THE JAPAN NEWS


 

The communications ministry has asked an industry organization to thoroughly verify the identities of budget smartphone users when they form a contract, it has been learned.

It is often possible to complete subscription procedures on the internet for budget smartphones, which offer lower communication charges than ordinary smartphones, and there is a rapidly growing number of cases in which smartphones are acquired with forged ID documents and then misused for crimes such as bank transfer scams.

To address this situation, the Internal Affairs and Communications Ministry will strengthen countermeasures such as implementing administrative measures against malicious smartphone providers that shirk efforts to prevent fraud, according to informed sources.

The ministry has reportedly sent a written request to the Telecom Services Association, which comprises about 50 companies selling budget smartphones, including Rakuten Inc. and Line Corp. It called on the association to enhance training for staff in charge of user subscriptions, make sure to report to the police and other relevant authorities when possible frauds are discovered, and share information about fraud methods, the sources said.

In many cases, budget smartphone subscribers verify their identities by entering their name, address and other information on a subscription website, taking a picture of their driver’s license or health insurance card with a mobile phone camera and sending the photo through the website.

However, there is no end to cases in which people illegally buy smartphones by forging a driver’s license number using image-editing software or sending a photo of a health insurance card carrying a fictional company’s name.

If a budget smartphone provider is found to clearly neglect its duty to verify users’ identities or other procedures, the ministry will issue a correction order based on the law regarding the prevention of improper use of mobile phones. If the provider does not conform to the correction order, it could face imprisonment with labor for up to two years, or a fine of up to ¥3 million.

According to the Metropolitan Police Department, only five budget smartphones were used for “special fraud” cases including bank transfer scams in 2015, but the number surged to 298 in 2016.

“The advantage of allowing people to easily subscribe [to budget smartphones] online has apparently backfired,” an ministry official said.