WHY IS JAPAN SO PRONE TO DATA HACKS

Japanese companies have faced a striking wave of data breaches and cyberattacks in recent years, with a particularly sharp surge in 2026. Millions of customers across retail, finance, media, and other services have been affected.

But why is Japan so vulnerable to these attacks?

One reason is the prevalence of legacy systems and unpatched software. Many Japanese organizations continue running older applications, databases, and network equipment long past their secure support periods. Attackers exploit known vulnerabilities in these systems through relatively straightforward scanning, rather than sophisticated hacks requiring deep technical research or insider knowledge.

Recent incidents have involved exposed web systems, admin panels, and APIs that receive less attention than perimeter defenses. For example, unauthorized access to a contractor’s server affected the personal information of about 110,000 Daiwa Securities customers.

Another factor is heavy reliance on external system integrators. A significant share of breaches originates not at the company itself but at contractors, SaaS providers, cloud platforms, or subsidiaries that hold customer data. Japanese business structures, with their dense networks of suppliers and long-term relationships, make third-party risk management harder.

Daiichi Kosho (operator of the Big Echo karaoke chain) reported that up to about 8.7 million customer and employee records may have been exposed after malware infected a PC at its outsourcing partner, Nippon Columbia Group.

Many of the attacks are foreign-based. For example, the Russian-linked Qilin ransomware group has targeted at least 53 Japanese companies, according to Japan’s National Police Agency.

For a long time, the difficulties of the Japanese language provided a barrier against foreign hackers, while stiff penalties and a high likelihood of being caught deterred domestic ones. This led Japanese organizations to invest less in security compared with other advanced economies. But the language barrier that once hindered foreign attackers has eroded: generative AI now produces fluent Japanese phishing messages and accelerates vulnerability discovery and app reverse-engineering.

Cultural and operational habits also play a significant role. Many firms collect and retain large volumes of detailed personal data—names, addresses, phone numbers, birthdates—for extended periods, often beyond strict necessity. This creates high-value targets, especially given the well-known “ore-ore” (it’s me) phone scams that show how personal information can be leveraged against Japanese people, particularly the elderly.