GMO Founder Acknowledges Security Warning Before Cloud Breach

GMO Internet Group founder, chairman and Group CEO Masatoshi Kumagai said Nov. 2 that security specialists had flagged problems with Onamae.com Desktop Cloud before an October breach exposed customer information.

At a Tokyo news conference, Kumagai identified GMO Cybersecurity by Ierae, Inc. as the group security unit that raised concerns in April 2024. He said its findings were not put to use in operating the service.

GMO Internet Group will cut Kumagai’s monthly pay by 30% for three months, starting with compensation issued in December 2026. GMO Internet separately approved three-month pay cuts for three of its executives, also beginning in December.

GMO Internet President Tadashi Ito will take a 25% cut. Executive Vice President Hirofumi Yamashita and Senior Managing Executive Officer Kimihiro Kodama will each take a 20% cut. The group plans to review management responsibility after examining events before the breach.

GMO Internet began suspending Onamae.com Desktop Cloud at 3 p.m. ET Oct. 20 (19:00 UTC; 4 a.m. Oct. 21 in Japan). The service provides servers used to run foreign-exchange trading software.

The breach put 26,739 servers at potential risk, a figure that does not represent confirmed intrusions. GMO Internet later confirmed that customer information had been taken, and some customers reported trades they did not recognize.

GMO Internet pledged ¥5,000 to each customer currently using Onamae.com Desktop Cloud and compensation for verified realized losses from unauthorized trades. It plans to publish the claims procedure by Nov. 6.