Shigeru Yotoriyama, a retired senior police commissioner who once led Japan’s national division investigating fraud and scams, explained how Japan has curbed organised syndicates that often target the elderly. One of the most effective measures has been capping ATM withdrawals and transfers for older citizens. Over 280 banks lowered daily withdrawal limits for elderly customers, while more than 400 suspended ATM transfers for seniors who had not used such services in years.
In Osaka, new rules coming into force this October will restrict ATM transfers for those aged 70 and above to ¥100,000 (around RM2,850) daily, unless they are frequent users. The city has also banned residents over 65 from using ATMs while on a phone call, since scammers often manipulate victims during such conversations. Nationwide, Japanese authorities are considering even stricter caps of ¥300,000 daily.
Identity verification has also been strengthened. Opening a bank account or applying for a credit card now requires scanning the microchip in official identity cards or driver’s licences, preventing stolen identities from being misused. The government also plans to expand this requirement to data-only SIM cards and dating apps, platforms frequently exploited in romance scams. Reports showed nearly a third of online romance scam victims in Japan were first approached via dating apps.
Japan’s banks, working with police, immediately freeze accounts suspected of being linked to fraud. Even without conclusive evidence, flagged accounts are blocked, and balances are redistributed to scam victims under a legal scheme in place for more than 15 years. In fiscal 2023 alone, over ¥24 billion (US$16 million) was returned to victims.
Telecommunications providers are equally involved. Thousands of fraud-linked phone numbers—mobile, landline, and VoIP—have been suspended. Since most recent fraud calls used international numbers, the public, particularly the elderly, is encouraged to block overseas calls unless expected.
Social media and app platforms are also compelled under Japan’s Information Distribution Platform Act to remove fraudulent accounts and harmful content swiftly. Even cryptocurrency exchanges are monitored, with unregistered operators removed from app stores at the request of regulators.
Japan’s coordinated crackdown highlights the importance of combining regulation, technology, and industry cooperation. For Malaysia, adopting similar safeguards could play a critical role in slowing the surge of scams that continues to drain billions from its citizens each year.
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