Japan brokers to compensate victims of hacked trading accounts

Japan’s top securities firms will compensate customers hit by unauthorised stock trades following a rise in account hijackings, the Japan Securities Dealers Association said. The move marks a shift from previous policies that excluded liability for fraud when correct login credentials were used. Ten firms, including Nomura, Daiwa, and SBI Securities, will assess compensation on a case-by-case basis for incidents dating back to January. The decision follows a surge in phishing attacks where users are tricked into entering credentials on fake websites, allowing scammers to manipulate stock prices using hijacked accounts. Japan’s Financial Services Agency reported 1,454 fraudulent transactions between February and April. The association said the compensation plan is an exceptional measure to preserve trust in the securities industry amid rising cyber threats.