Japan pushes for chip-based ID checks following major cyberattacks

Japan is pushing banks to use chip-enabled identity documents like passports and MyNumber cards instead of driving licences to open new accounts. The Financial Services Agency made this call on October 9 after a wave of cyberattacks exposed millions of customer records across public institutions and businesses. Over 20 major companies reported cyber incidents recently. Officials warn that sophisticated attacks could grow as artificial intelligence helps hackers find weak systems. In one major incident, East Japan Railway believes about 1.67 million customer email addresses may have been stolen through its booking system. SoftBank cloud services unit IDC Frontier also faced a ransomware attack, while convenience store giant Lawson, hospitals, government buildings, and transport firms were hit. Driving licence images from car-sharing operator Times Car may have been leaked and could sell on dark web markets for about 25 yen or 15 US cents apiece. The ruling Liberal Democratic Party held an emergency meeting on October 9. National Cybersecurity Strategy Headquarters head Masaaki Taira called the situation an emergency in cyberspace, and cybersecurity minister Toshiharu Furukawa warned of a very serious challenge. Experts point to Japan's ageing population, older business systems, and poor security practices as contributing factors. Masaki Hiraoka from cybersecurity firm Blackpanda notes that artificial intelligence could make smaller firms more vulnerable by speeding up security scans. South Korean President Lee Jae Myung is also investigating suspected AI-assisted bank cyberattacks.

Context

Digital identity verification systems are becoming a primary defence as organizations worldwide face increasingly complex cyber threats. Governments often update security protocols and encourage modern identification methods when legacy systems prove vulnerable to large-scale data leaks. Security experts generally recommend that businesses regularly update their software and improve access controls to prevent similar breaches.