Mizuho Theft Fuels Concerns Over Safe Deposit Boxes In Japan

Mizuho Financial Group Inc. has revealed that a former employee stole tens of millions of yen worth of clients’ property from safe deposit boxes, raising concerns about the security of such services at Japanese banks, Hideki Susuki and Taiga Uranaka reported for Bloomberg News.

Mizuho is Japan’s third-largest bank. I Photo: Suikotei Wikimedia Commons

A company spokesperson has confirmed that an ex-employee of Japan’s third-largest bank stole assets from two customers in 2019. Mizuho has since reported the case to the Financial Services Agency (FSA).

The incident follows a similar scandal at Mitsubishi UFJ Financial Group Inc. (MUFG), where an employee allegedly stole an estimated ¥1.4 billion ($9 million) from the safe deposit boxes of multiple customers.

In response, senior MUFG executives, including banking unit chief Junichi Hanzawa, took pay cuts. Finance Minister Katsunobu Kato stated that the FSA will continue to assess the state of the safe deposit box industry, including potential links to money laundering.

"Financial institutions must take appropriate measures regarding deposit box security," Kato said at a press briefing following a TV Tokyo report on the Mizuho case.

MUFG is currently evaluating whether to continue offering safe deposit box services and is expected to reach a decision by March.

Some global banks, including JPMorgan Chase & Co., have already begun phasing out the service as they close physical branches to cut costs and prioritize digital banking, Bloomberg News reporters Erica Yokoyama and Takashi Umekawa noted.