By Karim Hammam
Japanese internet services company GMO has urged customers to back up data and disconnect computers from the internet after hackers began leaking information allegedly stolen in a cyberattack affecting more than 26,000 servers. The attackers have threatened to continue publishing customer data individually unless GMO pays a $1 million ransom.
Hackers Leak Data, Demand $1M Ransom
The hacker group set a noon deadline for payment but said GMO is not engaging in negotiations. GMO confirmed on Tuesday that individuals believed to be behind the attack published material they claimed was connected to the company and its customers. The company is examining the material for authenticity and warned some published claims may be inaccurate. GMO refused to pay the ransom, stating there is no guarantee the stolen information would be deleted and it could still be used for illegal activities.
Government Responds, Orders Cybersecurity Package
Prime Minister Sanae Takaichi, after an emergency meeting with ministers, described the recent series of cyberattacks against Japanese companies as serious, with growing concerns about civil damages from misuse of leaked information. She asked her government to produce a package of cybersecurity measures by the end of next week.
GMO Investigates, Offers Compensation
The breach disclosed last week potentially affected 26,739 servers, including those used for clients' trading accounts across more than 70 securities firms, foreign-exchange providers, and other businesses in Japan and overseas. Reports of unauthorized transactions involving some customer trading accounts have emerged. GMO pledged to compensate customers for confirmed losses from unauthorized transactions and announced a 5,000 Japanese Yen (£23) goodwill payment for affected service users. The company will notify customers individually if investigators confirm their information was included in the published material.
CEO Warns Internet 'On Verge of Breaking Down'
GMO's CEO Masatoshi Kumagai wrote in a blog post on Sunday that now is the time to protect Japan and the internet through public-private cooperation. He assessed that "the internet itself is now on the verge of breaking down." The full extent of the breach, including the authenticity of all leaked information and the number of customers affected, remains under investigation.
