The popularity of “spot work” staffing arrangements in Japan has led to an increase in fraudulent schemes targeting operators of related platforms. Concerns are growing that these scams, where platform app operators pay wages to spot workers on behalf of employers but cannot collect the money later, may become more widespread. The Japan Spot Work Association, which represents platform operators, reported that as of last month, around 25 million people were registered with its four main member firms and Mercari Hallo, a new service launched by flea market app operator Mercari Inc. These platform operators pay salaries to workers on the day of work and collect the amount plus commission from employers at the end of each month.
In these scams, individuals posing as employers post fake job openings and conspirators apply for these jobs using false work records to receive salary payments from platform operators. Several cases have been discovered since late last year. Last month, police in Osaka arrested four people for allegedly defrauding a platform operator of approximately ¥680,000 ($6,200). Investigators believe that the total amount of damage caused by this group is at least ¥4.3 million ($39,000).
To prevent falling victim to fraud, platform operators are taking measures such as requiring employers and workers to verify their identities through personal identification cards and driving licenses. However, it takes time to detect fraud and determine whether non-payment by employers is due to malice or poor business conditions.
Operators are also conducting credit checks on businesses but this method is not effective for individual business owners. The association official stated that each operator is increasing patrols for suspicious job postings and plans are underway to enhance information-sharing among operators.
Major industry player Timee Inc.’s priority is ensuring user safety and security. The company intends to implement measures against scams based on government and police policies.