Customer Protection
Customer Protection
The Bank has taken measures to protect customers so that that they are able to use our services securely.
Providing Customer-oriented Information and Consulting Services
In 2019, the Bank announced that a violation of its internal rules took place involving negligence in obtaining administrative approval for "pre-solicitation" in regard to the sale of investment trusts to elderly customers over seventy years of age. In response to the incident, we have reestablished our focus on being a customer-oriented business and are continuing to implement initiatives that allow our customers to use our services more securely.
Related Information
Results of response to improper handling of investment trusts (Japanese version only)
Employee Training
We view ensuring customer-oriented business operations and compliance (such as observing laws and regulations) as an important management issue and we are conducting compliance training for all employees.
In FY2021/3, we strengthened our training for customer satisfaction (CS) aimed at our elderly customers. Specifically, we carried out training on how to provide service for elderly customers for our CS Promotion Leaders working at each of our branches. We also outlined points on providing customer service to the elderly for employees such as those who will become financial consultants.
Explanations on the purpose of rules concerning investment trusts for the elderly were also added to our various types of training for employees responsible for the sale of these services, and we expanded the contents of the training. To ensure proper conduct, we also implemented methods such as training via e-learning about the appropriate sale of investment trusts.
Expansion of customer sales tools
In FY2021/3, we revised the contents of our pamphlet for elderly customers so that they could more securely purchase asset management products.
Specifically, in addition to amending the pamphlet’s information so that elderly customers could better understand the necessity of asset management, we made changes to the design such as enlarging characters so that they could be more easily visible for elderly customers.
Implementation of follow-up services
Since FY2020/3, JAPAN POST BANK and Post Office employees have continued to provide-follow up services for all elderly customers using investment trusts.
Introduction of Senior Life Advisors
To provide high-quality and courteous service to our elderly customers, we are placing senior life advisors at some of our direct branches.
Reviewed sales targets and personnel evaluation systems
In order to advance customer-oriented sales, in FY2022/3 we thoroughly revised sales targets and personnel evaluation systems so that they would place greater emphasis on "sales quality" over "sales results," and "customer-oriented perspectives" over "product-oriented perspectives."
Reviewed sales targets and personnel evaluation systems
Strengthening customer-oriented business operations
To thoroughly implement customer-orientated business operations, in FY2020/3 we formed the Service Improvement Committee, chaired by the President and Representative Executive Officer. Furthermore, in FY2021/3 we organized a management system for customer service by establishing the Customer Satisfaction Department, which is responsible for the centralized reception of customer complaints and inquiries.
Related Information
Privacy Protection Measures
Having recognized that protecting personal data, including specific personal information and Individual Numbers is vital to offering services that can achieve a high degree of customer satisfaction, the Bank has established a privacy policy and conducts business operations based on this policy.
The Compliance Management Department at the head office identifies and confirms compliance issues, including privacy issues.
We have established a person responsible for the handling of personal information, and have established a system for reporting to and communicating with the person responsible in the event that a fact or indication of a violation of laws, regulations, or handling rules is detected. We have also established an appropriate management system by preparing regulations for personal information protection and conducting annual personal information protection training for all employees.
The Company conducts periodic self-inspections of the status of personal information handling, as well as audits by other departments and outside parties.
In the event that a compliance violation or suspected compliance violation is discovered, the Company will investigate and clarify the facts and causes of the occurrence, and promote measures to prevent recurrence.
Related Information
Security for Cashless Payment Services
Responses to the fraudulent use of cashless payment services
In September 2020, the Bank announced the occurrence of incidents involving financial damage caused by the fraudulent use of its immediate transfer services and "mijica," which are part of the Bank’s cashless payment services.
In regard to the immediate transfer services, an unauthorized third party opened a payment service account and linked it with a number of customers’ bank accounts to perform illegal transfers.
In regard to mijica, a third party logged into the mijica members’ online accounts without authorization and illegally transferred funds to their own mijica card from the customers’ mijica cards.
The below measures have been taken in regard to the incidents.
Responses to the fraudulent use of immediate transfer services
- Suspension of immediate transfer services to some payment service providers.
