In preparation for the 2020 Tokyo Olympic and Paralympic Games, the Financial Services Agency (FSA) will conduct a thorough inspection of financial institutions’ preparedness against cyberattacks. In October, the FSA will conduct a simulation exercise for about 120 banks and insurance firms to identify any vulnerabilities in their core systems and call for the improvement of measures found to be insufficient. Japan aims to bolster the financial infrastructure’s defense capabilities as there have been large-scale attacks on concerned organizations during recent Games.
The FSA plans to perform the largest-ever exercise in early October. Cryptocurrency exchange operators will also participate in the exercise.
The exercise will envisage a scenario where payment systems cease to function in the wake of a “distributed denial-of-service (DDoS) attack.” The FSA will examine financial institutions’ procedures, including their emergency response, coordination with system operators, and manner of handling customers.
In addition to the exercise, the FSA will begin work to identify system vulnerabilities. It will check antivirus software on PCs, the management of log-in IDs and passwords, and the detection of improper communications.
Based on the results of the exercise, the FSA will identify financial institutions whose systems are inadequate. It will conduct an on-site inspection and call for improvement if companies are found vulnerable to the risk of cyberattack. “We want to use the Olympics as an opportunity to increase the security level of the entire industry,” said a senior FSA official. (Abridged)