GMO tells account holders to prepare for the worst as hackers threaten exposure

GMO Internet Group is urging its clients to brace for a potential worst-case scenario as a hacker group threatens to expose personal data and launch a ransomware attack. The hacker group has warned account holders to back up their data and disconnect their computers before noon on Tuesday, October 27th. GMO has stated it will not pay the demanded ¥8 billion to avoid data exposure and warned the stolen information could still be misused.

After the deadline passes, the hacker group reportedly disclosed data on one client, despite GMO refusing negotiations. GMO disclosed last week that a security breach potentially impacted 26,739 servers connected to over 70 Japanese and international businesses, causing significant financial damage. Finance Minister Satsuki Katayama confirmed that five foreign exchange margin-trading services were compromised, with unauthorized trades occurring.

GMO is now working to analyze client computers to understand the attack and devise countermeasures, and has promised to compensate victims. Other cybersecurity firms are assisting GMO in this effort. GMO CEO Masatoshi Kumagai has called for public-private cooperation to protect Japan's internet infrastructure, expressing concerns that the internet may be on the brink of collapse.

Prime Minister Sanae Takaichi has tasked her government with developing a cybersecurity framework by the end of next week.