Japan is facing a growing cybersecurity crisis as hackers increasingly use artificial intelligence and stolen personal data to carry out sophisticated attacks against businesses and individuals, according to cybersecurity firm Trend Micro.

Eva Chen, co-founder and CEO of Trend Micro, has warned that cybercriminals are combining information obtained from multiple data breaches with AI to impersonate individuals, create convincing phishing scams and gain access to corporate networks.

Speaking to reporters at the company’s headquarters in Tokyo, Chen described the escalating threat as the beginning of a new wave of cybercrime, with stolen personal information being repeatedly exploited to launch further attacks.

The warning comes as Japanese businesses across several industries, including financial services, automotive and e-commerce, experience a sharp increase in cybersecurity incidents.

According to Trend Micro, Japan recorded 607 publicly disclosed cyber incidents between January and September 2026, already surpassing the 594 incidents reported throughout 2025.

Chen believes the increasing speed of these attacks suggests hackers are using AI to automate their operations, particularly when exploiting stolen login credentials and extracting sensitive corporate information.

In one incident highlighted by Chen, cybercriminals managed to steal an organisation’s entire customer database within just four days of gaining access to its systems. The stolen information was subsequently used to support further malicious activity.

While Trend Micro could not identify the specific AI models being used, Chen said the speed and methods employed by attackers strongly suggested AI was playing a growing role.

Japan has become an attractive target for financially motivated cybercriminals because of its economic strength and the extensive customer information maintained by local businesses.

Chen explained that Japanese companies generally keep highly detailed and well-organised customer records, making stolen databases particularly valuable for criminals seeking to conduct targeted fraud and identity theft.

The country’s large manufacturing sector is another potential target, with ransomware attacks capable of disrupting production and causing substantial financial losses.

Among the cybercriminal organisations identified by Trend Micro were ransomware groups Qilin and The Gentlemen, which Chen said were primarily focused on financial gain rather than political objectives.

AI is also helping criminals overcome language barriers that previously made phishing attempts easier to recognise.

In the past, fraudulent emails originating overseas could often be identified by poor Japanese grammar or awkward translations. However, generative AI now enables attackers to produce natural-sounding messages that are considerably more difficult to distinguish from legitimate communications.

Chen also raised concerns about the pace at which Japanese businesses are upgrading their cybersecurity systems, suggesting some organisations have become overly reliant on existing infrastructure.

As an example, she pointed to the adoption of Trend Micro’s corporate security platform, which stands at approximately 20% in Japan compared with more than 50% globally.

To help address the growing threat, Trend Micro has announced plans to provide Japanese businesses with up to 10 billion yen, or approximately US$63 million, in cybersecurity software licence credits, along with technical assistance.

The initiative will initially prioritise large enterprises, critical infrastructure providers and smaller companies operating within their supply chains.

Chen warned that as AI becomes more widely used by cybercriminals, businesses face an increasingly dangerous cycle in which stolen personal information can be exploited to launch new attacks, potentially exposing even more sensitive data.