Japanese companies compensate users as cyberattacks buffet economy

Japanese firms are compensating customers after a series of cyberattacks disrupted internet services and raised concerns about economic stability. GMO Internet Group, a major player in internet services, announced that it would compensate customers for losses stemming from unauthorized access to its foreign exchange trading service, paying 5,000 yen (US$32) as an initial gesture.

CEO Masatoshi Kumagai stated this in a blog post, adding that all customers would receive this compensation as a goodwill measure. The company received a demand for money and a threat from the attackers, but refused to comply, instead coordinating with authorities to address the incident.

Japan's government is taking steps to mitigate cyber threats by setting up a team to simulate attacks using AI, with the aim of identifying vulnerabilities in technology systems. The PHP programming language, which underpins much of the internet, has been identified as a significant vulnerability, with millions of hacking attempts following its disclosure.

Recent cyberattacks have exposed weaknesses in Japanese companies' ability to protect customer data, with 723 cybersecurity incidents reported in the year to October 20, surpassing the totals from 2025 and 2024. Companies like Park24 are also implementing measures, such as discontinuing the retention of identity document images, to respond to breaches and mitigate losses.

While well-resourced companies can invest in stronger defenses, those with weak patching practices may struggle to keep up, particularly those with extensive digital networks.