Global Voice Column

Point: Laws to protect against counterfeiting and credit card fraud

Advice: There has been a recent increase in the number of credit card fraud cases and cases involving making bank withdrawals with stolen cash cards. Last year in an Upper House plenary session a law was passed that placed the liability of compensation in cases of fraud and unauthorized withdrawals on the shoulders of banks and financial institutions.

The law, going into effect in February of this year, will target victims of fraud apply to financial institutions dealing in deposits and savings such as banks, credit unions and the Japan Post.

In order for compensation to be awarded, the financial institution must report the case of counterfeit or fraud within 30 days of its occurrence.

However, compensation will not be awarded in cases where the victim intentionally told another person their PIN number, wrote numbers on their cards or other such negligence.

Also, only 75% compensation will be given in cases where people neglected to change their number despite repeated requests from their financial institution because the number included numbers from their birth date, address or telephone number.

Cases of counterfeit cards, along with other such gross negligence as telling another your PIN number, will not be compensated.

Victims of unauthorized withdrawals due to stolen bank books and internet shopping are currently not covered by the legislation so please exercise due caution.