Cyberattacks Target One-Third of Japanese Companies, Survey Reveals

TOKYO, Nov 12: Cybersecurity threats have affected approximately one-third of Japanese companies or their external service providers during 2026, according to a Reuters survey, highlighting the growing risks facing businesses as digital technologies become increasingly integrated into commercial operations.

The findings indicate that cyberattacks are becoming a significant operational concern for Japanese businesses, prompting companies to strengthen their digital protection systems and allocate additional resources towards cybersecurity.

The survey revealed that approximately 10 per cent of participating companies experienced disruptions to their operations following attacks targeting their own networks or those of external service providers. Another 22 per cent reported cyber incidents that did not result in direct damage.

Just over half of the respondents said they had not experienced such attacks, while the remaining companies were uncertain about whether their systems or service providers had been targeted.

The findings come amid a series of major data breaches involving Japanese organisations in recent months. These incidents have raised concerns about the security of sensitive customer information and the ability of businesses to maintain uninterrupted services.

Japan’s government announced plans for an emergency cybersecurity response package last week following the growing number of reported breaches.

The latest survey suggests that companies are increasingly recognising cybersecurity as a business priority rather than treating it solely as a technical responsibility.

Businesses prepare to increase cybersecurity budgets

The survey showed that a substantial majority of Japanese companies expect to increase their spending on cybersecurity.

Around 3 per cent of respondents anticipated a sharp rise in security expenditure, while 59 per cent expected a moderate increase. Another 22 per cent said their spending would remain broadly unchanged.

The figures indicate that businesses are preparing to strengthen their digital defences as the frequency and complexity of cyber threats continue to increase.

For companies operating across manufacturing, transportation, retail, financial services and other sectors, a successful cyberattack can create consequences extending beyond immediate financial losses.

Disruptions to information systems can affect production schedules, customer services, payment processing, logistics and communication between different business units.

Organisations that depend on external technology providers also face additional risks because weaknesses in a supplier’s network can create opportunities for attackers to access connected systems.

This interconnected environment has made third-party cybersecurity an increasingly important consideration for corporate management.

Companies are therefore reviewing not only their internal security arrangements but also the safeguards maintained by vendors, contractors and service providers.

A manager at a textile company told Reuters that the organisation viewed cybersecurity as an ongoing challenge and intended to invest as much as possible to improve protection.

The response reflects the growing understanding that maintaining digital security requires continuous investment rather than a one-time upgrade.

Employee training becomes a key line of defence

One of the most significant findings involved the measures businesses are taking to reduce cybersecurity risks.

Approximately 63 per cent of surveyed companies said they had strengthened employee training and anti-phishing measures.

Phishing attacks typically involve fraudulent emails, messages or websites designed to trick individuals into revealing confidential information, sharing passwords or downloading malicious software.

Such attacks can target employees across departments, making human awareness an important component of an organisation’s security strategy.

Cybercriminals frequently impersonate banks, government agencies, business partners and internal management teams to make fraudulent communications appear legitimate.

Employees who receive appropriate training can become better equipped to recognise suspicious messages, verify unusual requests and report potential security incidents before they cause wider damage.

Companies are also strengthening procedures governing access to confidential information and sensitive digital accounts.

The survey found that 22 per cent of respondents had introduced stricter information management practices.

These measures may include limiting access to sensitive records, reviewing employee permissions and improving internal monitoring systems.

Organisations are increasingly adopting a layered security approach in which technical safeguards are supported by employee awareness and clearly defined reporting procedures.

Ransomware protection and data backups receive attention

Ransomware remains another major concern for businesses dealing with digital threats.

The survey found that 32 per cent of participating companies had strengthened their ransomware countermeasures and data backup arrangements.

Ransomware attacks generally involve malicious software that prevents users from accessing their files or systems, with attackers demanding payment to restore access or threatening to disclose stolen information.

Such incidents can disrupt business operations and create additional expenses involving system recovery, investigations and customer communication.

Maintaining secure backups can help organisations restore important information without depending entirely on attackers.

However, backup systems also need protection because cybercriminals increasingly attempt to compromise recovery infrastructure alongside primary business networks.

Companies must therefore regularly test their recovery procedures and ensure that important data can be restored within an acceptable period.

The survey responses suggest that Japanese businesses are placing greater emphasis on limiting the consequences of attacks rather than relying exclusively on preventing every possible security breach.

An official from a chemical company said achieving complete protection against AI-driven attacks was difficult and emphasised the importance of measures that minimise damage when an incident occurs.

Artificial intelligence creates new cybersecurity challenges

The growing use of artificial intelligence is adding another dimension to the cybersecurity landscape.

AI tools can help security professionals identify unusual network activity, analyse large volumes of information and detect potential vulnerabilities.

However, the same technologies can also be misused by criminals to improve the speed and effectiveness of their attacks.

Experts have warned that AI can automate activities such as identifying software weaknesses and preparing convincing phishing campaigns.

This allows attackers to carry out certain operations more quickly and potentially target a larger number of organisations.

AI-generated messages may also contain fewer grammatical mistakes and can be tailored to appear relevant to particular employees or companies.

Such developments make it increasingly difficult for individuals to identify fraudulent communications through traditional warning signs alone.

Cybersecurity teams must therefore develop more advanced detection capabilities while ensuring that employees understand the changing nature of online threats.

The challenge is particularly significant for smaller businesses that may not have dedicated security departments or sufficient financial resources to deploy sophisticated protection systems.

These companies can also become entry points into larger corporate networks when they provide services to major organisations.

Consequently, cybersecurity preparedness across the supply chain is becoming an important part of national digital security.

Survey highlights the scale of the challenge

The Reuters survey was conducted by Nikkei Research between October 27 and November 6.

Researchers contacted 508 Japanese companies, of which 214 participated on the condition of anonymity.

The responses provide an indication of how businesses are assessing cybersecurity risks and preparing their budgets for the coming period.

Although the findings do not represent every company operating in Japan, they demonstrate the extent to which digital threats have entered corporate risk-management discussions.

The survey also highlights a distinction between experiencing an attack and suffering an operational impact. Some companies reported incidents without measurable damage, while others faced interruptions affecting their business activities.

This distinction is important because the absence of visible disruption does not necessarily mean that an organisation’s systems have remained completely secure.

Businesses may experience attempted intrusions, compromised accounts or other incidents without immediately identifying their full consequences.

Improved monitoring and incident reporting are therefore essential for understanding the actual level of exposure.

Government and private sector cooperation

The findings are likely to reinforce the importance of cooperation between Japanese authorities, technology companies and private-sector organisations.

Cybersecurity threats frequently cross geographical boundaries, with attackers using infrastructure and digital services located in multiple countries.

Responding effectively requires information sharing, technical expertise and coordination between organisations responsible for investigating incidents and protecting critical systems.

Government support can also help smaller businesses improve their preparedness through technical guidance, training programmes and access to specialist assistance.

For major corporations, regular security assessments and stronger supplier requirements can help reduce weaknesses across interconnected networks.

As artificial intelligence becomes more accessible, the ability to identify emerging threats and respond quickly will become increasingly important.

Japan’s experience reflects a wider international challenge in which digital expansion is accompanied by new security responsibilities.

The survey indicates that businesses are preparing to spend more on cybersecurity, improve employee awareness and strengthen recovery arrangements.

However, the continuing evolution of cybercrime means that companies will need to regularly review their strategies and adapt to new attack methods.

The growing emphasis on prevention, early detection and recovery suggests that cybersecurity is becoming an essential part of business continuity planning in Japan.