Japan’s Financial Services Agency (FSA) issued an urgent warning about the rising number of unauthorized trades from hacked accounts. The agency reported a sharp increase in fraudulent transactions on brokerage accounts, with a focus on online trading platforms. These incidents were attributed to stolen customer information, often acquired through phishing websites posing as legitimate securities companies. As of mid-April, 12 securities firms had reported losses amounting to approximately $350 million in sales and $315 million in purchases.
The majority of fraudulent activity involved unauthorized access to victim accounts, with attackers manipulating them to sell stocks. The fraudsters used the proceeds to purchase Chinese stocks, leaving them in the compromised accounts. While these transactions have been documented, the FSA cautioned that there may still be additional unauthorized activities that have not been discovered. The FSA also reported that over 3,300 accounts had been illegally accessed, with 1,454 fraudulent transactions identified.
Several major firms, including Rakuten Securities, Nomura Holdings, and SBI Holdings, have informed the FSA about these incidents. During a press conference, the FSA confirmed that brokerage firms would be responsible for covering the losses incurred by customers. This move aims to ensure that victims of these cybercrimes are not left financially impacted by the hacks. The agency emphasized that it continues to investigate the full extent of the issue.
The FSA’s warning comes amid increasing concerns over cyberattacks in Japan, particularly those attributed to China-backed hackers. These cybercriminals have been targeting Japan’s critical infrastructure, including telecom carriers and internet service providers. At the Munich Cyber Security Conference, Japanese officials highlighted the growing threats from state-backed hackers, underscoring the need for heightened cybersecurity vigilance across the country.
Reference:
