Management of GMO Payment Gateway accept pay cuts over credit card information leak - FinanceFeeds

Management of GMO Payment Gateway accept pay cuts over credit card information leak

Japanese business ethics is on display, as three members of GMO PG’s Board of Directors accept salary reduction.

The Japanese business world has long served as an example of high-class corporate ethics and discipline. That is why it is hardly surprising that the management of Japanese provider of payment processing services GMO Payment Gateway Inc (TYO:3769) has assumed responsibility for the recent incident that saw important credit card information leak from two of the company’s client websites – those of the Tokyo Metropolitan Government and the Japan Housing Finance Agency.

GMO Payment Gateway has earlier today issued a detailed report into the incident and the measures implemented in its aftermath. The company stresses the responsibility to be born by its management, with three of the Board Members to accept salary cuts.

Issei Ainoura, President & Representative Director, will take a 30% monthly salary cut for a period of three months. Satoru Isozaki, Executive Vice President and General Manager of the System Division, is accepting the same cut. Shinichi Sugiyama, Director, General manager of the System Division and General Manager of the IT Service Department, will take a 10% salary cut for a month.

The salary cuts come on top of stricter risk management measures and internal security policies implemented by GMO Payment Gateway following the incident on March 9, 2017. A number of investigations, including ones conducted by external experts have confirmed unauthorized access by a third party to credit card information belonging to users of the Tokyo Metropolitan Government credit card payment site for metropolitan tax, as well as the credit card payment site for group life insurance rider of the Japan Housing Finance Agency.

According to preliminary estimates (which were revised afterwards, with regards to “doubling of information”), the number of “units of information” leaked through the Tokyo Metropolitan Government website is 676,290, including 614,629 email addresses, as well as 61,661 credit card numbers and credit card expiration dates. The number of “units” of credit card information reportedly leaked from the Japan Housing Finance Agency is 43,540.

Whereas, in late April, the Tokyo Metropolitan Government confirmed the safety of the credit card payment site and announced its relaunch, there is no clear date for the relaunch of the credit card payment website of the Japan Housing Finance Agency.

The latest report by GMO Payment Gateway says there is no information on any use of the leaked data.

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