Japan sounds alarm as cyberattacks hit companies nationwide
What's the story
Japan is facing a major cyber security crisis, with a string of attacks exposing vulnerabilities in both private and public sectors. The Financial Services Agency has asked banks to stop using driving licenses as the main form of ID verification for new accounts. This comes after breaches at transport companies, retailers, car rental firms, and government agencies raised alarms over sensitive data security across Japan.
Data breach impact
Over 20 companies report cyber incidents
More than 20 companies have reported cyber incidents in the last few weeks, potentially exposing tens of millions of customer records.
The Financial Times reported that the Financial Services Agency has urged banks to hasten the adoption of ID cards with chips such as passports and MyNumber.
This is due to fears over the risks posed by storing traditional ID documents online.
National concern
Cyber security viewed as national issue
The government's response indicates that the problem is bigger than individual companies.
Officials are increasingly viewing cyber security as a national issue, with possible repercussions for banking, public services, and safeguarding citizens' personal information.
The scale of the incidents has prompted Japan's ruling Liberal Democratic Party to hold an emergency session of the National Cybersecurity Strategy Headquarters on Friday.
Attack details
Ransomware attack linked to SoftBank cloud service provider
East Japan Railway, or JR East, revealed that some 1.67 million customer email addresses may have been leaked through its booking system.
The railway operator's disclosure was part of a wider group of incidents tied to a ransomware attack linked to IDC Frontier, a SoftBank-owned cloud services provider.
This same attack has been connected with data exposure involving local governments and several other companies.
Sector impact
Breaches across multiple sectors
The cyber security issues have affected a range of sectors, including convenience store operator Lawson, hospitals, government facilities, and businesses from barbecue restaurant chains to discount stores.
Car manufacturers and karaoke operators are among other transport-related companies that have faced cyber security problems.
These incidents have raised doubts about whether Japanese companies are doing enough to protect the data they collect.
AI impact
Global surge in cyber attacks
The latest wave of breaches comes amid a global surge in cyber attacks, as criminals gain access to tools that make it easier to identify potential targets.
Artificial intelligence (AI) is emerging as a major concern. South Korea's president recently said there was evidence of AI being used in cyber attacks on banks, highlighting the potential implications for financial institutions across the region.
However, there is no clear evidence that AI was responsible for the recent attacks in Japan.