Japan Considers Limiting ATM Withdrawals for Seniors to Combat Fraud

Japan Considers Limiting ATM Withdrawals for Seniors to Combat Fraud

Japan's National Police Agency is proposing to limit ATM withdrawals and transfers for individuals aged 75 and older to 300,000 yen (around $1,990) per day. This measure aims to combat the growing issue of "special fraud," often carried out over phone calls, which disproportionately targets seniors.

Currently, financial institutions in Japan voluntarily set withdrawal and transfer limits, typically at 500,000 or 1,000,000 yen. However, the police believe that a mandatory limit is necessary to effectively protect seniors from falling victim to fraudsters who lure them to ATMs to send money.

The proposed limit of 300,000 yen takes into account factors such as pension distribution amounts, ensuring that seniors have access to sufficient funds for their daily needs. However, concerns exist about the potential inconvenience this may cause users and the increased burden on financial institutions.

The police plan to discuss potential exceptions for individuals such as independent business operators who require higher transaction amounts. They are also coordinating with organizations like the Japanese Bankers Association to ensure a smooth implementation of the proposed regulations.

Public opinion will be solicited before the enforcement regulations of the Act on Prevention of Transfer of Criminal Proceeds are amended. This measure is part of a broader effort by the Japanese government to combat special fraud, which has reached record-high levels in recent years.

In 2024, special fraud losses in Japan were estimated at 72.1 billion yen (roughly $480 million), a 1.6-fold increase from the previous year. Among the 20,951 victims excluding corporations, about 45% were aged 75 and older. This highlights the urgent need for effective measures to protect vulnerable populations from this type of crime.