Fraud and customer harassment in business settings share a common ground in exploiting ambiguity to target employees and customers for gain. According to the Japan Response Evolution Research Association, fraudsters make plausible complaints, such as “there was a hair in my food” or “the product I purchased was broken,” to demand unfair money or compensation, a tactic similar to customer harassment, where individuals may make unreasonable demands or behave inappropriately towards staff.
Background And History
The concept of customer harassment, also known as “kasuhara” in Japan, has evolved over time, with the term being recognized as a form of harassment that can have serious consequences for employees and businesses. Similarly, claim fraud has been a persistent issue, with cases of people being arrested for swindling money using such methods frequently reported. The “Three Realities Principle” (Sangenshugi) has been proposed as a way to prevent damage from such fraudulent claims, by making judgments based on the “actual site,” “actual object,” and “actual situation.”
How It Works
Fraudsters take advantage of the ambiguity in complaints and policies to make unreasonable demands, and businesses without clear response policies and standards are more vulnerable to such tactics. The same principle applies to customer harassment, where individuals may exploit the lack of clear guidelines and procedures to behave inappropriately towards staff. Companies and stores should clarify their response policies and predetermine what they “can do” and “cannot do” rather than making decisions on the fly, to minimize the risk of falling victim to fraud and harassment.
Numbers
According to Bridget Phillipson, 25% of those who have experienced harassment say it was at work, highlighting the prevalence of the issue.
What It Means Now
The overlap between fraud and customer harassment has significant implications for businesses and employees. Employers will increasingly need to demonstrate that they have taken all reasonable steps to prevent harassment, including sexual harassment, and that they have actively identified harassment risks and taken preventative action. The Employment Rights Act 2025 will strengthen the existing duty on employers to prevent sexual harassment, and introduce a new duty to take all reasonable steps to prevent third-party harassment.
What Comes Next
Regulatory changes and prevention strategies will be crucial in addressing the issue of fraud and customer harassment. The UK government’s plans to introduce new protections for workers facing customer harassment, including stronger safeguards for staff in shops, restaurants, and call centers, are a step in the right direction. Employers will need to review their policies and procedures to ensure they are taking all reasonable steps to prevent harassment, and that they have clear guidelines and procedures in place to respond to incidents. As of 30 October 2026, the Employment Rights Act 2025 will come into effect, marking a significant shift in emphasis from compliance to evidence, and employers will need to be prepared to demonstrate their commitment to preventing harassment.
Sources
- What Fraud and Customer Harassment Have in Common｜日本対応進化研究会
- Sexual harassment
- Britain plans new protections for workers facing customer harassment
- October 2026 harassment reforms: why employers need to move from compliance to evidence | TLT LLP
- Springfield police reports: Customer at Halloween shop reports inappropriate touching
- Bridget Phillipson: Too many workers suffer sexual harassment – we're taking action | Framing Analysis
Photo: Rexlperry (CC BY-SA 4.0)
