WARNING ON RISING MOTOR VEHICLE FRAUD IN JAPAN

This Embassy has recently been inundated by requests from many Kenyans seeking assistance to recover monies allegedly paid to unscrupulous Japanese Companies for the purchase of second hand Motor vehicles. In trying to assist the unfortunate victims, the Mission has uncovered the following: *. While Japanese car dealers generally used to be known as trust worthy and reliable this may no longer be true. Unfortunately, the used car export business in Japan has been invaded by some criminals. *. The global economic difficulties and cut- throat competition in the industry have translated into low profitability and an increase in illegal exports. These include the sale of stolen vehicles, illegally rebuilt units or even re-modeled vehicles. The tendency thrives on the known reputation for excellent quality and reasonable prices associated with Japanese used motor vehicles. *. Kenya is clearly amongst the targeted and lucrative markets for unscrupulous internet- based motor vehicle fraudsters. This may be informed by the size of the Market, the 8-year Rule, and the demand by citizens for cheaper cars. Dishonest individuals have exploited the internet marketing & advertising model to lure un-suspecting customers from Kenya including senior government officials. *. Unfortunately, most victims have in the past suffered silently and thislack of publicityhas served the fraudsters very well. They are assured of another opportunity to defraud one victim after another without the fear of detection. *. In trying to track down the bogus used cars exporters, the Mission has found some interesting trends. Firstly, these heartless vendors are hard to trace as they change their telephone numbers immediately they sense danger and will not respond to email enquiries. *. Since the transactions are mostly transacted via on-line via internet; the fraudsters need no office or even a sale yard. The vehicles displayed on their websites are merely Motor vehicle pictures taken from some legitimate yards or the many vehicle auctions. They then use computer graphics to display their banners over the Fake yards or the cars themselves. *. Wirth regard to their Bank accounts to which Kenyan victims have wired their monies, the Mission has found that such accounts are phantom accounts opened solely for purposes of fraud for a particular period of time. You cannot easily track down these master criminals because Japanese Banks can accommodate ATM withdrawals of up to 1,000,000 Yen or more than Kshs. 1,000,000). Since they use fake names and identities to open the accounts it’s hardly possible for one to trace them. *. According to available records, hundreds of Kenyan might have fallen into this trap annually and something must be done urgently to stop the trend. *. Our engagements with the local police, government departments and the Japan Used Motor Vehicle Exporters Association(JUMVEA)have proved that once paid to the criminals, it is almost impossible to trace the perpetrators due to the legal technicalities here. *. The Police and related agencies have been categorical that the Japanese law classifies the offence of defrauding a client in a business deal as a civil offence. This means that the Metropolitan Police has no powers of arrest or prosecution for such offences. Such litigation is left to hired professional lawyers. *. In view of the above, it’s anybody’s guess how many Kenyans can afford to travel to Japan and to hire a lawyer to pursue USD 10,000. Even if the lawyer is hired, what are the chances that the criminal can be found when the only address available on the websites ends up being a public car park, a garden or an empty space? Way Forward In view of the above this mission recommends the following: I. Potential vehicle importers should be extremely cautious before ordering a Motor vehicle from Japan via internet. II. All importers should be weary of super bargains or unusually cheap vehicles- for the sweeter the deal the stronger the pain. III. Before buying a Motor vehicle online, kindly check from http://www.jumvea.or.jp/if the online vendor is a legally registered business in Japan. Members of theJapan Used Motor Vehicle Exporters Association (JUMVEA)are legally registered & licenced Used Car Dealers, are vetted for legality and credibility and are committed by Association values. IV. In case of any further advice or enquiries, kindly feel free to contact us at the Kenya Embassy- Tokyo using our email address: ketcomjp@kenyarep-jp.comor pkndungu@kenyarep- jp.com BE WISE! BE WISE!!