Japan’s Financial Services Agency (FSA) has asked banks to stop using driver's license photos for online or mail-based ID verification when opening bank accounts. This is due to the rising number of fraud cases, where fake accounts are created and used in scams.
A law revision passed in June 2024 (the Act on Prevention of Transfer of Criminal Proceeds) already requires this method to end by April 2027, but the FSA wants it stopped sooner.
Instead, the FSA is encouraging the use of My Number cards, which have stronger ID protection thanks to their IC chips.
This stricter ID rule applies to banks, securities firms, credit card companies, and other financial service providers. The FSA told the industry to act “as quickly as possible”, since updating systems to read My Number cards will take time and money.
Traditionally, most people opened accounts in person at bank branches, where staff checked ID directly. As services moved online, the same approach—checking a photo of a driver's license—was carried over. But now, stronger digital ID methods are needed to fight fraud.
by MagazineKey4532