Japanese Companies Brace for More Attacks as Cybercrimes Climb

Cybersecurity Threats in Japan - A recent wave of cyberattacks has revealed significant vulnerabilities in Japanese businesses' digital defenses, raising concerns about potential disruptions to sales and supply chains [1] - In the first half of the year, there were 116 reported cases of ransomware attacks, matching a record from 2022, indicating a troubling trend in cybersecurity threats [2] Impact on Companies - Asahi Group Holdings Ltd. had to take its distribution system offline due to a ransomware attack, reverting to phone orders for its products [1] - Retailers relying on Askul Corp. lost access to their e-commerce platforms, affecting their ability to sell online [4] - The Port of Nagoya suspended operations in 2023 after a ransomware attack disrupted communication systems, highlighting the broader impact on critical infrastructure [6] Factors Contributing to Vulnerabilities - The rise of remote work post-pandemic, increased use of cryptocurrency, and advancements in artificial intelligence have made it easier for cybercriminals to operate [2] - Japan's slower adoption of digital workflows and limited English proficiency have historically acted as protective barriers, but these are diminishing as companies seek to pay ransoms [5] Corporate Cybersecurity Practices - Approximately 46% of Japanese companies have appointed a Chief Information Security Officer (CISO), significantly lower than the global average of about 70%, indicating a lack of in-house cybersecurity expertise [7] - The tendency for Japanese companies to rely heavily on system integrators has reduced their internal cybersecurity capabilities, as IT is not integrated into corporate strategy [7] Regional Cybercrime Context - Despite the recent increase in attacks, Japan's scale of cybercrime remains relatively small compared to North America, which accounted for 64% of global victims in September [8] - The Asia-Pacific region represented 12% of global cybercrime victims, but this number may rise as Japan experiences its first wave of significant cyber threats [8][9]