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The strength and quality of Japan’s manufacturing base are the critical causes of cyberattacks in Japan against its computer systems. Because of their size, Japanese manufacturers are an appealing target for criminal extortion. The high quality of Japanese goods makes the manufacturers’ (Intellectual Property) IP an attractive target for nation-stake threat operators looking to boost their knowledge and economy. A detailed report called “Japan and Its Global Business Footprint from a cybersecurity company shows the nature and impact of the attacks elevates attacks against Japan to global events. Japan’s geographical and geopolitical location is near to and opposed to three of the world’s four most powerful state-affiliated cyberattacks: China to the east, Russia to the south, and North Korea to the north. China and Russia have a history of utilizing cyber espionage to steal Intellectual Property (IP) for military or economic purposes.
North Korea is more concerned with stealing money to help its government avoid global sanctions; however, it has been known to use ransomware. Japan is an appealing target in terms of both money and intellectual property. Japan is a member of the Western Coalition and has its own territorial conflict with Russia over the Kuril Islands. Its backing for Ukraine against Russia will likely exacerbate geopolitical tensions with Russia. However, there’s little evidence of direct Russian geopolitical retribution against Japan. There are two possibilities: the Killnet DDoS attacks on Japanese government and private sector websites in September 2022 (The Japan Times) and the earlier ransomware attack against Toyota in February 2022. The ransomware attack came after the Russian ambassador’s warning not to support Western sanctions over Ukraine, raising suspicions (but not proof) of Russian state involvement.
Aside from geopolitics, the nature and importance of globalism and the global supply chain give cyberattacks in Japan global significance. Japanese manufacturers have numerous subsidiaries outside of Japan. Smaller subsidiaries are likely less well-defended than their parent companies and can be utilized by threat operators as an entry route. The report mentions two additional factors that make the non-Japan course appealing or accessible to threat operators (both criminal and nation-state). The first is language. Japanese is widely spoken in Japan, but almost nowhere else in the world, where it is the global business language. Writing a convincing phishing email in English is easier for foreign threat operators than writing in Japanese. If users speak English, sending someone a phishing email or other social engineering attack is more accessible. If companies are a United States or United Kingdom subsidiary of a Japanese company, they can be at higher risk simply because they speak English, making them easier to phish.
The second point to consider is the nature of globalism and foreign acquisitions. If the overseas subsidiary was an acquisition, it could have come with existing compromises or security issues, a critical vulnerability. Nation-state threat operators typically avoid causing harm; their primary goal is to steal information as quietly as possible. Criminals operate in a unique manner, and their goal is to extort money using any means possible, with ransomware as their preferred weapon. Extortion attacks that incorporate IT and OT encryption are intended to interrupt and ransom the manufacturing process. Because of the widespread usage of “just-in-time manufacturing,” Japanese companies are particularly vulnerable. It’s an efficient business process because supplies aren’t accumulated and stored until needed but are delivered immediately to the production line. It frees up funds that would otherwise be held in warehouses holding reserved stock.
The disadvantage is that there are no stack reverses, which makes companies particularly vulnerable to business disruption cyberattacks in Japan that can have an immediate impact. It’s only the beginning, and if manufacturers can’t produce new parts, they can’t be transported to clients, who can be located anywhere in the world. Cybercriminals are betting that the rapid spread of adverse effects from disruption attacks against Japanese manufacturing will aid their extortion operations. The most important takeaway from the study is if companies conduct business with Japan, regardless of organizations’ locations, they must examine the implications of Japan’s global business footprint and the cybersecurity posture of their Japanese partner or parent. With the large and well-known Japanese brands, threat operators will target overseas subsidiaries or affiliates and use the initial footholds to move laterally into the parent company in Japan.
With ransomware groups and cyber threat operators targeting major country economy markets, including Japan, high-profile companies must remain vigilant of the latest threat landscape and regularly update their data network infrastructure. At SpearTip, our certified engineers at our 24/7/365 Security Operations Center are continuously working to monitor companies’ data networks for potential cyberattacks in Japan and other countries. They are ready to respond to incidents at a moment’s notice. Our cybersecurity awareness training is designed to educate individuals and companies about best cybersecurity practices and provide the knowledge and skills to protect their systems and data from cyber threats. Our training covers topics such as password security, phishing scams, social engineering, malware, data protection, and network security. By providing cybersecurity awareness training, companies and their employees can better understand the risks of the cyber landscape and develop impactful cybersecurity practices that can reduce the likelihood of cyberattacks in Japan and other countries. Cybersecurity awareness training is an essential component of any comprehensive strategy to protect sensitive information, such as personal data, financial information, or intellectual property, and prevent data breaches, system downtime, and other negative consequences from cyberattacks in Japan and other countries.
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