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GMO Internet Compensates Users as Cyberattacks Hit Japanese Companies

GMO Internet

Japanese companies are starting to compensate customers after a run of cyberattacks disrupted internet services and stirred concerns about economic stability. GMO Internet is the latest to do so, pledging payouts after hackers breached its foreign exchange trading service.  In a blog post on Oct 25, chief executive Masatoshi Kumagai said customers would be compensated for losses caused by unauthorized access, and each would receive 5,000 yen (S$41) as “an initial gesture of good faith.”  Kumagai, whose group spans internet infrastructure and cryptocurrency trading, warned that “the internet itself is now starting to break down.” He added: “The internet is increasingly being transformed into a tool that malicious actors use to threaten and rob people.”  GMO Internet shares, worth US$2.6 billion (S$3.3 billion) in market value at the Oct 23 close, fell 11% in Tokyo morning trade while the benchmark index was flat.  The company said a party believed to be behind the attack had demanded money and threatened to disclose company and customer information. GMO Internet refused and said it would handle the incident with police and other authorities. It will give customers a free alternative service for six months, though it cannot yet calculate how the goodwill payments and compensation will affect earnings.  Kumagai said the company’s white-hat hackers had identified security issues, but the depth and speed of the response were insufficient. 

AI and PHP Flaws Put Japanese Companies at Risk

Experts say AI is helping attackers automate tasks from scanning for software vulnerabilities to crafting phishing campaigns, making cybercrime faster, cheaper and harder to detect.  On Oct 23, Japan said it would set up a team to simulate cyberattacks using AI to find weaknesses in technology systems. Organisations were rushing to limit risks from flaws in PHP, the programming language underpinning much of the internet. Last week, government and company websites in Japan, Europe and elsewhere went offline after critical PHP vulnerabilities were disclosed, prompting millions of hacking attempts. 

GMO Internet Chief Seeks Stronger Cyberdefence

Kumagai has asked the Japanese government to apply cyberdefence measures in response to the attack, following the introduction of a cyberdefence system in October. That system could involve steps such as attacking hostile servers to neutralise threats.  “Now is the time for the public and private sectors to work together to protect Japan,” he wrote. 

Rising Security Costs for Japanese Companies

The recent attacks have exposed weaknesses in how Japanese companies protect their large stores of customer data, raising the prospect of steep costs to shore up defences.  “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, an analyst at IwaiCosmo Securities.  TrendAI data shows 723 cybersecurity incidents in the year to Oct 20, more than the annual totals for 2025 and 2024. Satoshi Nagano, president of ESET Japan, said: “Reports may reflect both the threats organisations face and greater visibility into incidents that would previously have gone undetected, been underinvestigated, or remained undisclosed.”  GMO Internet is not alone in paying customers. Park24, which runs the Times car-sharing service, said on Oct 23 it would pay customers 3,000 yen each after a personal data breach. It will stop keeping identity document images once registration checks are done and expects an extraordinary loss of 5.5 billion yen from its response to the attack and compensation payments. 

No Lessons, No Test, No Travel: Dubai Police Bust AED 10,000 Licence Scheme

fake driving licence

No travel, no lessons, no test, and a UAE licence at the end of it. That was the promise behind a fake driving licence scheme that Dubai Police say has now been shut down. An eight-member criminal gang has been arrested for fraudulently obtaining driving licences from a neighbouring country for customers who had never been there, then helping them swap those licences for a UAE driving licence.

The gang charged AED 10,000 per licence. The arrests were made by Dubai Police’s General Department of Criminal Investigation, in cooperation with the UAE Ministry of Foreign Affairs and Dubai’s Roads and Transport Authority (RTA).

How the Fake Driving Licence Scheme Worked

Dubai Police’s Economic Crimes Department found that the gang exploited legitimate licence exchange agreements. These arrangements allow holders of driving licences issued by certain countries to exchange them for UAE licences without additional training or testing, provided they meet the necessary requirements.

The suspects used offices belonging to transaction processing companies in the UAE to approach potential customers and promote their services. They offered to arrange licences from a neighbouring country without customers needing to travel there, learn to drive or pass mandatory tests.

fake driving licence
Image Source: https://www.dubaipolice.gov.ae/

Once obtained, the licences could be presented for exchange through Dubai’s RTA. In effect, the scheme used an agreement designed to simplify the process for eligible drivers to bypass the training and testing meant to confirm that drivers are qualified.

Why Police Call It a Risk to Road Safety

Dubai Police warned that obtaining a licence through illegal means is more than a procedural violation. It can pose a serious threat to road safety.

Driving lessons and examinations assess whether motorists have the skills, knowledge and ability to handle different traffic situations. Skipping them could put unqualified drivers on public roads, endangering motorists, passengers, pedestrians and other road users.

The force urged residents to be cautious of individuals or businesses promising licences without the required training, testing or legal procedures.

Fake Driving Licence Buyers Could Face Legal Action

Police stressed that legal responsibility does not stop with those arranging the licences. Anyone who knowingly pays for a fake driving licence obtained through unlawful procedures may also face penalties and legal action.

Dubai Police also clarified a key point for buyers. Exchanging an illegally obtained foreign licence for a UAE licence does not make the original licence legitimate, and it does not exempt the holder from responsibility. Completing the official exchange process cannot be used to justify violations committed when the foreign licence was obtained.

What the Exchange Agreements Actually Allow

According to Dubai Police, international licence exchange agreements exist to make it easier to exchange legally issued licences that meet the relevant requirements. They do not allow applicants to bypass the rules that govern how licences are originally issued in their home countries.

The force urged anyone seeking a driving licence to follow approved procedures and deal only with authorised entities. Residents were also encouraged to report individuals or companies offering licences through unlawful means, to help authorities identify fraud and protect the community.

Dubai Police reaffirmed that properly trained and qualified drivers are fundamental to road safety, and that licence exchange arrangements must never be used to get around these requirements.

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