Osaka –

In a first for Japan, the Osaka prefectural government will ban people 65 and older from using ATMs while speaking on mobile phones to try to prevent "special fraud" schemes that frequently target older people.

Under a revised prefectural ordinance, financial institutions and other businesses will be required to promote awareness of the new rule. While the ordinance does not include penalties, the Osaka prefectural government hopes to build public consensus to help prevent special fraud.

In special fraud cases, perpetrators typically claim to be a relative or an employee of a public institution over the phone to deceive victims and swindle them out of money or bank cards.

"Elderly victims not only lose money, but also suffer psychological distress," Osaka Gov. Hirofumi Yoshimura told reporters following the ordinance's passage by the prefectural assembly in March. "We introduced this ordinance in the hope of preventing particularly serious crimes."

The number of special fraud cases and the total amount of related financial damages in Osaka Prefecture have been on the rise since 2021. In 2024, there were 2,658 cases, with estimated losses totaling about ¥6.4 billion, the highest figures ever recorded. Of all victims, 70.9% were 65 or older, highlighting the urgent need for stronger countermeasures.

In June last year, Yoshimura announced his intention to introduce a revised ordinance to formalize fraud countermeasures and requested a panel of experts to review the proposal.

According to a survey conducted among residents of the prefecture, only 3% of those 65 or older and 4% of those 70 or older reported occasionally using ATMs while talking on mobile phones. While some expressed concern that banning phone calls at ATMs might inconvenience users, the expert panel concluded that the restriction would not be excessive.

"Given the scale of the damages, users should accept a certain level of inconvenience," the panel said.

The revised ordinance primarily targets business operators, with financial institutions expected to play a key role. Banks and other institutions will be asked to display posters at their branch and other offices and ATMs to raise awareness of the new rule. If a transaction is suspected of being related to a special fraud case, financial institutions will need to report it to the police.

In addition, financial institutions will be required to impose a daily money transfer limit of ¥100,000 for ATM users who are 70 or older who have not conducted such transactions in the past three years. The measure is based on the view that it is unusual for elderly individuals with no recent history of money transfers via ATMs to suddenly remit large sums of money.

The revised ordinance also introduces new requirements for convenience stores and other retailers. Businesses will be required to verify whether the purchases of prepaid e-money totaling ¥50,000 or more are potentially linked to fraudulent activity. The measure follows a series of scams in which victims were tricked into paying fictitious fees by purchasing prepaid e-money.

Under a joint initiative by the Osaka prefectural government and police, store staff will need to confirm with e-money buyers that their purchases do not fall under any of seven warning signs, which include statements such as "I was instructed by someone to buy e-money" and "I plan to give the e-money number to someone."

Under the revised ordinance, most provisions will take effect in August, while the cap on ATM money transfers by people 70 or older will come into force in October.

Alongside these measures, work is already underway to install artificial intelligence-equipped cameras at ATMs to help identify potential fraud victims. The ordinance will not make the installation of such cameras mandatory.

"We're determined to ensure that the rule prohibiting elderly people from using ATMs while talking on mobile phones becomes widely known and eventually accepted as common sense," Yoshimura said.