Formulation of measures to prevent recurrence
Hatena Co.,Ltd. (the filing company)
Company-wide fund transfer and payment processes, accounting operations, information security, and internal audit and governance frameworks
An incident involving an outflow of funds resulting from fraudulent payment instructions. The reason for formulating measures to prevent recurrence was the recommendations in the investigation report of the Special Investigation Committee.
Company response
References the investigation report of the Special Investigation Committee. The name of the committee chair and the date of establishment: not disclosed
(1) Strengthening internal controls over fund transfer and payment processes: clarifying fund transfer rules; introducing prior, multi-stage approval through workflows and verification of supporting documentation; reviewing user authorities; separating payment application authority from approval authority; restricting the environment in which approval operations may be performed; setting the maximum payment amount at the minimum necessary level; and using automatic notification functions. (2) Improving the visibility of accounting operations and establishing appropriate segregation of duties: reviewing key accounting operations; preparing operating manuals; clarifying management and control functions and operational functions; and restructuring the organizational framework. (3) Strengthening information security management and education for officers and employees: restricting the use of remote desktop tools; establishing an advanced security environment for terminals used to handle funds; thoroughly communicating and inspecting password management rules; and providing ongoing training on special fraud techniques and reporting procedures when suspicious incidents occur. (4) Strengthening the internal audit and governance frameworks: strengthening the framework through measures including establishing a dedicated internal audit structure and using external experts; increasing the Audit & Supervisory Board's risk awareness; and enhancing cooperation with the internal audit department and the accounting auditor. (5) Establishing continuous monitoring and reporting frameworks: building a system for the Board of Directors and the Compliance and Risk Committee to continuously monitor the establishment and operation of measures to prevent recurrence
The disclosure states that management takes its responsibility for this incident seriously. Compensation reductions, resignations and disciplinary action: not disclosed
The Company will implement the measures to prevent recurrence, establish and operate an appropriate funds management framework, further strengthen governance, and work to restore trust and sustainably enhance corporate value.
| Item | Details |
|---|---|
| Event name | Formulation of measures to prevent recurrence |
| Date of occurrence | 31 July 2026 (date of the Board of Directors' resolution) |
| Subject Entity | Hatena Co.,Ltd. (the filing company) |
| Target Locations / Products | Company-wide fund transfer and payment processes, accounting operations, information security, and internal audit and governance frameworks |
| Cause | An incident involving an outflow of funds resulting from fraudulent payment instructions. The reason for formulating measures to prevent recurrence was the recommendations in the investigation report of the Special Investigation Committee. |
| Investigation structure | References the investigation report of the Special Investigation Committee. The name of the committee chair and the date of establishment: not disclosed |
| Measures to prevent recurrence | (1) Strengthening internal controls over fund transfer and payment processes: clarifying fund transfer rules; introducing prior, multi-stage approval through workflows and verification of supporting documentation; reviewing user authorities; separating payment application authority from approval authority; restricting the environment in which approval operations may be performed; setting the maximum payment amount at the minimum necessary level; and using automatic notification functions. (2) Improving the visibility of accounting operations and establishing appropriate segregation of duties: reviewing key accounting operations; preparing operating manuals; clarifying management and control functions and operational functions; and restructuring the organizational framework. (3) Strengthening information security management and education for officers and employees: restricting the use of remote desktop tools; establishing an advanced security environment for terminals used to handle funds; thoroughly communicating and inspecting password management rules; and providing ongoing training on special fraud techniques and reporting procedures when suspicious incidents occur. (4) Strengthening the internal audit and governance frameworks: strengthening the framework through measures including establishing a dedicated internal audit structure and using external experts; increasing the Audit & Supervisory Board's risk awareness; and enhancing cooperation with the internal audit department and the accounting auditor. (5) Establishing continuous monitoring and reporting frameworks: building a system for the Board of Directors and the Compliance and Risk Committee to continuously monitor the establishment and operation of measures to prevent recurrence |
| Directors' and officers' liability | The disclosure states that management takes its responsibility for this incident seriously. Compensation reductions, resignations and disciplinary action: not disclosed |
| Outlook | The Company will implement the measures to prevent recurrence, establish and operate an appropriate funds management framework, further strengthen governance, and work to restore trust and sustainably enhance corporate value. |
Items this document does not state (16)
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 resolution was made in response to the recommendations in the investigation report of the Special Investigation Committee concerning the incident involving an outflow of funds resulting from fraudulent payment instructions, which was announced on 24 April 2026.