Limits on ATM withdrawals aimed at combating elder fraud

TOKYO >> Japan’s National Police Agency is considering limiting ATM withdrawals and transfers to a total of 300,000 yen (about $2,090) per day for people age 75 and older in response to a sharp increase of special fraud victims, Japan News has learned.

The NPA is coordinating with the Japanese Bankers Association and other entities to revise regulations related to a law aimed at preventing the transfer of criminal proceeds.

Currently, each financial institution sets its own ATM usage limits, including, for example, 500,000 yen withdrawals per day and 1 million yen transfers per day. This would be the first time a uniform limit is imposed across financial institutions.

Criminal organizations have been engaging in telephone fraud for a long time, luring primarily older people to make ATMs transfers to designated accounts. The damage has become more serious each year, with last year’s preliminary special fraud losses increasing 1.6 times from the previous year to about 72.1 billion yen, the worst on record.

The elderly were particularly targeted, with 9,415 older adults comprising about 45% of last year’s 20,951 victims, excluding corporations.

Following the sharp rise in special fraud victims, the government announced in June that it would promote the ATM restrictions and boost financial institutions’ monitoring of elder accounts.

However, some banking institutions are concerned about the increased burden on their teller operations, and there is concern over the inconvenience the limits would bring. In response to the concerns, the NPA’s 300,000 yen cap per day takes into account pension payment amounts and other factors. It is also considering exempting sole proprietors and others who receive and make large payments.

“We’ll continue to discuss the matter so that the users’ convenience can be taken into consideration and the burden on financial institutions can be reduced,” a senior police official said.

Meanwhile, the Osaka Prefectural Assembly recently passed and enacted an amendment to an ordinance that now limits ATM transfers to 100,000 yen per day for those 70 and older who have not made transfers through the machines in the past three years.

The revised ordinance also bans older people from using an ATM while talking on a cellphone and requires businesses to enforce the new rule. It is the first time in Japan that a ban is being placed on phone calls.