Security measures after information leakage cost GMO Payment Gateway $2.4 million

Maria Nikolova

The company books JPY 270 million (USD 2.4 million) extraordinary loss for the second quarter of the fiscal year to September 30, 2017, because of the credit card information leak.

Information security is a money-sensitive issue for financial services firms, with the precise cost of an incident related to a data breach just determined by Japanese provider of payment processing services GMO Payment Gateway Inc (TYO:3769).

In its report for the second quarter of the fiscal year to September 30, 2017, the company said it incurred extraordinary losses of JPY 270 million (USD 2.4 million) during the period with relation to the incident from early March this year, which saw a third party gain unauthorized access to personal credit card data from the websites of two of GMO Payment Gateway’s partners – the Tokyo Metropolitan Government and the Japan Housing Finance Agency.

The losses reflect expenses for implementing various security measures after the incident. According to preliminary estimates, the number of “units of information” leaked through the Tokyo Metropolitan Government website is 676,290, comprising 614,629 email addresses, 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, with this number including credit card numbers, credit card expiration dates, security codes, credit card payment registration dates, addresses, email addresses, names, phone numbers, as well as dates of birth and payment joining dates. The numbers were subsequently revised to avoid doubling of information.

Following the incident, GMO Payment Gateway has published a number of reports to update its customers, partners and investors on the reasons for the leakage and its consequences. The company has formed a special “Recurrence prevention committee” to investigate the case and to help it implement measures to prevent such incidents from happening in the future. GMO Payment Gateway has also complied with a request by the Japanese Ministry of Economy, Trade and Industry (METI) and has submitted a special report into the case with the authorities.

In line with the business ethics in Japan, GMO Payment Gateway’s management has assumed responsibility for the incident, with three of the company’s Board Members to accept salary cuts.

Read this next

Technology

Spotware Systems unveils version 4.4 of Desktop and Web terminals

Spotware Systems, a technology provider for the electronic trading industry, has launched updated versions of its cTrader Desktop and Web terminals, which add new functionality to join a roster of advanced trading capabilities.

Institutional FX

Integral reports best monthly FX volume in 6 months

Currency trading on Integral’s platforms rose in September to its highest levels since March 2022 as increased volatility across financial markets led to greater activity on institutional FX venues.

Retail FX

OctaFX pre-launches new trading platform as MT4 and MT5 remain suspended by Apple

Like many other brokers within the FX and CFD industry, OctaFX had all its eggs in one basket, MetaQuotes, only offering access to MetaTrader 4 and MetaTrader 5. OctaTrader will provide the much needed change.

Opinion

Is the Bank of England facing another storm? Op-Ed by Stuart Cole, macro economist at Equiti Capital

An analysis and opinion editorial by Stuart Cole, macro economist at Equiti Capital, 3 October 2022 on what triggered the UK gilt market sell-off and is the Bank of England facing another storm?

Industry News

Kim Kardashian fined $1 million for touting EMAX tokens on social media

“Investors are entitled to know whether the publicity of a security is unbiased, and Ms. Kardashian failed to disclose this information.”

Retail FX

INFINOX launches IX Exchange platform with +20,000 markets in UK

“The launch of IX Exchange is a statement of intent for our growth strategy and a game-changer for our clients’ trading potential.”

Retail FX

Saxo issues gloomy report for Q4 2022 and beyond

Globalisation was the biggest driver behind low inflation over the past 30 years and instrumental for emerging markets and their equity markets. Globalisation in reverse will cause turmoil for trade surplus countries, put upward pressure on inflation and threaten the USD as the reserve currency.

Executive Moves

ICE appoints Caterina Caramaschi to oversee interest rates and equity derivatives

“As the head of a product set covering some of the biggest interest rate and equity derivative benchmarks, at a time when investor’s priorities are firmly focused on interest rate changes and the outlook for global economies, Caterina’s two decades of financial market experience, and the relationships cultivated during that, will be invaluable in developing these products to the benefit of our customers.”

Retail FX

Plus500 sponsors Chicago Bulls ahead of trading platform launch in United States

Plus500 has signed a major multi-year sponsorship deal to become an official global partner of iconic NBA team Chicago Bulls. 

<