Japan firms compensate customers as cyberattacks disrupt digital services

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Rising cyberattacks push Japanese companies to pay users and strengthen defences
Rising cyberattacks push Japanese companies to pay users and strengthen defences

A growing wave of cyberattacks across Japan has disrupted online services, exposed customer information and increased concerns about the financial impact of cybercrime. Several companies are now offering compensation to affected users as businesses and authorities work to strengthen their cybersecurity measures.

GMO Internet Group said customers affected by unauthorised access to its foreign exchange trading service would receive compensation for their losses. The company will also pay every customer 5,000 yen (about $32) as “an initial gesture of good faith” and provide an alternative service free of charge for 6 months.

The company reportedly received an extortion demand from a party believed to be behind the attack, threatening to expose company and customer information if payment was not made. GMO said it would not comply and would coordinate its response with police and other authorities. Its shares fell sharply following the incident.

Japan steps up AI-powered cyber defence

The government plans to establish a team that will use artificial intelligence to simulate cyberattacks and identify weaknesses in technology systems. The move follows the disclosure of critical vulnerabilities in PHP, a programming language widely used across the internet. The flaws triggered millions of hacking attempts and disrupted government and company websites in Japan, Europe and other regions.

Experts warn that AI is helping cybercriminals automate vulnerability scanning and phishing campaigns, making attacks faster, cheaper and harder to detect.

Japan recorded 723 cybersecurity incidents between January and October 20, exceeding the annual totals reported in both 2024 and 2025. The figures highlight the growing pressure on organisations to improve their security measures.

Data breach adds to business costs

Separately, Park24, which operates the Times car-sharing service, announced payments of 3,000 yen to customers affected by a personal data breach.

The company also said it would stop retaining images of identity documents after completing registration verification. It expects to record an extraordinary loss of 5.5 billion yen for incident response and customer compensation.

The incidents have raised concerns about weaknesses in how companies protect customer data. Businesses may face higher costs as they strengthen their defences, particularly those with large digital networks and inadequate software patching practices.

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