Japanese firms pledge compensation as cyberattacks disrupt internet services
Following a wave of cyberattacks that crippled internet infrastructure, Japanese companies are offering compensation to users and the government is launching AI-driven simulations to identify system weaknesses.
Japanese companies announced plans to compensate users after a series of cyberattacks disrupted internet services and raised concerns about economic stability. The attacks, linked to vulnerabilities in the widely used PHP programming language, prompted widespread outages on government and corporate websites in Japan, Europe and elsewhere.
"The internet itself is now starting to break down," said Kumagai, whose group includes internet infrastructure and cryptocurrency trading.
"The internet is increasingly being transformed into a tool that malicious actors use to threaten and rob people," Kumagai added.
In response, the Japanese government said it will create a team to simulate cyberattacks using artificial intelligence to pinpoint weaknesses in technology systems. Kumagai urged the government to adopt stronger cyber-defence measures, including the possibility of offensive actions against hostile servers.
"Now is the time for the public and private sectors to work together to protect Japan," he wrote.
GMO, one of the affected firms, reported a ransom demand from a party believed to be behind the attack and declined to comply, coordinating its response with police. The company will provide a free alternative service to customers for six months but could not estimate the financial impact of goodwill payments and compensation.
Analysts noted that the scale of the incidents—723 reported cybersecurity events by October 20—highlights gaps in data-protection capabilities and could lead to substantial additional costs for firms seeking to enhance security measures.
"Companies already have standard security measures in place, so if they want to strengthen them further, there is a possibility that the additional cost burden could be quite substantial," said Shoichi Arisawa, analyst at IwaiCosmo Securities.
ESET Japan’s president, Satoshi Nagano, said the rise in reported incidents may reflect both heightened threats and improved visibility into attacks that previously went undetected.
One firm announced it would cease retaining identity document images after verification and expects to record an extraordinary loss of 5.5 billion yen related to the attack response and compensation payments.
($1 = 156.8100 yen)