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Japanese companies are stepping up cybersecurity measures in response to a sharp increase in ransomware attacks. This rise in cyber threats has highlighted vulnerabilities within the country’s extensive global business network, placing both sensitive data and critical business operations at risk.
Ransomware, malicious software that encrypts data and demands a ransom for its release, has become a significant threat to Japanese corporations. Attackers have often targeted large manufacturing companies, exploiting their low tolerance for operational disruptions. In some cases, hackers not only demand payment but also threaten to expose stolen data publicly.
The manufacturing sector, the backbone of Japan’s economy, has been particularly vulnerable. A recent report from cybersecurity firm Rapid7 revealed that ransomware operators such as LockBit 3.0 have increasingly targeted Japanese manufacturers. These attacks have had global ramifications, as the disruption of operations in Japan can affect supply chains worldwide. For instance, if a Japanese manufacturer halts production, it can impact various industries dependent on Japanese-made components.
The rise in ransomware attacks is not only a domestic issue. Japanese companies with overseas subsidiaries are at greater risk due to complex global networks. Many attacks have originated through these overseas branches, allowing cybercriminals to infiltrate parent companies via weaker security measures at subsidiaries. This strategy, often referred to as “island hopping,” involves hackers exploiting less secure entities to penetrate larger, more secure organizations.
Japanese businesses are investing heavily in advanced cybersecurity systems. This includes implementing stronger network defences, regular security audits, and enhanced employee training to recognize and prevent phishing attempts, which often serve as the entry point for ransomware attacks.