Japan Firms Pay Out $32 To Users After Cyberattacks
GMO Internet compensates customers with initial gesture of good faith after major cyberattack, as Japan sets up AI-powered team to simulate attacks and identify weaknesses
Japanese companies, including GMO Internet, are taking steps to compensate users after suffering major cyberattacks, with significant financial losses and a decline in stock prices for affected companies.
GMO Internet will compensate customers for losses stemming from unauthorised access following a cyberattack on its foreign exchange trading service. As an initial gesture of good faith, all GMO Internet customers will receive 5,000 yen (US$32).
The company's decision comes after its market value was affected, with shares slumping 11 per cent in Tokyo on Monday morning. GMO Internet had a market value of US$2.6 billion as of Friday's close.
The Japanese government has also taken steps to address the issue, announcing on Friday that it will set up a team to simulate cyberattacks using AI to identify weaknesses in technology systems. This move is aimed at curtail risks from flaws in the PHP programming language that underpins much of the internet.
## Why it matters The cyberattacks have significant implications for the Japanese economy, with experts saying that AI is making cybercrime faster, cheaper and harder to detect. The attacks have led to a decline in stock prices for affected companies, including GMO Internet, and have resulted in financial losses for customers. The Japanese government's decision to set up a team to simulate cyberattacks using AI is a step towards addressing the issue and identifying weaknesses in technology systems.
The CEO of GMO Internet, Masatoshi Kumagai, announced the compensation plan in a blog post on Sunday, highlighting the company's efforts to make amends with its customers. The move is seen as a positive step towards rebuilding trust with customers and addressing the financial losses incurred due to the cyberattack.
As the Japanese economy continues to grapple with the aftermath of the cyberattacks, the government's efforts to simulate attacks and identify weaknesses will be crucial in preventing future incidents. The use of AI to simulate cyberattacks is a significant step towards enhancing cybersecurity and protecting companies and customers from financial losses.
