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GMO Internet Group apologizes after cloud breach, pledges payouts
GMO Internet Group said Monday that unauthorized access to Onamae.com Desktop Cloud produced more than 26,000 cases of leaked data and disputed transactions, and pledged compensation (AP, via Japan Today).
- Japan Today is now reporting this
- New headline Was: “Japanese online service company GMO apologizes for security breaches and promises compensation”
- Our desk filed its story
Based on reporting by Japan Today
Wire reporting: (AP, via Japan Today)
GMO Internet Group apologized Monday in Tokyo after saying unauthorized access to its Onamae.com Desktop Cloud service produced leaked information and transactions customers said they did not make, with more than 26,000 cases affecting dozens of securities firms and other businesses, according to Associated Press reporting carried by Japan Today1.
Chief executive Masatoshi Kumagai, who founded the Tokyo internet-services company in 1991, said GMO had received an internal warning about a systemic weakness and did not act adequately, according to that report1. The company said it is offering $1 million for information that leads to identifying and arresting those responsible, with more than 400 submissions to a bounty site as of last week1.
GMO said it would compensate for losses, pay 5,000 yen (about $30) to all customers as a goodwill payment, and move to a new security system1. Kumagai is taking a 30% pay cut for three months, with smaller cuts for other senior executives, the AP reported1.
A GMO Internet Group disclosure dated Oct. 23 said GMO Internet, Inc. confirmed unauthorized access to Onamae.com Desktop Cloud, listed 26,739 servers as potentially affected, and said it consulted police on Oct. 22. The financial effect on GMO is still unclear; the Monday news conference began after Tokyo trading closed, and the company’s shares are down 17.5% so far this year, according to the AP report1.