINE groups, market commentary and success stories that sound professional are sometimes used to make the information appear trustworthy. But no matter how plausible the explanation sounds, it's not grounds for a guaranteed profit.
Be especially cautious if you're being rushed into a decision with phrases like "only now," "you'll lose out if you miss this timing," or "only a limited number of people can participate." If you send money without being able to verify the mechanics and risks yourself, it can lead to real harm.
If Anything Seems Even Slightly Suspicious, Don't Send Money
If something seems off, the most important thing is simply not to send any money. Because a crypto asset transfer is difficult to reverse once made, and even a bank transfer can be hard to recover, it's important to consult one of the resources below as soon as you're unsure. Key contact points include:
- FSA "Consultation Hotline for Fraudulent Investment Solicitations"
- For consultations about suspicious investment solicitations via social media or LINE, or if you're unsure whether to invest.
- Phone: 0570-050588
- IP phone: 03-6206-6066
- Hours: Weekdays 10:00–17:00 (Japan time)
- FSA "Financial Services User Consultation Office"
- Handles general consultations about financial services.
- Phone: 0570-016811
- IP phone: 03-5251-6811
- Hours: Weekdays 10:00–17:00 (Japan time)
- Consumer Hotline
- A nationwide number that connects you to a local consumer affairs consultation office for issues involving contracts or refunds.
- Phone: 188 (toll-free within Japan)
- Police Consultation Line
- For non-emergency matters you'd like to discuss with the police.
- Phone: #9110 (within Japan)
What to Do If You've Already Sent Crypto Assets Through a LINE Group Scam
If you've already sent crypto assets, it's important not to delete your correspondence with the other party and instead organize your evidence. Confronting the other party in anger or paying additional "fees" out of panic can make the situation worse.
Here, we introduce the steps you should take if you've sent crypto assets as part of a LINE group scam.
Save Your LINE Chat History and the Other Party's Account Information
If you've sent crypto assets within a LINE group, save your correspondence with the other party without deleting it.
Once you suspect a scam, your first instinct may be to block the other party right away. However, your LINE chat history and the other party's account information are important evidence for explaining the extent of the damage. Make sure you preserve the necessary information before blocking or leaving the group.
Information worth saving includes the following. It's also a good idea to take screenshots of any URLs or app names you were sent, the bank account, and the crypto asset destination address, to make them easier to reference later.
- The other party's account name
- Their profile picture
- Their LINE ID
- The group name
- The circumstances of how you were invited
- The details of the investment you were encouraged to make
- The messages instructing you to deposit or transfer funds
Also, note that LINE chat history can become harder to verify later if the other party deletes their account or changes their display name or profile picture. To make it easier to explain your situation when consulting the police or a consumer affairs center, save this information as soon as you notice something is wrong.
Organize Your Bank Transfer and Crypto Asset Transaction Records
If you've made a bank transfer or sent crypto assets, organize records that confirm the transfer actually took place.
For a bank transfer, check the following. If you still have your ATM receipt, your online banking transaction history, or your passbook entries, they'll make it easier to explain the situation when you consult someone.
- Transfer date
- Transfer amount
- Name of the recipient's financial institution
- Branch name
- Account number
- Account holder's name
If you sent crypto assets, save the date and time of the transfer, the type and quantity of the crypto asset sent, the destination address, and the transaction ID. A transaction ID is a number used to identify a transaction on the blockchain, and is important evidence confirming that the transfer actually occurred.
It's also worth organizing your records so that the destination account or address you were given on LINE clearly links up with your actual transfer or transaction records. This makes it easier to explain to the police, a consumer affairs center, or a financial institution when, from whom, and under what instructions you sent funds, and where they went.
Contact Your Bank or Crypto Asset Exchange Provider
If you've made a bank transfer or sent crypto assets, contact the bank or crypto asset exchange service provider you used.
If you made a bank transfer, contact the originating bank and tell them the transaction may involve fraud. Because the destination account may be being used for criminal activity, it's important to consult them as soon as possible—depending on the situation, the bank may be able to check the account or provide guidance.
If you sent crypto assets, contact the crypto asset exchange service provider you used to make the transfer. Once sent, crypto assets can't simply be reversed the way a bank transfer sometimes can be. Even so, you should still ask them to check your transfer history, confirm your account's security, and check for any unauthorized access.
If assets still remain in the same exchange account or wallet, you also need to take steps to prevent further damage. Change your password, confirm two-factor authentication, and check your login history for anything suspicious, so the other party can no longer move any of your remaining assets.
Consult the Police or a Consumer Affairs Center
If you suspect you've been scammed, consult the police or a consumer affairs center.
In crypto asset LINE group scams, the other party sometimes suddenly stops responding, or demands additional fees before letting you withdraw. Continuing to press them for a refund at this stage can lead to further payment demands.
To consult the police, you can go to your nearest police station, or, for a non-emergency matter, call the Police Consultation Line at #9110 (within Japan). Dialing #9110 connects you to the consultation desk of the police headquarters covering your area; a call to 110 is for cases requiring an emergency response.
A consumer affairs center is also an option for consultations about refunds or contract disputes. Calling the Consumer Hotline at 188 (within Japan) connects you to your nearest consumer affairs consultation office.
If you're still at the stage of feeling suspicious before sending any funds, you can also check the FSA's "Consultation Hotline for Fraudulent Investment Solicitations." The phone number is 0570-050588, or 03-6206-6066 from an IP phone. Even while you're still hesitating over an investment solicitation, consulting an official contact point may help you avoid becoming a victim.
Beware of Secondary Scams Promising to Recover Your Losses
You should also be cautious of secondary scams that prey on your desire to recover what you've lost, and demand further payments.
After you've sent crypto assets, someone may reach out claiming "we can recover your losses," "we can trace the destination," or "as specialists, we can get your money back." While this may look like a rescue at first glance, be careful if they ask you to pay a fee, an investigation charge, or a retainer up front.
The FSA has also warned that some of the people who approach victims claiming to help recover losses are actually part of the fraud group. If you're contacted by someone promising to recover your losses, the most important thing is not to pay them on the spot. Consult an official or professional contact point—such as the police, a consumer affairs center, or a bar association—and have a third party verify the other person's explanation before making any decision.
The Key to Avoiding Crypto Asset LINE Group Scams: Stop Before You Send Money
Crypto asset LINE group scams often begin with a social media ad or an account impersonating a public figure, which leads the victim into a LINE group. Inside the group, accounts posing as an investment "teacher," an "assistant," and profitable participants appear one after another, gradually easing the victim's concerns about investing.
However, it's dangerous if you're asked to transfer funds to a personal bank account, register with an unknown exchange, send crypto assets to an unfamiliar wallet address, or pay "taxes" or a "security deposit" at the point of withdrawal. If anything seems even slightly suspicious, don't send any money—consult the FSA's consultation office, a consumer affairs center, or the police.
Even if you've already sent money, don't pay any additional fees, and make sure to preserve your LINE chat history and transfer records. Because crypto asset transfers are difficult to reverse once made, it's important to consult a third party as early as possible to avoid the damage growing any further.
This article is for informational purposes only and does not constitute financial or investment advice. Please consult a qualified professional before making investment decisions.
