The National Police Agency launched a new quick freeze system on Monday to halt and recover money lost in special fraud cases. The agency announced the framework on Thursday after signing agreements with nine major banks. Under this system, police submit online inquiries about suspicious transfers directly to the banks. Consequently, they can receive same-day responses and enforce a quick freeze on suspect accounts. The NPA designed the approach to stop funds from disappearing before victims can recover them.
Previously, prefectural police departments mailed inquiry documents to financial institutions. That process took several days to several weeks for each response. As a result, fraudsters often moved the swindled money to other accounts before authorities could act. The new online system eliminates postal delays entirely. Moreover, it enables authorities to initiate a quick freeze within hours rather than waiting for paperwork. The immediate freezing of accounts gives victims a far better chance of recovering their losses.
The NPA finalized the agreement with Mizuho Bank, MUFG Bank, Sumitomo Mitsui Banking Corp., Resona Bank, Seven Bank, Rakuten Bank, Aeon Bank, SBI Shinsei Bank, and Japan Post Bank Co. Together, these institutions cover a large share of the nation’s banking traffic. Meanwhile, the agency plans to invite online and regional banks to join the scheme at a later stage. Expanding participation will widen the reach of the quick freeze capability across the financial sector.
Total losses from special fraud reached a record high of about ¥325.7 billion last year. Over 60 percent of that amount, roughly ¥210 billion, moved through ATM and online banking transfers. Therefore, police have prioritized accelerating the freezing process. The sheer scale of the losses pushed the NPA to overhaul its response time. Furthermore, the agency will speed up discussions on a new financial crime countermeasures center. This unit will monitor accounts more closely in cooperation with banks.
The quick freeze system represents a direct answer to the rapid movement of funds in digital fraud. It shifts police tactics from reactive paper-based inquiries to real-time intervention. In addition, the NPA hopes the framework will deter criminals who exploit slow administrative processes. The agency also announced plans to seek participation from all remaining financial institutions. The quick freeze approach may expand further if online banks adopt the protocol. For now, the nine partner banks provide immediate coverage for millions of account holders. The NPA expects a significant improvement in recovery rates as the system becomes standard practice.
