Japan companies compensate users as cyberattacks buffet economy

Japanese companies are compensating users following a surge in cyberattacks that have disrupted internet services and raised concerns about economic stability. GMO Internet, a leading internet company, announced they will provide 5,000 yen ($32) compensation to customers for losses due to unauthorized access in their foreign exchange trading service.

CEO Masatoshi Kumagai disclosed this in a blog post, emphasizing it as an initial gesture of goodwill. This action follows Japan's decision to establish a team simulating cyberattacks using AI to identify system vulnerabilities, as organizations strive to mitigate risks arising from vulnerabilities in the widely used PHP programming language.

GMO Internet's stock value fell by 11% in Tokyo early trading, compared to flat trading in the benchmark index. A flood of cyberattacks has affected Japanese companies, with AI reportedly aiding in automating tasks like identifying software vulnerabilities and creating phishing campaigns, making cybercrime swifter, more affordable, and more difficult to detect.

Government and corporate websites across Japan, Europe, and elsewhere went offline last week following the revelation of critical PHP language vulnerabilities, leading to millions of hacking attempts. GMO Internet sought cyber defense measures from the Japanese government in response to the attack. The company reported receiving a ransom demand and a threat to reveal company and customer details if it did not comply.

GMO Internet chose not to fulfill the demand, intending to address the incident in cooperation with law enforcement and other authorities. Park24, which operates the Times car-sharing service, announced they would pay 3,000 yen to customers affected by a personal data breach.