FSA Urges Stronger Safety Measures for Payment Services

Politics

Tokyo, Sept. 15 (Jiji Press)--Japan's Financial Services Agency on Tuesday called on payment service providers and banks to beef up safety measures, including user verification, in the wake of hacks that have led to fraudulent bank deposit withdrawals through NTT Docomo Inc.'s <9437> e-money service.

They were urged to check if there is vulnerability in user identification and other systems, and to report to the FSA if problems are found and suspend allowing users to transfer money from their bank accounts to the affected payment services until the flaws are fixed.

The service operators and banks were also asked to quickly investigate related damage and offer consultations to customers who fell victim to the hacks.

Fraudulent deposit withdrawals have occurred through not only the Docomo Koza service of the major Japanese mobile phone operator but also PayPay, an online payment service operated by an affiliate of technology investor SoftBank Group Corp. <9984> and Kyash, an up-and-coming payment service platform.

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