Japan: Despite new law, banks lose data on 2 million customers(shoddy book-keeping)

Asahi Shimbun ^ | 07/02/05

[TigerLikesRooster]

Despite new law, banks lose data on 2 million customers

07/02/2005

The Asahi Shimbun

Banks have lost information on more than 2 million customers in the three months since a law went into effect calling for stricter protection of personal data.

The figure was compiled from reports of financial institutions submitted to the Financial Services Agency by Thursday. Many of the companies announced the results of their internal investigations.

The agency will make a formal announcement of the results of the reports in the near future. The agency may also issue recommendations for revisions or orders to improve business operations at financial institutions found to have woefully inadequate systems for information management.

Most of the information lost included names, deposit totals and account numbers.

According to calculations by The Asahi Shimbun, the major banking groups alone lost information on a total of about 1 million customers. The number more than doubled when information lost by regional banks was included.

One such bank, the Aomori-based Michinoku Bank, announced in April that it had lost three CD-ROMs containing information on about 1.3 million customers-almost the entire customer base of the bank.

Seven major banks or groups announced the loss of customer information on Thursday.

The four banks in Resona Holdings Inc.--Resona Bank, Saitama Resona Bank, Kinki Osaka Bank and Nara Bank--lost information on a total of about 287,000 customers.

Mizuho Bank said it lost information on about 272,000 customers, while Mizuho Trust & Banking reported missing information on about 7,000 customers.

Other major banks reporting lost information were Mitsubishi Trust & Banking (173,000 customers), UFJ Trust Bank (116,000), Sumitomo Mitsui Banking Corp. (61,000) and Aozora Bank (40,000).

Sumitomo Trust & Banking has also reported lost information to the FSA.

UFJ Bank, the Bank of Tokyo-Mitsubishi and Mitsui Trust Holdings said they have not lost customer information.

Among other smaller institutions, Norinchukin Bank said information on about 1,500 customers was lost. Kansai Urban Banking Corp. reported missing data on about 52,000 customers and Musashino Bank Ltd. reported information lost on about 16,000 customers.

Most of the lost information was contained on microfilm or application forms. Bank officials said there was the high possibility the microfilm and forms were mistakenly thrown out in the process of consolidating files during the amalgamation of branches.

There have been no reports that the personal information was used for questionable purposes. Bank officials contend there is a small possibility that the information leaked outside of their financial institutions.(IHT/Asahi: July 2,2005)

[TigerLikesRooster]

I wonder how well other banks manage their customer records. It could unsettle me if I actually find it out.:-)

[TigerLikesRooster]

How is your bank account doing?

[snowsislander]

There have been no reports that the personal information was used for questionable purposes.

Without a passbook and a hanko, my first thought would be that it would be difficult for criminals to take much advantage of this type of information for non-credit card accounts.

[adam_az]

After all, all it takes to protect people is to pass more laws.... erm... never mind.

:)