Japan’s financial watchdog has issued a stark warning after a massive wave of account takeovers rocked its securities market. Hackers orchestrated unauthorized trades worth over ₹13,600 crore, exploiting phishing tactics and weak cybersecurity hygiene. The breach has exposed vulnerabilities in Japan’s financial infrastructure, prompting urgent calls for digital vigilance.
A Sharp Spike in Cyber-Intrusions
In an alarming development, Japan’s Financial Services Agency (FSA) has revealed a drastic surge in unauthorized access to online securities trading accounts, resulting in fraudulent trades exceeding ₹13,600 crore. The number of unauthorized access attempts exploded from just 65 in January to a staggering 6380 attempts by April 2025—a 9700% rise year-to-date (YTD).
While nine major securities firms have been affected so far, FSA officials cautioned that these figures are only provisional. Many additional breaches may still remain undetected due to delayed reporting or stealthier attack techniques.
According to the FSA, the attackers are primarily using credentials harvested from highly sophisticated phishing websites that closely mimic the official portals of legitimate securities firms. These cloned platforms trick unsuspecting users into handing over their login credentials, opening the door to a full-scale digital heist.
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A New Form of Market Manipulation
More than just theft, the attack appears to have a strategic financial motive. The hackers are reportedly executing trades that manipulate the value of small-cap stocks they already hold. By using hijacked accounts to artificially inflate demand, they drive prices up and exit their positions with inflated gains—leaving real account holders with depreciating, illiquid securities.
“In most cases, the fraudsters gain unauthorized access to victim accounts and manipulate them to sell existing assets. They then use the proceeds to buy small-cap domestic and foreign stocks they already own,” the FSA explained.
The number of fraudulent trades has skyrocketed in tandem with unauthorized logins—rising from 39 in January to 2746 by April, bringing the total YTD to 3505. This method of market manipulation not only exploits individual investors but also threatens the broader integrity of Japan’s financial markets.
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Warnings, Weak Spots, and Cyber Hygiene
In response, the FSA has issued a comprehensive advisory urging online traders to adopt stricter digital hygiene. Key recommendations include avoiding suspicious links, enabling multi-factor authentication (MFA), not reusing passwords, regularly checking account statements, and keeping anti-malware software up to date.