TOKYO - GMO Internet Group Inc. CEO Masatoshi Kumagai said Monday that the company had failed to adequately address a security vulnerability despite being alerted to the weakness in 2024, before a recent cyberattack resulted in a data leak.
At the firm's first press conference since the cyberattack surfaced last month, Kumagai apologized for the incident and damage to customers' assets. The company announced that Kumagai and three other executives will be slapped with pay cuts.
"We were not able to utilize (the vulnerability alert) in the operation of the service," said Kumagai, who will take a 30 percent cut in his remuneration for three months.
"We deeply apologize to our customers for not being able to protect them," he added.
Experts at a group company flagged the vulnerability in April 2024.
The company had concluded that the problem was fixed through extraordinary maintenance work after it was brought to its attention, but an executive said at the press conference, "Our risk analysis was insufficient."
An attacker intruded the server on Aug. 5 this year. GMO was unaware of the attack until Oct. 20, a day after a customer inquired about some suspected unauthorized transactions, and it confirmed that a third party had installed an unauthorized program in the server environments of some customers.
The unauthorized access targeted the Onamae.com Desktop Cloud service, which is used for foreign exchange trading.
The intrusion route and the full scope of financial damage inflicted by the unauthorized access are not yet known, according to the company.
Sources close to the matter say GMO told the government that a North Korea-linked hacking group was likely behind the cyberattack. But the company did not elaborate on the matter at its press conference.
Tokyo police have launched an investigation involving some 70 investigators into a suspected violation of the law prohibiting unauthorized computer access, investigative sources said Monday.
GMO consulted the Metropolitan Police Department on Oct. 22.
The alleged attacker has not contacted GMO since the night of Oct. 23, the company said.
On Oct. 27, a hacker believed to be behind the unauthorized intrusion disclosed some customer information after threatening to release it.
In a statement, the hacker claimed that information linked to one GMO customer had been posted online after the company failed to respond to a $1 million ransom demand.
The disclosed information included a name, address and other personal details, though its authenticity was unclear.
