cyberspace. While it is expected that cyberspace will become a space where everyone can participate with a sense of trust, gaps in literacy about cybersecurity and shortage or uneven distribution of workforce may be targeted by attackers as potential vulnerabilities. - Furthermore, shortage of human resources in business organizations and the technology field may lead to a situation in which Japan must rely excessively on foreign sources for products, services, and technology related to cybersecurity. The lack of literacy also poses the risk of creating new vulnerabilities through the misuse of devices and services. - Meanwhile, as services become more sophisticated, gaps formed in the process of coordinating digital services may become vulnerabilities for attackers to target, unless appropriate security measures are implemented. - In addition, as everything becomes connected to networks through increased use of cloud services, expansion and widespread adoption of products and services delivered through complex global supply chains, and greater use of IoT devices among industries, the impact of incidents on economic and social activities may affect a broader and more diverse range of stakeholders and situations, making it increasingly difficult to solve. - Moreover, the growing use of cloud services, combined with the expansion of remote work, is revealing the limitations of the traditional concept of boundary protection. 3. 1. 2 Risks from the perspective of international affairs - As cyberspace has become a realm of interstate competition, and due to anonymous, asymmetric, and cross-border nature of cyberattacks, there are increasing threats of organized and sophisticated cyberattacks, including those suspected of being state-sponsored, with the aim of service disruption of critical infrastructure, theft of personal information and intellectual property, and interference with democratic processes. - As wider sections of the economy and society are rapidly becoming digitalized, an increase in these types of cyberattack poses the risk of creating a graver situation that undermines the people’s safety and security as well as the foundation of a nation and democracy, resulting in evolving into an issue of national security. Cyberattackers are becoming increasingly adept at hiding and disguising their identities. In particular, cyber activities suspected of state involvement include cyberattacks presumed to be conducted by China to steal information from companies related to the military industry and possessing advanced technology, and by Russia to exert influence to achieve military or political aims. North Korea also conducts cyberattacks to achieve political aims or obtain foreign currency. In addition, it is observed that China, Russia and North Korea are continuing to build the cyber capabilities of their military and other institutions7. 7 For details, please see “4.3 Contributing to the Peace and Stability of the International Community and Japan’s National Security” 7

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