Progress of the Funds Outflow Incident and Measures to Prevent Recurrence
JELLY BEANS GROUP Co.,Ltd.
An unauthorized transfer instruction sent through a spoofing email from a malicious third party. In addition, the Company's internal rules and procedures for payment processing, internal controls over payment approval and disbursement processes, cybersecurity framework, vigilance against spoofing and cyberattacks, and measures addressing vulnerabilities in business chat tools and other systems were inadequate
Amount subject to the incident: ¥45 million. The loss amount may change depending on the progress of the investigation and recovery efforts, and the Company plans to record the loss once the amount is finalized
There is no change to the plan to record the loss promptly once the loss amount is finalized. If the incident affects full-year results, the Company will promptly disclose the impact
Related procedures
Submission and formal acceptance of a damage report; investigation by the police
Tsukishima Police Station
Company response
The Company will continue consulting with external specialists, including lawyers
Strengthening internal controls to ensure compliance with effective payment approval and disbursement processes; as part of a review of the transfer approval process, sharing details of high-value transfers with officers and implementing a final confirmation process by telephone, online or other means; strengthening education and training focused on improving understanding of accounting procedures and emphasizing compliance; improving resources in the accounting department and strengthening the internal audit department; enhancing the security of internal business tools and making two-factor authentication mandatory; enforcing account and access-rights management; strengthening in-house cybersecurity education and training for all officers and employees; strengthening internal audits of security controls
The Company will continue consulting with external specialists and fully cooperate with investigative authorities. It will implement measures to prevent recurrence based on the identified causes and continue strengthening those measures. Once the loss amount is finalized, the Company will promptly record the loss
If the incident affects full-year results, the Company will promptly disclose the impact
| Item | Details |
|---|---|
| Event name | Progress of the Funds Outflow Incident and Measures to Prevent Recurrence |
| Date recognized / date notice received | The Company announced the funds outflow incident on 11 June 2026, and the damage report was formally accepted on 19 June 2026 |
| Subject Entity | JELLY BEANS GROUP Co.,Ltd. |
| Cause | An unauthorized transfer instruction sent through a spoofing email from a malicious third party. In addition, the Company's internal rules and procedures for payment processing, internal controls over payment approval and disbursement processes, cybersecurity framework, vigilance against spoofing and cyberattacks, and measures addressing vulnerabilities in business chat tools and other systems were inadequate |
| Amount of Impact on Business Performance | Amount subject to the incident: ¥45 million. The loss amount may change depending on the progress of the investigation and recovery efforts, and the Company plans to record the loss once the amount is finalized |
| Impact on Earnings Forecast | There is no change to the plan to record the loss promptly once the loss amount is finalized. If the incident affects full-year results, the Company will promptly disclose the impact |
| Type of litigation or proceeding | Submission and formal acceptance of a damage report; investigation by the police |
| Court or authority | Tsukishima Police Station |
| Date of filing / date of action | 19 June 2026 (date the damage report was submitted and formally accepted) |
| Investigation structure | The Company will continue consulting with external specialists, including lawyers |
| Measures to prevent recurrence | Strengthening internal controls to ensure compliance with effective payment approval and disbursement processes; as part of a review of the transfer approval process, sharing details of high-value transfers with officers and implementing a final confirmation process by telephone, online or other means; strengthening education and training focused on improving understanding of accounting procedures and emphasizing compliance; improving resources in the accounting department and strengthening the internal audit department; enhancing the security of internal business tools and making two-factor authentication mandatory; enforcing account and access-rights management; strengthening in-house cybersecurity education and training for all officers and employees; strengthening internal audits of security controls |
| Outlook | The Company will continue consulting with external specialists and fully cooperate with investigative authorities. It will implement measures to prevent recurrence based on the identified causes and continue strengthening those measures. Once the loss amount is finalized, the Company will promptly record the loss |
| Planned follow-up disclosure | If the incident affects full-year results, the Company will promptly disclose the impact |
Items this document does not state (12)
These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.
The reasons the company gives
The company's own explanation, not something inferred from the numbers.The primary cause was an unauthorized transfer instruction sent through spoofing emails by a malicious third party. The Company recognizes that its internal rules, payment approval and disbursement processes, cybersecurity framework, vigilance against spoofing and cyberattacks, and measures addressing vulnerabilities in business chat tools and other systems were inadequate.