Nearly one-third of Japanese companies have experienced cyberattacks targeting their own networks or external service providers in 2026, according to a corporate survey. The findings highlight the growing cybersecurity challenges facing businesses as artificial intelligence (AI) makes certain cybercrime activities faster, less expensive and harder to detect.
The survey also indicates that companies are increasing their security budgets and strengthening employee awareness, data protection and recovery measures. However, the reported incidents suggest that businesses remain exposed to risks arising both within their own systems and across third-party technology networks.
Nearly One-Third of Japanese Businesses Report Cyber Incidents
The survey found that approximately one-third of participating companies had encountered cyberattacks involving their internal systems or external service providers.
Around 10% of respondents reported operational disruptions following cyber incidents. Another 22% experienced attacks without significant damage, suggesting that not every reported incident resulted in major business interruption.
The survey was conducted between October 27 and November 6, with responses from 214 of the 508 companies contacted.
The findings come amid concerns following several major customer data breaches in Japan. These incidents have added urgency to discussions around corporate data protection and national cybersecurity preparedness.
How Artificial Intelligence Is Changing Cybersecurity Risks
Artificial intelligence is changing the way cyber threats can be developed and carried out. Cybersecurity experts have warned that criminals can use AI-assisted tools to automate certain activities, including identifying software weaknesses and preparing convincing phishing communications.
Such capabilities may reduce the time and effort required to conduct cybercrime. They can also make fraudulent messages more difficult for employees and automated security systems to distinguish from legitimate communications.
For businesses, this creates additional challenges. Traditional security measures may not be sufficient on their own when threats can be generated and adapted at greater speed.
Organisations therefore need to review their security practices regularly, strengthen employee awareness and ensure that suspicious activity can be identified and reported promptly.
Japanese Companies Plan to Increase Cybersecurity Budgets
The survey suggests that businesses are increasingly recognising cybersecurity as an important operational investment.
Approximately 59% of respondents expected a moderate increase in cybersecurity expenditure, while 3% anticipated a significant rise. Another 22% expected their security budgets to remain largely unchanged.
These figures indicate that many companies are preparing to allocate additional resources to protecting their digital infrastructure.
Cybersecurity spending can cover several areas, including employee training, network monitoring, data protection, incident response and recovery systems. The appropriate investment depends on an organisation's size, technology environment and exposure to digital risks.
Employee Training and Anti-Phishing Measures Remain Priorities
Japanese companies are also focusing on practical measures to reduce the likelihood of successful cyberattacks.
According to the survey:
63% reported improving employee training and introducing stronger anti-phishing measures.
32% strengthened ransomware protection and data backup arrangements.
22% introduced stricter information management controls.
Respondents could select more than one measure, so the percentages are not mutually exclusive.
Employee awareness is particularly relevant because phishing and impersonation attempts frequently rely on people responding to misleading communications. Regular training can help employees recognise suspicious requests, verify unexpected instructions and follow internal reporting procedures.
Data backups and ransomware protection also play an important role in maintaining business continuity when systems are disrupted.
Third-Party Service Providers Create Additional Exposure
The inclusion of attacks involving external service providers highlights another important aspect of corporate cybersecurity: organisations do not operate in isolation.
Many businesses depend on outside technology companies for software, cloud infrastructure, payment processing, data storage and other essential services. A security incident involving one of these providers can potentially affect several customer organisations.
This means that protecting internal networks alone may not be enough. Businesses also need to understand the security practices of their vendors and assess the potential consequences of disruptions across their supply chains.
Third-party risk reviews, clear security requirements and appropriate incident-reporting arrangements can help organisations manage these dependencies.
What the Survey Means for Businesses
The findings point to a changing cybersecurity environment in Japan, where companies are preparing for threats involving both traditional attack methods and AI-assisted activities.
Increasing security expenditure, improving employee training and strengthening recovery arrangements are among the measures businesses are adopting. However, the survey also shows that cyber incidents can affect operations even when an organisation relies on external service providers.
For companies operating in increasingly digital business environments, cybersecurity is therefore not limited to technical protection. It also involves financial risk management, internal controls, vendor oversight and business continuity planning.
Organisations reviewing their internal processes may also consider professional internal audit services to assess control frameworks, identify process weaknesses and improve oversight of operational risks.
As AI tools continue to evolve, regular security assessments and preparedness planning are likely to remain important priorities for Japanese businesses.