# GMO Internet Group Faces Security Breach and Executive Pay Cuts Japanese firm promises compensation and bounty rewards following massive unauthorized cloud service access. - **Source:** [ABC News: Technology](http://abcnews.com) - **Published:** 2026-11-02 - **Topic:** [Software & Engineering](https://brifing.si/c/engineering) - **Original article:** - **On Brifing:** https://brifing.si/s/736fa73e-37a7-47f6-bb6e-ac50cec717f3 ## Unauthorized Cloud Access GMO Internet Group confirmed unauthorized access to its Onamae.com Desktop Cloud service, resulting in over 26,000 cases of leaked information. The breach impacted numerous securities firms and various business clients. Executives acknowledged that internal warnings regarding systemic vulnerabilities were previously ignored, leading to this significant failure in protecting sensitive customer data assets. ## Executive Accountability Measures CEO Masatoshi Kumagai announced a 30% salary reduction for himself over the next three months. Other top executives are also accepting smaller pay cuts to demonstrate accountability. Kumagai publicly apologized for insensitive social media posts made during the crisis, acknowledging that his behavior may have negatively impacted the feelings of affected victims. ## Compensation and Goodwill The company has committed to compensating victims for financial losses incurred during the cyberattacks. Additionally, GMO is offering 5,000 yen, approximately $30, to all customers as a gesture of goodwill. The firm is currently transitioning to a new security infrastructure to prevent future recurrences of these unauthorized access incidents and data leaks. ## Ransomware Attack Details GMO confirmed that the attackers utilized ransomware to compromise their systems. Despite the severity of the intrusion, the company officially refused to pay any ransom demands. They have instead launched a dedicated bounty site, offering $1 million for information leading to the identification and arrest of the perpetrators behind the cyberattack. ## Bounty Program Participation The newly established GMO Cybercrime Bounty site accepts submissions in English, Japanese, and Chinese to facilitate global intelligence gathering. As of last week, the company reported receiving more than 400 submissions from the public. This initiative aims to leverage external expertise to track the attackers who targeted their cloud infrastructure services. ## Financial Market Impact GMO shares have experienced significant volatility, declining 17.5% so far this year following the news of the security breaches. The company held its first news conference after trading closed in Tokyo to address these concerns. The total financial impact of the attacks on the firm's overall results remains currently unclear to investors. ## Broader Cybersecurity Context The incident highlights ongoing concerns regarding Japan's cybersecurity vulnerabilities, which experts suggest have been neglected for years. This event coincides with a global rise in high-profile cyberattacks, including a massive $6 billion cryptocurrency heist linked to North Korean hacking units. Prime Minister Sanae Takaichi has pledged to strengthen national cybersecurity measures accordingly. ## Future Operational Outlook GMO must now navigate the dual challenge of restoring customer trust and upgrading its technical defenses. While the company focuses on identifying the attackers through its bounty program, the long-term impact on its market position remains uncertain. Success depends on the effectiveness of the new security systems and transparent communication with all stakeholders. ## Sources covering this story - https://abcnews.com/Technology/wireStory/japanese-online-service-company-gmo-apologizes-security-breaches-137762833 — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._