Eight leading Japanese banks have formalised a new arrangement with the National Police Agency (NPA) to share data on suspicious accounts, aiming to curb a sharp rise in special fraud cases, The Japan Times reports. The signatories include Mizuho Bank, MUFG Bank, Sumitomo Mitsui Banking Corporation, Sumitomo Mitsui Trust Bank, and four Resona Holdings banks. This builds on previous partnerships formed earlier in the year by Japan Post Bank and PayPay Bank.

Special fraud schemes often involve criminals tricking victims into increasing withdrawal limits and transferring significant amounts repeatedly. Banks use internal systems to detect unusually large or irregular transactions, and the new agreement allows this intelligence to be passed directly to national and regional police forces. This bypasses the slower, traditional route via the Financial Services Agency.

Police can then take immediate action—warning potential victims and pursuing those behind the scams. This coordinated approach follows earlier initiatives by regional banks and is already showing results. Between January and May, nearly 70% of the 1,866 accounts flagged were linked to fraud victims; 45 were used by fraud rings themselves.

The urgency is clear. Fraud losses in 2024 have hit a record JPY71.88bn (roughly $500mn), with tactics ranging from impersonating officials to emotional manipulation via social media. Romance scams alone caused JPY127.19bn in losses last year.

Allowing banks to share suspicious account data directly with the police marks a significant change from the earlier, more bureaucratic process. It has the potential to speed up responses and prevent further harm to victims. However, as fraud methods continue to evolve through digital channels and social platforms, the success of this move will depend on whether it is reinforced by stronger cybersecurity measures and sustained public education efforts.

© 2025 bne IntelliNews, source Magazine