Japanese Bank Apologizes After Employee Admits to Stealing $6.6 Million from Clients

The theft, involving a bank employee, occurred over four years, affecting 20 clients, leading MUFG to investigate further losses.

By Thea Felicity

Dec 16 2024, 09:41 AM EST

Japan's MUFJ Bank As It Reports Q3 Results — TOKYO, JAPAN - FEBRUARY 05: Pedestrians walk past a MUFG Bank branch on February 05, 2024 in Tokyo, Japan. Over the last six months, the net income of major and regional banks in Japan has increased, while it has decreased for shinkin banks. The pre-provision net revenue (PPNR) excluding trading income, which indicates core profitability, has increased for all types of banks, contributing to the rise in net interest income, reports in Nikkei Asia said. MUFJ Bank reports third-quarter results on Monday. Tomohiro Ohsumi/Getty Images

One of Japan's largest bank, MUFG, has issued an apology to clients and customers after their money was stolen by an employee. All money allegedly mounted tto more than 1 billion yen, or about $6.6 million.

The thefts were not a one-time thing as it reportedly took place at two Tokyo branches of the Mitsubishi UFJ Financial Group between April 2020 and October 2024, affecting many customers.

MUFG Theft

For now, the bank is currently investigating the case and has confirmed that approximately 300 million yen, which is about $2 million, has been confirmed stolen from about 20 clients, per AP News.

MUFG is currently working on providing compensation to the victims.

The theft was conducted by a woman employee who is responsible for controlling the safe deposit boxes and their keys. According to Junichi Hanzawa, the president and CEO of MUFG, the woman employee abused her authority to carry away cash and valuables from the safe deposit boxes.

She confessed and used the money to finance personal investments. She was dismissed and is cooperating with both the investigation by the bank's internal affairs and a police probe, though she has yet to be arrested. Hanzawa said he regretted that the incident severely undermined customer confidence in the bank.

Since the incident went public, more people have reported losing money, and MUFG is investigating these new allegations, according to CTV News. The thefts have shaken the foundation of the bank's reputation, as trust is the backbone of clients with the bank. MUFG aims to rectify the situation by making sure that customers are compensated for their losses.

The thefts at MUFG have sent shock waves of disappointment all over. According to Chief Cabinet Secretary Yoshimasa Hayashi, banking requires a high level of trust and service to the public, terming the incident "extremely regrettable."

This incident occurred recently after a similar case reported by Nomura Holdings, another prominent financial institution in Japan, found a former employee involved in robberies and arson to attack a client in Hiroshima last November.

Both have attracted much attention on the issue of security and trust within Japan's banking industry.