Crime MUFG issues apology for 1 bn yen safe deposit box thefts

[thomas]

Japan's largest bank issued an apology on Monday following allegations that an employee stole over 1 billion yen ($6.6 million) from customers' safe deposit boxes. Mitsubishi UFJ Financial Group, Inc. (MUFG) confirmed they are investigating the matter. So far, the bank stated that verified thefts involving about 20 of the 60 affected clients total nearly 300 million yen (around $2 million), with compensation plans underway. The thefts reportedly took place at two Tokyo branches between April 2020 and late October 2023. MUFG President and CEO Junichi Hanzawa revealed that a female employee who managed the safe deposit boxes and their keys is suspected of using her position to steal cash and valuables.

MUFG said the employee admitted to taking the money and using it for investments and personal purposes. She was fired and was cooperating with the bank's internal probe and a police investigation but has not yet been arrested. After news of the thefts surfaced, dozens more people came forward with claims of suspected losses that the bank is working to verify, it said. The MUFG case is the second recent one involving criminal activity at a major Japanese financial institution. In November, Nomura Holdings acknowledged that a former employee had been arrested on suspicion of robbery, attempted murder and arson targeting a client in Hiroshima.

Paywall alert:

Japan's largest bank apologizes for $6.6m in safe deposit box thefts

Mitsubishi UFJ Financial Group says employee hit 60 clients at 2 Tokyo branches

asia.nikkei.com

According to the bank and additional sources, two keys are required to open and close a safe. The customer possesses the primary key, but the bank keeps a reserve sealed with the customer's registered seal. The former employee, using a supervisor's authority, broke the seals of spare keys and opened the safe deposit boxes without permission. The bank said that despite employees conducting voluntary inspections of spare keys at the two branches and a group company conducting periodic inspections, they could not detect any abnormalities. To prevent a recurrence, the bank said it will review the management of spare keys. Previously, individual branches were in charge of them, but the responsibility will transfer to central management at MUFG's head office.

MUFG thief used position, backup keys to get in safe deposit boxes | The Asahi Shimbun: Breaking News, Japan News and Analysis

 

[thomas]

Another blow to the safety of Japan's financial institutions: today, Mizuho Bank reported that a bank employee stole valuables from a safe deposit box in 2019 worth "tens of millions of yen."

Mizuho Bank had not made the incident public "in consideration of its relationship with customers," an official said. The employee involved in the theft has already been dismissed but the bank did not disclose whether any criminal action was taken. The bank reported the incident to the Financial Services Agency and took measures for the victims. It also reviewed the storage practice of keys to prevent a recurrence of such incidents, it said. "We will consider further enhancing our management system," the official said. The theft came to light after the bank in principle suspended accepting applications for use of safe-deposit boxes in January.

Paywall alert:

Mizuho Bank says worker stole safe-deposit box valuables in 2019

Revelation comes after another Japanese megabank reported a similar incident

asia.nikkei.com