Japan raises security after ¥1.8bn taken from ATMs

Japan raises security after ¥1.8bn taken from ATMs » Banking Technology

Fintech in Japan is not so calm at present

Japan’s Seven Bank has improved security for ATM withdrawals following Japanese banks losing JPY 1.8 billion ($16.8 million) through fake overseas cards.

Banks across the island nation are rushing to deal with the fraud, and Seven Bank which operates ATMs in the 7-Eleven convenience store chain, has cut its withdrawal limit to JPY 50,000 ($468) from JPY 100,000 ($937) for customers using non-Japanese cards.

Seven Bank says it has “complied with EMV regulations, globally accepted security standards, and equipped a system that detects criminal transactions so as to prevent crimes committed on our ATMs”.

It is not alone. E-net, a joint-banking service which operates about 13,300 ATMs across the country, reduced its withdrawal limit to ¥40,000 ($375) from ¥200,000 ($1,874) for non-Japanese cards.

According to the Japanese media and Associated Press; the “illegal withdrawals were made using fake cards of a South African bank in just a few hours” on 15 May at more than 1,000 ATMs in 17 prefectures.

Japanese police have arrested three suspects so far, one in Tokyo and two in Aichi Prefecture.

Associated Press and Japan’s NHK say in the latest development, “police found a manual with detailed instructions on how to use fake cards to withdraw money from ATMs”.

Masatoshi Ogihara, a Seven Bank spokesman, says the bank is “strengthening monitoring and co-operation with police” but declined to give specifics for “security reasons”.

Ogihara adds that China Union Pay cardholders are now limited to JPY 50,000 ($468). Previously, it was JPY 200,000 ($1,874).

On top of all these developments, money was also taken at Japan Post Bank ATMs.

Hayato Kayanuma, a spokesman for Japan Post Bank, says it is “working on plans to deal with the fraud but has not lowered the withdrawal limit”. He adds the plans would not affect cards issued in Japan.

Goldman Sachs to underpin new digital bank with Infosys tech



Goldman Sachs moves into retail banking with new digital bank, GS Bank. Infosys to provide tech.

Goldman Sachs has recently launched a new digital bank, GS Bank. It accepts deposits from consumers and institutional clients, starting from just $1.

Goldman Sachs is understood to be working with Infosys and its EdgeVerve division on this project, with the vendor’s e-Finacle platform as the underlying tech for GS Bank.

Infosys’ spokesperson provided a “no comment” to Banking Technology.

GS Bank is a New York State-chartered bank. It stems from the Goldman Sachs’ acquisition of the online banking business of General Electric, GE Capital Bank.

The deal was completed in April 2016. GE Capital Bank came with nearly $17 billion of deposits and 140,000 retail customers. The terms of the deal were not disclosed, but a person familiar with the matter was quoted in the press saying that the price was immaterial to Goldman Sachs.

More significantly, this takeover represents Goldman Sachs’ move into the retail banking space – a departure for the bank that has traditionally catered to the high net-worth segment.

Infosys in the US
Infosys is keen to gain a strong foothold in the US banking software market and is known to be bidding for a number of projects at regional and super-regional banks (with assets north of $20 billion).

Amit Dua, vice-president and regional head at Infosys, comments that the US banks want to “break the shackles of legacy outsourcers”.

The vendor already has two customers in the US. These are Discover Financial Services, which has replaced its legacy core banking platform supplied by Fiserv with Finacle; and Eastern Bank, which has ousted FIS’s channel banking platform in favour of e-Finacle.

Last year, Infosys also teamed up with Verizon, to offer the Finacle suite as a Software-as-a-Service (SaaS) model on Verizon Cloud. The offering is aimed at the US community banks and financial institutions.