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Japan Times
2 days ago
- Business
- Japan Times
Online brokerage account hijacks in Japan highlight need for login vigilance
The hijacking of online brokerage accounts has suddenly become a problem in Japan, as the deep-pocketed and unsuspecting are targeted and their portfolios commandeered to manipulate the market. For January and February, the Financial Services Agency reported 72 unauthorized online brokerage transactions. In March and April, that number was 3,400. The Japan Securities Dealers Association said on Wednesday that it had confirmed hijacking cases at 16 brokerages, including major companies like SBI Securities and Rakuten Securities, and warned that alleged cyber crooks are now targeting users of smaller securities companies.
Japan Times
3 days ago
- Business
- Japan Times
Japan lender receives business improvement order following cover-up
The government's Tohoku Local Finance Bureau on Thursday issued a business improvement order to regional credit cooperative Iwaki Shinkumi Bank, partly for covering up fraudulent loans for many years. According to the bureau, former executives of the cooperative, including a former chairman, concealed for a long time fraudulent corporate loans, including through the accounts of depositors opened without their consent. The practice is believed to have started in 2004 or even earlier, according to the bureau and the Financial Services Agency. In addition, the lender, based in Iwaki, Fukushima Prefecture, let a former employee who committed embezzlement continue working as usual without taking disciplinary action. The employee later committed further embezzlement. The bureau said that corporate governance did not function due to the massive influence held by the former chairman. The bureau requested that Iwaki Shinkumi Bank submit a business improvement plan by June 30. It also ordered the cooperative to revise a special business plan drawn up in exchange for a public funds injection in 2012. On Thursday, Iwaki Shinkumi Bank said that its leader, Yohachi Honda, and other executives will resign to take responsibility. The lender had disclosed its misconducts in November 2024.
Yomiuri Shimbun
10-05-2025
- Business
- Yomiuri Shimbun
Securities Accounts: Measures to Prevent Account Hacking Are Urgently Needed
There has been a sharp increase in crimes in which accounts opened with securities companies are hacked by unknown persons and stocks are traded without the account holders' knowledge. Individual investors must be feeling very uneasy. With renewal of the Nippon Individual Savings Account (NISA) investment program in January last year, the base of individual investors has expanded. The securities industry must urgently implement measures to prevent accounts from being hacked. Law enforcement authorities must also devote their full efforts to cracking down on such crimes. The Financial Services Agency has announced the extent of the damage caused by the online hacking of securities accounts and stock trades. The number of cases of illegal trades was in the double digits in January and February but surged to 687 cases in March and 2,746 in April. A total of 3,505 cases were reported over the four-month period. This is a serious situation. Incidents were confirmed at nine securities firms, including Rakuten Securities, Inc., SBI Securities Co. and Nomura Securities Co. The FSA said the amount of illegal trading in this way has exceeded ¥300 billion. The method used to hack accounts involves first sending emails with titles such as 'Urgent/Important' to investors. Recipients are directed to websites imitating those of the securities companies mentioned in the emails, where they are then prompted to enter their ID and password, which are then stolen. Criminal groups use the stolen IDs and passwords to take control of legitimate securities accounts. They are believed to purchase large quantities of stocks in China and Japan that are typically traded at low prices and low trading volumes. After inflating the stock prices, they then sell the stocks to profit from the increased prices. This is a malicious criminal act. Investigative authorities should identify the sources of the emails, trace the flow of funds obtained through illegal means and uncover the full extent of the crimes. Preventive measures by securities companies are also crucial. They have reportedly implemented safety measures such as requiring investors to enter one-time passwords sent to their smartphones when logging into their accounts. It is essential to thoroughly inform investors of these measures. Investors should also confirm their own protective measures. It is important not to open links displayed in scam emails, but to instead access legitimate websites. Securities companies have said that they would compensate damages of accounts affected by the incident to a certain extent. While their terms and conditions previously stated that damages incurred by cases of unauthorized access would not be compensated, they have revised their policy in response to the expanded scope of the damages. Investors are growing increasingly anxious, and swift responses are required. It is surely necessary for each major securities company to make efforts to provide appropriate information, such as holding individual press conferences, regarding the spate of incidents and their response measures. The Japan Securities Dealers Association, an industry group of securities firms, has begun discussions on measures to prevent illegal accesses. It should come up with effective countermeasures. (From The Yomiuri Shimbun, May 10, 2025)
Japan Times
09-05-2025
- Business
- Japan Times
FSA reports about ¥300B in illicit online trading from January to April
