The Financial Services Agency (FSA) of Japan recently issued a warning about the increasing threat of hacked trading accounts, which has resulted in unauthorized trades amounting to almost US $700 million since March. The FSA noted a significant rise in fraudulent trades, with the number increasing from 33 in February to 685 in March and further to 736 in the first half of April. These attacks have targeted accounts in at least six securities firms.
The FSA attributed the stolen login information to fake websites (phishing sites) masquerading as real securities companies. Additionally, the Japan Securities Dealers Association (JSDA) pointed out that infostealer malware was also responsible for some stolen credentials. The surge in compromised accounts has been exploited by cybercriminals to launch phishing attacks, as reported by the JSDA.
Moreover, the unauthorized access to accounts has seen a sharp increase, with the number rising from 43 in February to 1,422 in March, and reaching 1,847 in the first half of April. This three-month total of 3,312 compromised accounts has raised concerns about the security of trading accounts in Japan.
The FSA highlighted a worrying trend where fraudsters gain access to victim accounts and manipulate them to carry out fraudulent trades, specifically involving Chinese stocks. The proceeds from these transactions are then used to purchase Chinese stocks, ultimately leaving them in the victim accounts. This raises concerns about potential share price manipulation by the fraudsters to influence the market.
While the total sales and purchase amounts for the fraudulent trades over the last three months were disclosed by the FSA, the agency clarified that these figures do not represent actual investor losses but rather the total value of the transactions conducted. It is crucial for investors to remain vigilant and take proactive steps to protect their trading accounts from unauthorized access and fraudulent activities.
Both the FSA and JSDA have issued recommendations for investors to safeguard their accounts against hacks. These include avoiding opening links from unknown sources, bookmarking the correct website URL for security companies, enabling enhanced security features like multi-factor authentication, and regularly monitoring account activity for any suspicious transactions. Additionally, the use of strong and unique passwords, coupled with frequent password changes, is advised to enhance security.
In conclusion, the threat of hacked trading accounts in Japan poses a significant risk to investors, with cybercriminals exploiting vulnerabilities to carry out fraudulent activities. It is essential for investors to stay informed and implement robust security measures to protect their accounts and investments from unauthorized access and financial losses. By following the guidelines provided by regulatory authorities and practicing good cybersecurity hygiene, investors can minimize the risk of falling victim to account hacks and financial fraud.