Cyberattacks hit a third of Japan firms or their service providers this year: Reuters poll


Figurines with computers and smartphones are seen in front of the words "Cyber Attack" in this illustration taken, February 19, 2024. REUTERS/Dado Ruvic/Illustration

TOKYO, Nov 12 (Reuters) - One-third of ⁠Japanese firms have been hit by cyberattacks targeting either their own systems or those of external ⁠service providers this year, a Reuters survey showed on Thursday, prompting companies to ramp up spending ‌on cybersecurity.

The findings come after a series of major customer data breaches over recent months prompted the government last week to draw up an emergency package of countermeasures.

About 10% of respondents said cyberattacks on their systems or those of their service providers had disrupted operations, while 22% reported ​cyberattacks that caused no damage. Just over half said they had not ⁠been targeted, with the remainder unsure.

On cybersecurity ⁠spending, 3% foresee a sharp increase, 59% expect a moderate increase and 22% anticipate little change.

"It is an endless ⁠battle. ‌But we want to invest as much as possible to step up our security," a manager at a textile company wrote in the survey.

Among the surveyed companies, 63% strengthened employee training and anti-phishing steps, 32% ⁠stepped up ransomware countermeasures and data backups, and 22% introduced stricter information ​management.

Respondents could select multiple measures, so ‌the figures do not add up to 100%.

"It is difficult to achieve perfect protection against AI-driven ⁠attacks. We consider it ​important to implement measures aimed at minimizing the damage should such an attack occur," an official at a chemical company said.

Experts say AI is helping automate tasks ranging from scanning for software vulnerabilities to crafting phishing campaigns, making cybercrime faster, cheaper and harder ⁠to detect.

The poll was conducted by Nikkei Research for Reuters from ​October 27 to November 6. Nikkei Research contacted 508 companies, of which 214 responded on the condition of anonymity.

PAY RISES TO CONTINUE

On wage hikes for 2027, more than 80% of respondents said they expect to raise wages at roughly the ⁠same pace as in 2026.

Rengo, Japan's largest labour union umbrella group with seven million members, said in July that companies agreed to raise wages by an average 5.01% this year, topping the 5% mark for a third straight year amid persistent labour shortages.

"If pay hikes are not keeping up with rising prices, top talent will leave us," a ​manager at a transportation equipment maker said.

Several companies in the survey, however, voiced ⁠concerns over the sustainability of the current pace of wage increases.

"Wage hikes have continued at a rate of around 5% ​over the past few years, but we are getting closer to the ‌limit of our ability to maintain such a pace," ​an official at a retailer said.

Asked how much they expect to raise wages next year, nearly half of respondents chose 3%-5%, one-third selected 1%-3% and 12% picked 5%-7%.

(Reporting by Kiyoshi TakenakaEditing by Shri Navaratnam)

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