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

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

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TOKYO, Nov 12 : 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 per cent of respondents said cyberattacks on their systems or those of their service providers had disrupted operations, while 22 per cent reported cyberattacks that caused no damage. Just over half said they had not been targeted, with the remainder unsure.

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

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"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 per cent strengthened employee training and anti-phishing steps, 32 per cent stepped up ransomware countermeasures and data backups, and 22 per cent introduced stricter information management.

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

"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 per cent 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 per cent this year, topping the 5 per cent 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 per cent 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 per cent-5 per cent, one-third selected 1 per cent-3 per cent and 12 per cent picked 5 per cent-7 per cent.

Source: Reuters

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