- Notifications for transaction confirmations and other such actions have been provided to approx. 5.5 million customers with accounts registered with payment service providers.
- Introduction of a two-factor authentication system for when registering bank accounts with payment service providers.
- All customers who have incurred financial damage have received full compensation.
Responses to the fraudulent use of mijica cards
- Money transfer functions for all mijica cards (Visa debit / prepaid card), as well as new registrations and the use of the member website and smartphone apps have been suspended.
- Warning notifications were sent to all mijica members.
- Screening has been conducted for all transfers between members.
- All customers who have incurred financial damage have received full compensation.
Security Review Task Force
In light of fraudulent transactions occurring in cashless payment services, the Security Review Task Force was established in FY2021/3, under the direct supervision of the President and Representative Executive Officer. The task force performed in-depth security reviews that included cashless payment services that the Bank provides other than immediate transfer services and mijica.
Enhanced security measures for immediate transfer services implemented by the Security Review Task Force
- Establishment of a monitoring system for account registration and transfers.
- Notification letters or text messages are sent to customers following the completion of their account registration.
- Introduction of a two-factor authentication system (IVR authentication) for payment service providers.
- In the event that letters requesting confirmation of fraudulent transactions fail to deliver due to reasons such as unknown addresses, account registrations are temporarily revoked.
Related Information
Report by the Security Review Task Force for cashless payment services (Japanese version only)
Reopening services
For its immediate transfer services, the Bank has complied with the required items established by the Security Review Task Force and has implemented enhanced security measures. It has also completed compliance with the guidelines of the Japanese Bankers Association and the Japan Payment Service Association. Since January 2021, the Bank has gradually reopened services to payment service providers whose completion of the compliance required by the guidelines of the Japanese Bankers Association and the Japan Payment Service Association has been confirmed by the Bank.
We terminated the mijica service on July 31, 2022, following the commencement of Japan Post Bank Debit, our new Visa debit card, in May 2022.
Governance Review and the Establishment of Governance Systems
The Audit Committee has reviewed and made recommendations on the establishment and operation status of the governance systems related to the fraudulent use of cashless payment services, which was announced in September 2020. In addition, the JP Reform Execution Committee, which has been established by the four companies of the Japan Post Group and is comprised of external experts, has released results from reviews concerning the Bank's governance and has made proposals for improvements to help strengthen it.
Based on these recommendations, the Bank has formed a system to allow for the centralized management of customer complaints and inquiries, covering from their reception to their resolution. As part of this system, steps were taken such as the creation of the Customer Service Management Department in January 2021, and the establishment of the Consultation Desk for Damages due to Cashless Services in March 2021. Furthermore, in April 2021, the Bank established the "New Product and Service Assessment Subcommittee," which endeavors to strengthen the Bank's screening system for new products and services at the time of introduction and after introduction, and the "IT System Risk Subcommittee," which discusses and shares matters concerning system security and/or system risk with relevant departments.
Related Information
Future response for cashless payment services (Japanese version only)
JAPAN POST BANK Co., Ltd Governance Verification Report (Japanese version only)
Prevention of Specific Fraud Cases Including Bank Transfer Scams
The Bank cooperates with the police and takes various measures to ensure customers are protected from financial damage relating to bank transfer scams and other types of fraud. Also, based on the Criminal Accounts Damages Recovery Act,* funds in accounts used for crime are seized and distributed to customers who have been affected in accordance with the amount of financial damage.
- *:
- Act on Damage Recovery Benefit Distributed from Funds in Bank Accounts Used for Crimes, enacted June 2008.
Related Information
Beware of financial crime! (Japanese version only)
Measures for the prevention of special fraud cases
- Strengthening of screening when accounts are opened, including the refusal to open accounts for people with a history of fraudulent account use.
- Freezing accounts and denying the opening of new accounts for persons whose names match those appearing in the "frozen account holder list," which is provided by the police and lists accounts used in the past for crimes such as bank transfer scams and investment fraud.
- Distributing warning flyers and displaying warnings on ATM screens. (In the event that we receive a deposit or refund that we suspect is part of a bank transfer scam, we explain the situation to the customer and request an explanation by the police.)
- Recommending customers reduce the maximum withdrawal limit on their accounts.