From source code vulnerabilities to billion-yen crises: A series of Japanese businesses compensate users following cyber incidents
The global cyberspace is experiencing unprecedentedly tense times. Dry technical error warnings have rapidly transformed into massive losses on financial statements. As core technology platforms reveal their weaknesses, the consequences have become clearly apparent through a wave of Japanese businesses compensating customers, posing a life-or-death information security challenge for every organization in the digital era.
The root cause from software vulnerabilities and the fragility of millions of websites
The storm of network disruptions targeting numerous services across Japan and Europe recently did not appear out of nowhere. It all stems from a fatal weakness in PHP – the programming language that serves as the foundation for up to 69.3% of websites worldwide.
Security teams have issued a red alert regarding a remote code execution (RCE) vulnerability with a maximum risk severity score of 10/10. Simply put, malicious actors do not need to steal administrative accounts or passwords. They only need to exploit this loophole to send remote commands and gain full control over the server.
The situation became even more uncontrollable when an exploit tool named "PHP2Shell" was leaked online. The real danger lies in system delays. Data shows that up to 27% of websites still run on PHP 7 and approximately 7.7% use the PHP 5 platform – which has long been "retired" and no longer receives security updates. These outdated websites inadvertently throw the doors wide open for hackers to infiltrate.
Severe consequences: Japanese businesses compensate users with massive amounts of money
From vulnerabilities in the virtual space, heavy blows have struck the real world. The fact that numerous Japanese businesses are paying out massive compensation is the clearest evidence of the price to pay when security perimeters are breached.
A prime example is the financial conglomerate GMO Internet Group. They not only had to fully refund customers whose foreign exchange trading accounts were illegally accessed, but also paid an additional 5,000 yen (equivalent to 32 USD) per user as a goodwill compensation. Faced with extortion pressure and threats of internal data leaks from hackers, GMO chose to report to the police instead of yielding.
Similarly, Park24 – the operator of the Times car-sharing service – also fell into a crisis. Following a personal data leak last month, the company reluctantly paid 3,000 yen to each affected victim. It is estimated that this incident generated an extraordinary loss of up to 5.5 billion yen for the company. To protect itself in the future, Park24 announced it will cease storing images of customers' identification documents after completing the verification process.
Artificial intelligence becomes an expansion tool for cybercriminals
The rapid spread of current attacks is greatly facilitated by Artificial Intelligence (AI). If in the past, hackers had to spend days blindly searching for servers with unpatched PHP vulnerabilities, AI has now automated this entire scanning process at speeds measured in seconds.
Not stopping at finding vulnerabilities, AI is also used to draft highly sophisticated phishing email campaigns, deceiving internal personnel to steal access privileges. Faced with this unpredictable evolution, the Japanese government had to urgently establish a task force, utilizing AI itself to masquerade as hackers and continuously launch simulated attacks to proactively detect system vulnerabilities before malicious actors can strike.
Building a proactive shield with the IPSIP Vietnam ecosystem
The harsh reality demonstrates that risks always lurk in the corners businesses least expect – it could be an outdated piece of source code or a slow-to-upgrade system. To avoid repeating the mistakes of foreign companies, establishing a proactive cybersecurity defense strategy is mandatory.
With profound expertise, IPSIP Vietnam offers a comprehensive solution ecosystem that helps businesses stop threats in their tracks:
Identifying risks at the root: Vulnerability Assessment and PENTEST services will illuminate the entire system. This process helps detect vulnerable platforms (such as PHP 5, PHP 7) early on, allowing for timely upgrades before hackers set their sights on them.
24/7 real-time protection: The integration of a Firewall and a Security Operations Center (SOC) operating continuously will create a robust filter. Any automated scanning behaviors by AI or abnormal traffic flows carrying the seeds of malware will be analyzed and neutralized right at the outer perimeter.
The delay in applying security updates can cost both customer trust and billions of dong in profits. Proactively reviewing vulnerabilities and partnering with specialized entities like IPSIP Vietnam is the smartest investment for organizations to protect their survival in cyberspace.
Reference: Reuters - Japanese companies compensate users as cyberattacks buffet economy
