Japanese Bankers Association draws compensation plan for Internet banking thefts

The Japanese Bankers Association is reportedly drafting policy guidelines designed to address compensation for businesses, which sustained losses due to internet banking theft.

The Japanese Bankers Association is reportedly drafting policy guidelines designed to address compensation for businesses which have sustained losses due to internet banking theft.

Japanese Bankers Association chairman Nobuyuki Hirano was quoted by Jiji Press as saying that the banking industry group will discuss the issue at a working group that includes outside experts and hopes to draw a conclusion before the summer holiday period, as reported by the japan-news.

Hirano further told the publication that the association will announce the number of cases of Internet banking theft suffered by companies during the period from January to March by late May 2014.

The association wants to know the intent of individual banks as to whether they are willing to compensate affected parties in the event of such internet frauds.

In addition, the association will request banks to strengthen the security of their Internet banking services through the introduction of integrated circuit card-type electronic certificates, adoption of one-off passwords or other authentication methods, among others.

The association will also ask Internet banking customers to modernise software, including operating systems and web browsers, and change passwords regularly.