GMO Internet Group pledges $5,000 yen payout to clients after ransomware breach

Japanese internet services company GMO Internet Group has pledged to pay 5,000 yen, or roughly 30 dollars, to all its clients as a gesture of goodwill following a series of ransomware attacks. The company also promised to compensate victims for specific financial losses. The announcement came on Monday during a press conference in Tokyo, where executives acknowledged that unauthorized access to the Onamae.com Desktop Cloud service resulted in more than 26,000 instances of data leakage and unrecorded transactions.

Masatoshi Kumagai, who founded the company in 1991, apologized for the security failures. He stated that internal warnings had identified a systemic weakness against such attacks, but adequate measures were not taken. Kumagai also apologized for recent social media posts, including a photo of him smiling, which he acknowledged may have offended affected customers. To demonstrate accountability, Kumagai will reduce his salary by 30 percent for three months. Other senior executives will receive smaller pay cuts.

The breach impacted dozens of securities firms and other businesses. Japanese media reports indicate that large sums of money vanished from accounts without client authorization. GMO confirmed that the attackers used ransomware software to lock organizational equipment and demanded a payment. The company stated it refused to pay the ransom. It has since launched a program called GMO Cybercrime Bounty, offering a 1 million dollar reward for information leading to the arrest of the attackers. The firm reported receiving more than 400 tips by the previous week, which can be submitted in English, Japanese, or Chinese.

GMO provides internet services related to cybersecurity, online marketing, and infrastructure systems. It also supports robotics and artificial intelligence projects. The company plans to implement a new security system to prevent future incidents. The press conference marked the first public appearance by the company since the security issues became public. Kumagai spoke with emotion during the event, describing the effort to bring technology to clients.

The incident has drawn attention to cybersecurity vulnerabilities in Japan. Some experts have warned that these weaknesses have been underestimated for years. Prime Minister Sanae Takaichi has promised to strengthen the country's cybersecurity measures. The government has declined to comment on the specific GMO case or identify possible suspects. The timing of the breach coincides with growing global concerns about digital security, including a recent major theft from Binance.

Financial markets have reacted to the news. GMO shares have fallen 17.5 percent year to date. The stock price dropped after the cyberattack news emerged, though the precise impact on financial results remains unclear. The press conference began after the Tokyo stock exchange closed for the day. The company has not yet released detailed financial data regarding the cost of the breach and the compensation plan.