News

Japan's regional banks consider anti-fraud measures, including chip cards

January 31, 2005

The Japan Times: More than 80 percent of the nation's regional banks are considering switching from magnetic cash cards to ones embedded with IC chips to make counterfeiting more difficult.

A Kyodo News survey shows that 14 of the 112 responding regional banks have suffered damage from counterfeit bank cards.

But the survey found that 47 banks, or more than 40 percent, set no upper limit on the amount of money that can be withdrawn from ATMs, making it difficult to protect deposits.

The survey was conducted on 64 regional and 48 "second-tier" regional banks.

Major banks have begun adopting such measures as issuing ATM cards with chips or with a biometrics capability that identifies holders through palm vein patterns. Though regional banks are likely to follow suit, only a small number have come up with specific measures. The substantial costs required to introduce new steps is a major factor.

Eighty-five regional banks said they are considering setting new upper limits on withdrawals or enabling users to set limits themselves.