Transactions from hacked brokerage accounts topped ¥300 billion ($2 billion) in the first four months of 2025, data from the Financial Services Agency (FSA) has shown, reflecting a sharp rise in cases in which hackers are believed to have been manipulating stock prices via those accounts. According to the data released on Thursday, the number of unauthorized access cases to the accounts of stock holders soared from just 65 in January to 4,852 in April. Fraudulent trades similarly jumped from 39 to 2,746 over the same period. In total, there were 6,380 cases of unauthorized access and 3,505 instances of fraudulent trades between January and April, the FSA figures showed. The transactions included about ¥161.2 billion in unauthorized selling and ¥143.7 billion in unauthorized purchases. The FSA warned these figures are provisional and likely the tip of the iceberg as more cases could have gone unreported. In many reported cases, hackers first purchase small-size stocks — or stocks with a relatively small market capitalization — for themselves. After they gain control of the accounts of independent investors through phishing, malware and other illicit measures, they sell whatever shares the account's owner held, then use those proceeds to purchase stocks they had previously bought for themselves to inflate the stocks' prices. Once the stocks' prices rise, the hackers sell their shares to make a profit. The mark of a hacked account is a portfolio comprising domestic or overseas stocks with which the account holder is unfamiliar. Such illicit trades have triggered a sweeping regulatory response and compensation pledges from the nation's largest securities firms. Ten major brokerages — including SBI Securities, Rakuten Securities, Nomura Securities, and SMBC Nikko Securities — have agreed to compensate clients for losses tied to unauthorized trades conducted since January. The level of compensation will vary based on individual circumstances and firm policies. In addition, although the financial instruments and exchange law typically bars brokerages from reimbursing client losses, Finance Minister Katsunobu Kato — who also serves as state minister in charge of financial services — said last month he had instructed securities firms to undertake thorough measures to address the damage from hacked accounts. The FSA urges all online investors to remain vigilant, advising users to avoid clicking on links in emails or text messages to any brokerage sites — even those appearing to come from trusted sources — and, instead, to bookmark and directly access such websites. The agency also emphasized the importance of using multifactor authentication, complex and unique passwords, and regularly checking account activity. Those who suspect their credentials may have been compromised should contact their brokerages immediately and reset login details, the agency stated. Beyond phishing, the FSA also warned of increasing malware-related threats capable of compromising devices and harvesting sensitive data. Keeping systems updated and using antivirus protection were cited as essential defenses against increasing instances of fraud.
Asahi Shimbun
09-05-2025
- Business
- Asahi Shimbun
Illicit stock deals using hijacked accounts exceed 300 billion yen
The Japan Securities Dealers Association warns on its website of a growing crisis involving hijacked brokerage accounts. (Wataru Sekita) Unauthorized stock market trades using hijacked brokerage accounts have soared in recent weeks, surpassing 304.9 billion yen ($2.08 billion) in value as of the end of April, the Financial Services Agency said. In a statement released on May 8, the FSA reported 3,505 cases of illicit transactions, a 2.4-fold increase from its previous update on April 16. Trading volume in the unauthorized dealings jumped 3.2-fold over that period. Hackers have gained access to the securities accounts by stealing login credentials often through phishing scams. Posing as the legitimate clients, the cybercriminals often sell shares held in the account and use the proceeds to buy stocks in Chinese firms or thinly traded Japanese equities. This coordinated buying is believed to be part of a market manipulation scheme aimed at driving up prices for financial gain. The hackers' schemes have become increasingly sophisticated. In some cases, they steal clients' identities by sending fake emails warning victims about phishing scams, mimicking the very alerts that legitimate securities firms use to protect their clients. Nine major Japanese brokerages have been affected: Rakuten Securities Inc.; SBI Securities Co.; Nomura Securities Co.; Daiwa Securities Co.; SMBC Nikko Securities Inc.; Mitsubishi UFJ Morgan Stanley Securities Co.; Monex Inc.; Matsui Securities Co.; and Mitsubishi UFJ eSmart Securities Co. The total is up by three from the previous tally. The number of cases surged from just 39 in January and 33 in February to 687 in March and a staggering 2,746 in April. Of the 304.9 billion yen in unauthorized transactions, 161.2 billion yen was for sell orders and 143.7 billion yen involved buy orders. Ninety percent of the activity occurred in April. In some instances, illicitly purchased shares remained in the hijacked accounts, meaning that actual financial losses were not reflected in the total transaction value. However, some victims reportedly suffered damages reaching tens of millions of yen. In response to the escalating problem, the Japan Securities Dealers Association has announced that 10 of its member firms plan to offer partial compensation to affected clients. Authorities are urging brokerages to strengthen authentication measures for securities accounts by combining at least two security features, such as one-time passwords and biometric verification.
