Japanese brokerage IwaiCosmo reports unauthorized trades from cyberattack

IwaiCosmo Securities discovered unauthorized trades executed through its trading platforms after detecting a cyberattack on its systems, the Japanese brokerage said. The incident compromised client accounts and resulted in transactions conducted without proper authorization, according to the company's preliminary findings.

The Tokyo-based firm said it has launched an investigation into the scope and scale of the unauthorized activity while working with cybersecurity experts to identify how the attackers gained access to its systems. IwaiCosmo notified relevant regulatory authorities and has begun contacting affected clients to assess potential losses.

IwaiCosmo, one of Japan's established securities firms, said it has taken measures to secure its systems and prevent further unauthorized access. The company pledged to provide updates as its investigation progresses and to implement enhanced security protocols to prevent similar incidents in the future.

The incident underscores growing cybersecurity concerns in Japan's financial sector, where brokerages and banks face increasingly sophisticated threats from malicious actors seeking to exploit vulnerabilities in trading systems.