Japan criticises Fujitsu for cloud security failings

Japanese government criticises tech giant Fujitsu for its cybersecurity failures, indicating the risk of rising ransomware attacks on APAC companies

The Japanese government recently openly criticised leading technology company, Fujitsu, for its cybersecurity and cloud security failings.

Fujitsu operates its cloud FENICS where, in February 2023, the company admitted that it had detected network misconfigurations in December 2022 that allowed unauthorised remote access to the service.

However, at the end of June 2023, the Ministry of Internal Affairs and Communications in Japan actually issued a public statement calling for the company to do better. It has requested that the tech giant give a full account of all FENICS breaches and remediation, as well as for management to make infosec a clear priority.

Global cybersecurity threatened with mishandled data

Fujitsu supplies internet services to thousands of companies across Japan. The government has now cited poor governance on the company’s part for data leaks that impacted a minimum of 1700 companies and government agencies, as well as it taking eight months to discover the issue. 

Data breaches at such a significant level could contribute to a rise in ransomware attacks across the country. It was reported in April 2023 that ransomware attacks alone increased dramatically by 58% last year according to the National Police Agency in Japan. This includes a wide range of hacking incidents, which at the time was said to cause potential supply chain disruption for the technology industry.

Companies were still coming forward until recently to confirm that they were impacted by last year’s hacking attack. These include tech giant Kyocera, clothing brand Goldwin and large organisations like Tokio Marine and Nichido Fire Insurance.

Tokio Marine, the leading underwriter of cyber insurance in Japan, had to write to its corporate clients to discuss the breach and the potential loss of data, according to Insurance Business.

APAC technology growth calls for better data protection

These data leaks also speak to a wider cybersecurity issue across the Asia-Pacific region currently. In particular, India is witnessing an exceptionally high demand for cybersecurity jobs, highlighting a shortage of highly skilled workers in conjunction with increasing cyber attacks.

The Register reported that technology across the APAC region has grown, citing analyst firm IDC recently predicting that IT spending will rise by 4.4% in 2023, having previously been 3.8% in 2022. These statistics arguably highlight that businesses are not only seeing value in improving technology for growth, but also to protect valuable data and assets.

Fujitsu has now launched a new platform, as of June 30th 2023, designed to connect different economies using blockchain technology. With the trial having recently completed, which used the company’s blockchain technology ConnectionChain, it aims to focus on improving cross-border securities in Japan, China, South Korea and other Southeast Asian nations.

Based on the outcomes of the trial project, the company’s press release states that it will begin to launch the Fujitsu Web3 Acceleration Platform.


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