Digital currencies managed by local governments in Japan are increasingly being exploited by fraudsters, and investigative authorities are calling for stronger security measures.

Cases of fraudsters using credit card information stolen through phishing to obtain local digital currencies have been confirmed nationwide. They are believed to be targeting such currencies for the rewards that come with purchasing or making payments in the currencies. Reward rates sometimes exceed 10%.

On Nov. 5, police in Osaka Prefecture arrested seven Vietnamese nationals in their 20s to 40s for allegedly fraudulently obtaining "machikane point," the digital currency of the Osaka city of Toyonaka that can be used at local businesses.