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Hitachi seeks to end new trend in ATM fraud

November 1, 2016

Even with their reputation for fastidious manners, it seems unlikely the Japanese would take serious issue with an ATM user talking on a mobile phone while completing a transaction.

But Japanese ATM-maker Hitachi Ltd. does, according to a report by Bloomberg — although the company is addressing a problem of crime, not courtesy.

In a disturbing trend, fraudsters are targeting elderly Japanese citizens and posing as a relative in dire need of funds or a government official demanding immediate payment of a fee.

Callers instruct their victims to send money via ATM transfer and helpfully offer to walk them through the process by phone right at the terminal.

According to Japan's National Policy Agency, losses from this type of "It's me" fraud totaled $252 million between January and August.

The report said that to help prevent the crime, Hitachi has developed technology that disables the funds transfer option at an ATM if it detects that the user is speaking on a mobile phone.