E-Money Hacks Clouding Regional Banks' IT Strategies

Economy

Tokyo, Sept. 29 (Jiji Press)--Hacks that have led to fraudulent bank deposit withdrawals through Japanese mobile carrier NTT Docomo Inc.'s <9437> e-money service have cast dark clouds over the information technology-related strategies of the country's regional banks.

With regional banks facing a severe business environment due to ultra-low interest rates and other factors, they have been mulling ways to boost profitability through the use of IT.

The hacks, however, exposed their lack of knowhow on security measures.

As there is a limit to what individual regional banks can do with regard to beefing up security, observers say the hacking incident may prompt industry reorganization.

Of the 11 partner banks for the "Docomo Koza" e-money service that were affected by the latest incident, nine were regional banks.

[Copyright The Jiji Press, Ltd.]

Jiji Press