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.

FinTrak IFRS solution in Congo DRC

A day when FinTrak Financial Reporting solution was presented to the banking industry in Congo DRC (Wednesday March 30, 2016) came with attendance of representatives of banks in Congo DRC.

Congo is lighted up with the awareness of FinTrak Financial Reporting solution (IFRS).

(pictures of the event).IMG_4893 IMG_4894 IMG_4900 IMG_4908 IMG_4913 IMG_4917 IMG_4922 IMG_4924 IMG_4928 IMG_4929 IMG_4930 IMG_4932 IMG_4933 IMG_4934 IMG_4936 IMG_4960 IMG_4993 IMG_4996 IMG_4997 IMG_4998 IMG_4999

 

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IFRS Adoption in Japan: A Global Way Forward

“The voluntary nature of IFRS usage in Japan means that this report provides very useful insight into the cost/benefit evaluation undertaken by major Japanese companies before deciding to proceed with IFRS. It is encouraging to see so many Japanese companies recognising the substantial benefits that come with using IFRS as the globally recognised set of accounting standards.”

These were the words of Hans Hoogervorst, Chairman of the International Accounting Standards Board, commenting on the press release by Japanese FSA on the Publication of ‘IFRS Adoption Report’.

 Since 2010, many Japanese companies have been reporting using IFRS as issued by the IASB. The press release from the Japanese Financial Services Agency (FSA) highlighted a study that tracked the number of Japanese firms that have chosen to report using IFRS since 2010. As of March 2015, the number stood at 75.  In the last two years, the number of these Japanese companies has actually doubled. The number is expected to increase to more than 100 companies by the end of 2015, representing greater than 20% of total market capitalisation.

 However, the motivating factors for companies to choosing to adopt IFRS voluntarily include:

  • Efficiency in business management
  • Enhanced comparability with competitors
  • Better communication with international investors
  • Better describes business performance
  • Facilitates greater access to international finance

 

View the Japanese FSA on the Publication of ‘IFRS Adoption Report’.