5 Forex Firms Report Customer Damage after GMO Server Breach

Tokyo, Oct. 27 (Jiji Press)--Japanese financial services minister Satsuki Katayama said Tuesday that five foreign exchange margin trading service firms have reported damage incurred by customers apparently due to unauthorized access that recently hit GMO Internet Inc.'s servers leased for the services.

Fraudulent transactions are believed to have been carried out after the unauthorized access led to a leak of trading account login information stored in the servers.

Noting that the five firms, all based in Tokyo, have already taken measures such as suspending part of transactions for affected customers and blocking fraudulent trading orders, Katayama told a press conference that there have been no reports of new bogus transactions.

The five firms are Goldenway Japan Co., Oanda Japan Inc., Ava Trade Japan K.K., Gaitame Finest Co. and Dukascopy Japan K.K.

Following the unauthorized access incident, the Financial Services Agency has urged foreign exchange margin trading service companies across Japan, through the Financial Futures Association of Japan, to take stronger measures, including requesting customers to change their passwords and enhancing transaction monitoring.

[Copyright The Jiji Press, Ltd.]