Fifteen leading securities firms in Japan, including financial giants such as Nomura, Daiwa, and SMBC, have officially tightened their online transaction security protocols. This strategic step was taken by implementing advanced identity verification systems based on biometrics, such as fingerprint scanning and facial recognition, which have been operational since last June.
This policy is a firm response to the surge in illegal activities targeting investor accounts since March last year. The cybercriminals' modus operandi generally involves *phishing* techniques to steal login credentials, which are then used to breach victims' personal accounts. Although the trend of fraudulent securities transactions has declined due to strict oversight, total recorded losses still reached a staggering figure of approximately 2.6 billion yen.
This move aligns with guidelines issued by the Japan Securities Dealers Association and the Financial Services Agency in October 2025. The regulation mandates the implementation of multi-factor authentication both during system login and when clients make fund withdrawals. Although security standards are now higher, companies acknowledge that they still face technical challenges in educating elderly users to adapt to these modern verification systems.
