Japanese virtual desktop cloud hacked so hard it asks to be banned

Japanese ISP GMO Internet has reported a massive security breach in their virtual desktop cloud service called Onamae.com Desktop Cloud. The service, primarily used by foreign exchange traders, was infiltrated by a malicious third party who installed harmful programs into the server environments of some customers. This breach led to unauthorized operations on trading accounts, potentially exposing users' passwords and trading information.

In response, GMO advised customers to change their trading account passwords, preferably using a separate device not used for trading purposes.

The company has since disclosed that its systems contained security vulnerabilities, unauthorized access, and customer data being exfiltrated. Some customers have even reported unrecognized transactions in their accounts. In an alarming turn of events, GMO received a ransom demand from the attacker - $50 million - threatening to expose sensitive information about the company and its customers if they refused to pay.

In light of the incident, GMO has offered a token consolation payment of ¥5,000 ($32) per affected user and pledged to reimburse any trading losses caused by the breach. CEO Masatoshi Kumagai acknowledged that the payment was merely a gesture of goodwill, stating that it would not resolve the issue. He vowed to invest in a free alternative environment for six months, overhaul the system infrastructure, and conduct a thorough investigation with external experts' assistance.

However, Kumagai admitted that the company's response to the breach was insufficient in speed and depth, allowing the attackers to exploit the vulnerability. He also revealed that the company had previously received warnings about the service's security from their own white-hat hackers. Kumagai expressed regret that despite having skilled professionals on staff, they failed to fully capitalize on their expertise to implement effective defenses.

Kumagai pointed out that advancements in AI technology have made cyberattacks more accessible, enabling anyone with the right tools to launch attacks. He called for public-private partnerships to improve cybersecurity across Japan and submitted a proposal to the government for proactive cyber defense measures. The CEO emphasized that refusing to pay the ransom would not guarantee the removal or prevention of the stolen information misuse.