Examining the Growing Importance of Japan’s Cybersecurity Landscape

Cyberwarfare: The Global Consequences of Attacks on Japan

As the world’s third-largest economy, Japan has become a prime target for both criminal and nation-state cyberattacks. The implications of these attacks extend far beyond the borders of Japan, impacting global business and the security of supply chains. A recent report by cybersecurity firm Rapid7 sheds light on the Japan threat landscape and emphasizes the need for organizations worldwide to consider the cybersecurity posture of their Japanese partners and subsidiaries.

Geopolitical Context

Japan‘s geographical position places it adjacent to three major players in state-affiliated cyberattacks: China to the east, Russia to the south, and North Korea in close proximity. China and Russia have historically engaged in cyberespionage to steal intellectual property (IP) for military or economic gains. North Korea, on the other hand, has focused on financial gains through ransomware attacks to support its government against global sanctions.

Notably, Japan is part of the western coalition and has faced geopolitical tensions with Russia, particularly over the territorial dispute involving the Kuril Islands. However, there is limited evidence of direct retribution from Russia through cyberattacks. The report highlights two notable incidents – the Killnet DDoS attacks against Japanese government organizations and private sector companies, and the ransomware attack on Toyota. While there is suspicion of Russian state involvement in the latter case, definitive proof is lacking.

Globalism and Supply Chain Vulnerabilities

One significant factor that gives cyberattacks on Japan global significance is the nature and importance of globalism and the global supply chain. Japanese manufacturers have numerous subsidiaries outside of Japan, which often have weaker cybersecurity defenses compared to their parent companies. These subsidiaries become attractive entry points for attackers.

The Rapid7 report identifies two reasons that make non-Japanese subsidiaries vulnerable to attacks. Firstly, the language barrier plays a role. With English being the global business language, foreign attackers find it easier to compose phishing emails or conduct social engineering attacks in English rather than Japanese. Subsidiaries or suppliers in English-speaking countries, such as the US or the UK, become higher-risk targets for phishing attempts.

Secondly, globalism and foreign acquisitions create additional vulnerabilities. If an overseas subsidiary is acquired, existing compromises or security issues may come along with the acquisition, making it a potential weak link in the overall security chain. Nation-state attackers primarily focus on stealing information quietly and avoid causing significant damage. In contrast, criminals aim to extort money and often use ransomware as their weapon of choice. For Japanese manufacturers, the prevalence of “just in time manufacturing” – a method that delivers supplies directly to the production line without stock reserves – leaves them vulnerable to disruptions that can immediately halt the manufacturing process and impact global customers.

Editorial: The Global Implications and Cybersecurity Response

The Rapid7 report serves as a reminder of the interconnectedness of the global economy and the need for robust cybersecurity measures to address the potential repercussions of cyberattacks on Japan. Japan‘s status as the third-largest economy and its extensive global business footprint make it an attractive target for attackers, both criminal and nation-state actors.

The global supply chain has become a critical infrastructure that relies heavily on the uninterrupted operations of Japanese manufacturers. Attacks against these manufacturers can quickly ripple outwards, disrupting international trade and affecting businesses worldwide. The speed at which negative effects can spread from a disruption attack on Japanese manufacturing highlights the urgency for organizations to assess the cybersecurity posture of their Japanese partners and subsidiaries.

To mitigate the risks, organizations must prioritize cybersecurity measures such as comprehensive threat detection, robust incident response plans, and regular vulnerability assessments. Collaboration between governments, industry leaders, and cybersecurity experts from around the world is crucial to strengthen cybersecurity defenses, share threat intelligence, and address emerging cyber threats.

Advice: Protecting Global Business Interests

Given the increasing global consequences of attacks on Japan, organizations that conduct business with Japanese partners or have subsidiaries in Japan should take proactive steps to enhance their cybersecurity defenses. The following recommendations can help mitigate the risks:

1. Assess the Cybersecurity Posture

Regularly evaluate the cybersecurity posture of Japanese partners, subsidiaries, and suppliers. Ensure they have appropriate security measures in place and adhere to industry best practices. Engage in ongoing dialogue regarding their cybersecurity strategies and incident response plans.

2. Strengthen Supplier Security

Implement rigorous security requirements for suppliers, including cybersecurity awareness training, secure software development practices, and regular security audits. Verify that non-Japanese subsidiaries have adequate security measures, particularly if they operate in English-speaking countries.

3. Enhance Threat Detection and Incident Response

Invest in advanced threat detection tools and technologies to identify and respond to potential cyber threats promptly. Establish well-defined incident response plans, conduct regular simulations and reviews, and improve coordination with Japanese partners to minimize the impact of cyber incidents.

4. Foster Information Sharing and Collaboration

Participate in industry forums, threat intelligence sharing communities, and government initiatives focused on cybersecurity. Collaborate with peers, industry leaders, and cybersecurity experts to exchange knowledge, share threat intelligence, and collectively improve global cybersecurity defenses.

By taking proactive measures to bolster cybersecurity, organizations can protect their global business interests and play a part in strengthening the resilience of the global economy against cyber threats.