Japan is facing a shocking wave of cyberattacks on online brokerage accounts. Criminals are gaining access through phishing, malware, and stolen login credentials, then using the compromised accounts to manipulate penny stocks. According to regulators and cybersecurity experts, the total damage has already exceeded 100 billion yen (around $710 million).
🔹 How the attacks work:
The scheme is simple but effective: hackers gain access to an account, buy low-cap stocks in Japan, the U.S., or China, artificially pump up the prices, then sell for profit. Many of the stocks are owned by the hackers themselves, allowing them to cash in directly from the manipulation.
🔹 Japan becomes a weak link in the global market
Eight of Japan’s largest online brokers – including Rakuten Securities and SBI Securities – have confirmed suspicious transactions. Some firms have even blocked purchases of certain low-cap stocks listed in China, the U.S., and domestically. The success of these attacks has revealed serious gaps in Japan’s cyber defenses.
🎯 Personal Stories: Losing Life Savings in a Blink
The story of Mai Mori, a 41-year-old part-time worker from Aichi, made headlines after she discovered that hackers used her Rakuten retirement account to buy over 639,000 yen worth of Chinese stocks – about 12% of her savings.
When she contacted Rakuten, she was advised to file a police report. But the response from authorities was discouraging: “In most fraud cases, victims end up quietly accepting the loss.”
Another victim from Tokyo, who chose to remain anonymous, lost 50 million yen after his account was hijacked. Even though he saw a warning pop-up on his phone and called his broker immediately, it was too late to freeze the account.
⚠️ Who’s to Blame?
Brokers blame the users. Police blame the brokers. Meanwhile, the government is urging firms to "act in good faith" when dealing with affected customers – but very few investors have been compensated so far.
On April 22, Finance Minister Katsunobu Kato called on securities companies to engage in sincere discussions with victims. Yet actual payouts remain rare.
📈 Fraud Cases Are Skyrocketing
📊 In February, only 33 suspicious trades were reported. In just the first half of April, that number jumped to 736. The Financial Services Agency hasn’t disclosed total losses, but experts warn the trend is threatening Japan’s national campaign to shift household savings from cash to investments.
🛡️ How Are Hackers Getting In?
🔹 Phishing & Man-in-the-Middle Attacks:
Victims are lured to fake login pages via phishing emails or malicious ads. These pages forward login credentials and session cookies to attackers, who then gain full account access.
🔹 Infostealers (data-theft malware):
Small hidden programs embedded in attachments or links. Once inside a device, they silently search browsers and files for saved IDs and passwords, sending them back to the attacker.
🔹 Web browsers as a vulnerability:
According to expert Yutaka Sejiyama from Macnica Security, Japan’s cultural preference for desktop browsers over mobile trading apps is a key weakness. Mobile apps usually offer biometric authentication and encrypted channels, making them more secure. “If people switched to mobile apps, many of these thefts could be prevented,” he argues.
💡 The Bigger Picture: Is Japan’s Financial Shift in Jeopardy?
The Japanese government wants its citizens to invest more and save less – but the growing number of scams and the lack of consumer protection could completely undermine public trust.
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