Brokerage (and bank) hacking

[ToushiTime]

I posted a similar question elsewhere but will ask here too.

How common are these incidents and are what laws and systems are in place to compensate the victims?

https://www.asahi.com/sp/ajw/articles/13736092

https://www.nippon.com/en/in-depth/d00628/amp/

[mighty58]

How common? Not very... probably akin to an earthquake in terms of likelihood, ie. a hack to your financial institution is probably likely to happen at some point, but the severity of said hack will vary widely, with most, if not all, being small and not negatively affecting you personally. In the unlikely event you are negatively affected, through no fault of your own, the chances of compensation from your financial institution are high (much like theft from a credit card).

Given all that, if you want to worry about potential catastrophic incidents, there are plenty of other frequently-occuring events that you would probably be better off dedicating your time and brain power to worrying about than a massive hack of a financial institution, stuff like ensuring you don't marry the wrong partner, avoiding getting hit by a car, keeping your job, etc.

[beanhead]

Why post the same question in different sub-boards? (or whatever these things are called)

[ToushiTime]

How common? Not very... probably akin to an earthquake in terms of likelihood, ie. a hack to your financial institution is probably likely to happen at some point, but the severity of said hack will vary widely, with most, if not all, being small and not negatively affecting you personally. In the unlikely event you are negatively affected, through no fault of your own, the chances of compensation from your financial institution are high (much like theft from a credit card).

Given all that, if you want to worry about potential catastrophic incidents, there are plenty of other frequently-occuring events that you would probably be better off dedicating your time and brain power to worrying about than a massive hack of a financial institution, stuff like ensuring you don't marry the wrong partner, avoiding getting hit by a car, keeping your job, etc.

It’s not something I think about regularly. It just came to mind a few days ago when I remembered someone on here saying they were more worried about hacking than bank or brokerage collapses, which makes sense given the 10m yen protection.

[ToushiTime]

Why post the same question in different sub-boards? (or whatever these things are called)

Sorry. I gave up waiting for an answer.
Looks like I got one here instead.

[captainspoke]

If it's a security failure on the broker's side, I'd expect them to make anyone/everyone whole.

If it's a security failure on the customer/client side, likely not. So phishing, lax home security, and probably other things.

That's pretty much what my US broker says. (tho they do have good 2fa, not just an sms code to your phone)

[ToushiTime]

That's pretty much what my US broker says. (tho they do have good 2fa, not just an sms code to your phone)

I hear you on the implied dig about "sms".
Japan is a Tier-Three nation for cyber security/intelligence
https://www.cybersecurityintelligence.c ... -5757.html
https://www.ccrc.keio.ac.jp/why-cyber-d ... nreliable/
All we can do is use the best security on offer, and leave the rest to the courts.
It is not something I worry about often. I was just curious to know which piece of legislation is supposed to protect us.