Japan Major Banks Accelerating Shift to IC Chip Verification
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 a...
Tokyo, October 21 (Jiji Press)--Japan's major banks are swiftly transitioning their online identity verification procedures for new account applicants to scanning integrated circuit (IC) chip-embedded cards, a shift driven by increasing concerns over data breaches. In April 2027, Japan will introduce stricter regulations as part of a revised law aimed at preventing the transfer of illicit funds.
These regulations will mandate financial institutions to verify identities through data extracted from IC chips embedded in My Number or other ID cards, while prohibiting the use of images from driver's licenses or other documents.
This regulatory change has prompted financial institutions to expedite the modification of their online identity verification methods. On Monday, Mizuho Bank announced it was discontinuing its practice of relying on license or other photo images for remote identity verification of applicants, opting instead to utilize IC chip data from My Number cards or other such documents.
The bank's decision was prompted by a series of recent data breaches, including a cyberattack on Times Car, a vehicle-sharing service operated by an affiliate of Park24 Co. The attack resulted in the exposure of stored images of driver's licenses for over one million current and former users, underscoring the urgent need for enhanced security measures in online identity verification processes.
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