By Fatma Younis
Japanese online service company GMO Internet Group apologized Monday for security breaches resulting from cyberattacks, promising to prevent a recurrence and compensate victims.
Unauthorized Access and Impact
The company confirmed that unauthorized access to its Onamae.com Desktop Cloud service led to leaked information and transactions customers did not initiate, affecting dozens of securities firms and other businesses. GMO said there were more than 26,000 such cases.
Executive Accountability
Chief Executive Masatoshi Kumagai and other executives bowed deeply at a Tokyo news conference, offering what Kumagai called his “deepest felt apologies.” He acknowledged that GMO had been warned internally about a systemic weakness to such attacks but failed to take proper action. Kumagai also apologized for recent social media posts, including a photo of him smiling, that he said may have hurt victims’ feelings. Kumagai will take a 30% pay cut for three months, while other top executives will take smaller reductions.
Compensation and Security Overhaul
GMO pledged to compensate customers for their losses and to pay 5,000 yen (about $30) to all customers as a goodwill gesture. The company also said it will switch to a new security system.
Broader Cybersecurity Concerns
The breaches have highlighted Japan’s cybersecurity vulnerabilities, which experts warn have been neglected for years. The incident follows a massive cryptocurrency heist at Binance, where hackers stole more than $6 billion in what appears to be the largest such theft on record, attributed to a North Korean hacking unit. Prime Minister Sanae Takaichi has promised to strengthen Japan’s cybersecurity measures, though the government declined to comment on the GMO case or possible suspects.
Bounty for Attackers
GMO acknowledged that the attackers deployed ransomware and said it refused to pay. The company is offering $1 million for information leading to the identification and arrest of the perpetrators, and has launched a “GMO Cybercrime Bounty” site accepting tips in English, Japanese, and Chinese. As of last week, more than 400 submissions had been received.
Financial Impact
The impact on GMO’s financial results remains unclear. The company’s shares, which have fluctuated over the past year, declined after news of the cyberattacks surfaced and have fallen 17.5% so far this year.
