A recent report reveals that digital currencies endorsed by Japanese local governments are being used in phishing schemes disguised as reward programs to steal funds. In Toyonaka City, seven Vietnamese individuals were arrested for using stolen credit card information to acquire 'machikane points,' the city's currency. These suspects exploited a rewards program offering up to ¥2,500 for spending ¥50,000 with the same credit card. Despite the VKM police's silence, the group managed to fraudulently obtain nearly half a million dollars in just two days. Similar scams have been reported in other regions like Kumagaya in Saitama Prefecture. The surge in local digital currencies has attracted phishing groups, prompting authorities to urge local governments to enhance identity verification and limit credit card usage to cardholders. However, preventing such fraud remains a challenge. Read more AI-generated news on: https://app.chaingpt.org/news