Japan is stepping up its cybersecurity response after many data breaches exposed millions of customer records. On 9 October, the Financial Services Agency called on banks to use chip-based identity documents. Masaaki Taira said, "a state of emergency in cyberspace," as officials warned that hackers now target vulnerable systems.
Japan is stepping up its cybersecurity response after a series of data breaches exposed millions of customer records across businesses and public institutions. The Financial Services Agency (FSA) of the country, on 9 October, called on banks to accelerate the process of using chip-based identity documents, such as passports or MyNumber cards, in opening new bank accounts. The shift comes after cyberattacks on transport firms, retailers, financial services and government-related companies have raised fears about the security of personal data storage and handling.
According to the Financial Times, regulators want lenders to move away from using driving licences as the primary method of identity verification. The new recommendation follows a series of reports in recent weeks of over 20 major companies reporting cyber incidents. There is also a risk that increasingly sophisticated attacks targeting businesses, public services and citizens' personal data could become possible, officials have warned, as artificial intelligence (AI) could potentially enable hackers to find vulnerable systems and broaden the scope of their attacks.
The Japanese government is viewing the increasing occurrences as a more serious threat to the nation's security. The ruling Liberal Democratic Party held an emergency meeting of the National Cybersecurity Strategy Headquarters on Friday, 9 October. Its head, Masaaki Taira, described the situation as "a state of emergency in cyberspace", while cybersecurity minister Toshiharu Furukawa warned of an exceptionally serious challenge.
A ransomware attack revealed by SoftBank's cloud services business, IDC Frontier, is also rumoured to be linked to the data exposure involving local government officials and other businesses. Other businesses impacted include the convenience store giant Lawson, hospitals, government buildings, retailers and transport-related businesses.
The ageing of Japan's population and the continued use of legacy business systems have been suggested as potential contributing factors to Japan's cybersecurity issues. Other experts have expressed concern over poor security practices and insufficient technology enhancements.
South Korea's President Lee Jae Myung also noted evidence of AI use during cyberattacks on banks and is investigating suspected AI-assisted cyberattacks. However, the recent hacks in Japan have not been proven to be caused by AI.
The Japanese government has appealed for enhanced security measures after the incidents have continued to occur within various industries. Experts believe organizations need to update vulnerable systems, further improve access controls, and data protection to minimize opportunities for further breaches, even if the risk of verification is reduced with the introduction of a 'chip' to identity documents.