By Riley Walters
Both countries will need to pool resources to meet a rising threat.
While Washington has long considered the defense industry a critical part of the nation’s infrastructure, that has not been the case in Tokyo. Yet as Japan increases its defense exports in partnership with foreign defense industries, it is inevitable that more sensitive information will be shared between Japan and its partners. To counter future cyber threats, it is imperative that these partnerships develop strong information security protocols.
In the U.S., cyber-attacks on defense contractors are already commonplace. The Senate Armed Services Committee reported last month that hackers linked to the Chinese government broke into U.S. transportation contractors’ (PDF) systems in 2012. Earlier this year, a report showed Israeli defense contractor’s computers, which contained sensitive information on their Iron Dome systems, were also hacked by the Chinese in 2011. The Israeli defense contractors were also partners with U.S. defense contractors.
According to an annual report (PDF) by the Ponemon Institute, cyber-crimes – including intellectual property theft, inserting computer viruses, and distributing confidential information – cost each of the 59 U.S. companies surveyed an average of $12.7 million in 2014. That’s a record high, up almost 10 percent from the previous year. Costs ranged from as low as $1.5 million to $60 million. And it is only a fraction of the total cost of cyber-crimes. Another study (PDF), which includes lost opportunity and recovery costs, estimates the total cost at $100 billion annually for the U.S.
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