GMO Internet Group's handling of an unauthorized access incident is drawing sharp criticism, with an expert saying the company's response has sown confusion and pointing to a failure of corporate governance.
At a news conference on Nov. 2, President Masatoshi Kumagai said a vulnerability flagged by a security company in the group "had not come up to me," acknowledging a breakdown in information sharing.
Kumagai drew criticism for how he communicated during the incident, including posting his own speculation about who was responsible and a smiling photo on social media. Masakatsu Morii, an emeritus professor at Kobe University's graduate school who studies information and communication engineering, said the president had made himself the lead actor in a theatrical cyberattack.
“The president himself became the star, stepped onto the same stage as the perpetrator, and those around him are in confusion.”Masakatsu Morii, emeritus professor, Kobe University
Kumagai apologized at the start of the news conference. Partway through, in what was billed as a second part, he wept while saying he had never used the words "moukaru, moukeru" — to profit — and spoke about his philosophy and his own views on cybersecurity.
Victim response questioned
Morii said GMO should have prioritized explaining how it was identifying leaked personal information and monitoring for misuse over guidance on condolence payments. The company offered a bounty for information leading to the perpetrator's identification, which Morii said was misplaced.
“Hunting down the perpetrator is not something a single company should be doing.”Masakatsu Morii, emeritus professor, Kobe University
GMO Internet Group shares closed at 3,217 yen on the Tokyo Stock Exchange on Monday, Nov. 2, down 0.95% from the previous trading day. The stock has fallen about 20% since Oct. 21, when reports of fraudulent transactions began to pile up.
GMO said it will disclose the impact on earnings "without delay once the appropriate figure can be estimated with greater precision." The full scope of the damage and how far losses will grow remain unclear.