Over 3500 Fraudulent Trades Totaling 300 Billion Yen Hit Japanese Securities; SBI and Minister Kato Respond

Japan has experienced a rapid increase in unauthorized trading through hacked securities accounts, with losses exceeding 300 billion yen from January to April 2025. The Financial Services Agency (FSA) reported over 3,505 cases of fraudulent transactions during this period. In response, several major securities firms have committed to compensating affected customers, as insurance payouts have not been forthcoming. Financial Minister Kato has emphasized the need for heightened vigilance and collaboration with industry groups to address the issue. SBI Holdings, a prominent player in the securities sector, has pledged to employ all possible measures to strengthen account security. Meanwhile, Japan's five leading online securities companies reported a 2% decline in net profits for the previous fiscal year while exploring new partnerships following the conclusion of the NISA investment incentive program. Additionally, authorities dismantled an international fraud group based in Thailand that reportedly defrauded Japanese companies of around 1 billion yen through fictitious billing schemes.