Bank deposit safety in Japan is threatened increasingly by people using forged or stolen cards to make illegal withdrawals. Now, members of the Diet are preparing to introduce a bill that would require all financial institutions -- including commercial banks, post offices and credit unions -- to compensate victims for losses from these latter-day financial crimes.
This is certainly good news for depositors. But not all victims would be assured of 100 percent compensation. The method of compensation would vary according to whether the card used to make the illegal withdrawal was forged or stolen. In either case, though, the entire loss would be refunded unless it was a result of the victim's negligence or fault.
For example, money withdrawn with a forged card would not be refunded if the victim was ascertained to be at serious fault. The question is what constitutes "serious fault." A reasonable definition should be established during the debate on the bill.