Japan Faces Massive Cyberattack: Over ₹13,600 Crore in Fraudulent Trades

Japan’s Financial Services Agency (FSA) has raised serious concerns after a major cyberattack shook the country’s securities market. Hackers gained unauthorized access to thousands of online trading accounts, resulting in fraudulent trades worth over ₹13,600 crore.

Surge in Unauthorized Access

According to the FSA, the number of unauthorized access attempts to online trading accounts jumped sharply—from just 65 in January to 6,380 by April 2025. This marks a staggering 9700% increase in attempted breaches within four months.

Nine major securities firms have been affected so far, but the FSA warned that these figures may rise as more incidents are reported. Some breaches may still be undetected due to delayed reporting or more sophisticated hacking methods.

Phishing Attacks Behind the Breach

The attackers used phishing websites that closely resembled official trading platforms. These fake websites tricked users into entering their login credentials, which were then used to access real accounts. Once inside, hackers carried out unauthorized trades, draining assets from investor accounts.

Market Manipulation Strategy

The FSA revealed that the cybercriminals were not just stealing funds, but also manipulating stock prices for profit. After accessing victim accounts, they sold off existing assets and used the money to buy small-cap stocks they already owned. This artificially increased the demand and price of those stocks. The hackers then sold their own holdings at a profit, leaving the original account holders with losses.

The number of fraudulent trades also rose significantly—from 39 in January to 2,746 by April, reaching a total of 3,505 this year.

FSA Issues Cybersecurity Advisory

In response to the attacks, the FSA has issued an urgent advisory for online investors. The agency recommends the following steps to improve digital safety:

• Avoid clicking on suspicious links or emails.

• Always enable multi-factor authentication (MFA).

• Do not reuse the same password across platforms.

• Regularly check account activity and statements.

• Keep antivirus and anti-malware software updated.

The FSA has urged all investors and financial institutions to stay alert and take immediate steps to strengthen cybersecurity measures.

This major breach highlights growing concerns about cybersecurity in financial markets and the urgent need for better digital protection.

Source: The 420