Japan Grapples with Record-High Credit Card Fraud: ¥54.1 Billion in Damages in 2023

Staggering Figures Revealed by Ministry of Economy, Trade and Industry

A recent meeting aimed at tackling the growing issue of credit card fraud has revealed a shocking revelation: unauthorized credit card use resulted in a record-high damage of ¥54.1 billion last year.

Strengthening Measures to Prevent Losses

The ministry is taking steps to strengthen measures to prevent such losses and ensure safe transactions. Representatives from six major credit card companies, including JCB and Sumitomo Mitsui Card, attended the inaugural meeting to discuss strategies for combating unauthorized use.

New System to Implement by Fiscal 2024

To curb this problem, the ministry is urging e-commerce stores that accept credit card payments to implement a new system by fiscal 2024. Under this system:

• Users will receive a one-time password for identity verification whenever suspicious activity is detected.
• The effectiveness of this measure will be reviewed at future meetings.

Concerns Over Credit Card Security Continue to Mount

According to a recent survey by the Japan Consumer Credit Association, the ratio of damage to total credit card settlement amount in 2023 reached its highest level in at least five years. As concerns over credit card security continue to mount, the government and industry stakeholders are scrambling to find solutions to this growing problem.

Conclusion

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The revelation of record-high credit card fraud in Japan highlights the urgent need for stronger measures to prevent losses and ensure safe transactions. The implementation of a new system by fiscal 2024 is a crucial step forward in combating unauthorized use, and its effectiveness will be closely monitored in future meetings.