Japanese companies compensate users as cyberattacks buffet economy

Japanese companies are compensating users following a series of cyberattacks that have disrupted internet services and raised concerns about economic stability. GMO Internet Group, a major provider of online financial services, offered to compensate customers for losses stemming from unauthorized access following a cyberattack on its foreign exchange trading service.

All customers received a goodwill gesture of 5,000 yen (US$32), CEO Masatoshi Kumagai announced in a blog post. The Japanese government plans to set up a team to simulate cyberattacks using AI to identify vulnerabilities in technology systems, as organizations grapple with the risks posed by flaws in the PHP programming language.

Japanese companies are facing cyberattacks that are becoming faster, cheaper, and harder to detect, thanks to AI-driven capabilities, according to experts. Shares of GMO, valued at US$2.6 billion, dropped 15 percent following the disclosure of critical vulnerabilities in PHP programming language, leading to millions of hacking attempts.

The government and company websites in Japan, Europe, and elsewhere went offline during the incident. GMO received a ransom demand from the attackers, who threatened to disclose company and customer information if their demands were not met. The company refused to comply and coordinated with police and other authorities to respond to the incident.

The company will provide a free alternative service to customers for six months and may provide compensation for losses, but it is currently unable to calculate the impact on earnings. There have been 723 cybersecurity incidents in the year to October, surpassing the annual totals in 2025 and 2024.