![]() In a 2015 NPA survey of public Japanese companies, more than a third reported that they had suffered some degree of harm from these kinds of attacks. The widespread availability of free, automatic translation tools has changed this. Since most cybercrime is cross-border, Japanese APIs, websites, error messages and even the data itself was unreadable by non-Japanese speakers. Until recently, Japan-only payment systems and the Japanese language itself provided an effective layer of obfuscation over poor security practices and made attacks difficult. but only has about 1.5% of the credit card fraud. ![]() The Japanese economy is 30% the size of the U.S. For example, the National Police Agency (NPA) reports $120 million in credit card fraud in Japan compared to about $8.5 billion a year in the U.S. With the poor state of security in Japan, it might seem surprising how little cybercrime there actually is. Why Things Are About To Get So Much Worse Few Japanese firms of any size are willing to open themselves up to such public scrutiny.Ĭomputer security remains something that must be handled quietly and out of sight. Similarly, most Western technology companies sponsor “bug bounty” programs where they offer cash rewards to honest hackers who discover and report security flaws. Since startups and enterprises both tend to favor compliance over detection and mitigation, there is a wide range of security audit and consulting services available, but penetration testing is rare and expensive. The effects are visible in the Japanese marketplace. Sony executives were forces to apologize in 2011 for the massive theft of personal data from users. Japanese startups often have the in-house technical expertise that enterprises lack, but they frequently fall into the same security groupthink as their larger brethren. While more and more engineers are starting companies in Japan, Japanese investors strongly prefer and overwhelmingly fund founders with a background in finance or management consulting. In Japan, however, the same dynamic frequently plays out even in small startups. To be fair, we see the same pressures in large organizations all over the world. If not, they remain officially unknown and no one individual will be held responsible for them. If there are resources available, the vulnerabilities will be formally documented and addressed. More On Forbes: 11 Cybersecurity Resolutions For 2018Īs a result, many Japanese companies handle new security concerns informally. They are, however, all too aware of the budget that mitigation efforts consume, the projects that they delay and the resources that must be diverted once a serious security concern has been documented. ![]() ![]() Senior management does not have the background to understand either the risks involved or to evaluate improvements once they are made. The strong social stigma attached to speaking out against the group, the lack of technical understanding and the absence of any immediate consequences to poor security, results in engineers who raise security concerns being viewed as disruptive at best, and troublemakers at worst.ĭocumenting, or even fixing, security vulnerabilities provides no immediate benefit. It’s difficult being the bearer of bad news in any culture, but Japanese engineers who alert their firms to security flaws are often taking significant career risk in doing so. Officials from the Financial Services Agency arrive at Coincheck's Tokyo headquarters to conduct a. ![]()
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