TOKYO -- Japan's consumer affairs watchdog has seen a recent increase in consultations about ongoing subscription charges for deceased individuals and unclaimed assets in financial management apps, among other such issues. Amid growing device use by the aged, the Mainichi Shimbun investigated how best to deal with such "digital legacies."

The National Consumer Affairs Center of Japan (NCAC) received a report from a woman in her 80s who said, "My husband passed away and there was a charge on the credit card statement of about 1,000 yen (approx. $6.65) for a subscription. I was told that if I didn't know the ID and password, I couldn't cancel it right away." The NCAC advises "digital end-of-life planning" to prevent such issues.

Increasing smartphone use by the elderly

A 2023 Ministry of Internal Affairs and Communications survey shows widespread smartphone internet use among the working-age population, but 78% of those in their 60s and 49% of those in their 70s were also going online with their phones. As accessing music and video services as well as doing financial transactions become more popular on smartphones, digital legacies are expected to increase.

When relatives pass on, it's vital to identify their digital assets. Many contracts exist solely in digital form. Emails with contract details and asset management apps remain on phones. However, it is difficult for family members to access them if the password to the phone is unknown in the first place.

The NCAC warns that subscriptions may continue to be charged after the customer's death unless properly canceled. This occurs because providers can't typically determine if a user has died.

The NISA effect

Furthermore, with the new Nippon Individual Savings Account (NISA) system starting in January 2024, more people keep their assets in online banking and online securities, complicating inheritance. Without knowing which financial institutions the deceased individual used, even ascertaining the assets that can be inherited can prove difficult.

The NCAC suggests checking for cash cards or transaction documents from banks. For securities companies, requests for disclosure can be made for a fee to the Japan Securities Depository Center, which handles stock transfers and other operations.

First steps

What should people do to ensure the smooth transfer of their digital legacies?

Lawyer Atsushi Iseda, head of an organization that runs seminars on how to pass on these inheritances, said, "It's important to share logins for computers, smartphones and other digital devices with family. I'd like for people to create a system to do that in the event something happens to them."

Iseda recommends that people at least jot down passwords to their smartphone and computer, and if they are also able to do so, list net-based securities, online banking platforms and subscription accounts. One approach is an "ending note" that includes spaces to record IDs and passwords for various services. After telling family about writing a note, it is sealed and securely stored. NCAC advises using an ending note available on the Ministry of Justice website.

At the same time, it is important to ensure the security of these passwords. Another "scratch card" method involves overlaying correction tape on a card with IDs and passwords, stored in an accessible place like a wallet. And there are private services like "Digital Keeper" that manage passwords, and send data to designated persons if checkup emails go unanswered.

Devices can contain photos and memories a person wants to pass on, but may also hold personal data they don't want accessed after death. Iseda suggests hiding files in hard-to-find folders or transferring only the data they wish to leave behind to a separate device and sharing its password. He noted, "Few actually do digital end-of-life planning. We tend to put it off, but it only takes a minute to write down your passwords. I would recommend that everyone do at least this one thing."

High barriers to smartphone analysis

If a family doesn't know the smartphone passwords of a deceased loved-one, they can consider professional analysis services. A Japan association that offers lectures on handling legacies reports that smartphone unlocking costs between 200,000 and 800,000 yen (approx. $1,330 and $5,300), taking a month to a year. Charges for PCs range from 100,000 to 400,000 yen (roughly $660 to $2,650), requiring at least two weeks.

Association board member Kishio Yabuki stated, "As devices gain more sophisticated features, their security cannot be unlocked without using advanced techniques. This often carries high costs." Due to the expense, consultations are often ultimately unsuccessful. He urged, "You should share necessary information with family members while in good health."

(Japanese original by Nanako Hori, Lifestyle, Science & Environment News Department)