Tokyo, Oct. 21 (Jiji Press)–Major Japanese banks are increasingly shifting their identity verification methods for applicants to open accounts online to scanning of integrated circuit chip-embedded cards, following a series of data breaches. Japan will enforce in April 2027 new regulations under the revised law to prevent the transfer of criminal proceeds, requiring financial institutions and other entities to verify identities in such online procedures by using data from IC chips embedded in My Number or other ID cards, while banning the use of images of driver’s licenses or other documents. This prompted financial institutions to change their online identity verification methods. Following the recent series of data breaches, their moves accelerated further. On Monday, Mizuho Bank scrapped its practice of using license or other photo images when remotely checking the identities of applicants to open accounts, switching to the use of IC chip data in My Number or other cards. The bank acted in response to incidents including a cyberattack on the Times Car vehicle-sharing service run by an affiliate of Park24 Co., that exposed stored images of driver’s licenses of more than one million current and former users. Among other major banks, Sumitomo Mitsui Trust Bank stopped verifying identities using photos of driver’s licenses and other documents in March, while MUFG Bank switched to IC chip verification in May. Sumitomo Mitsui Banking Corp. plans to discontinue its photo-based verification. Resona Holdings Inc. is considering whether to implement such a transition earlier than planned across its four banking subsidiaries, an official said. The Financial Services Agency has urged financial institutions to review their cybersecurity measures amid repeated unauthorized access incidents and recommended an early transition to IC chip-based identity verification. END [Copyright The Jiji Press, Ltd.]
