Unauthorized access to a system provided by the Company
TRADE WORKS Co.,Ltd
Internet trading system provided to Iwai Cosmo Securities Co., Ltd.
Configuration deficiencies in certain system administration functions left functions that should have been available only from restricted environments accessible externally.
Expected loss of approximately ¥50 million, expected to be recorded as an extraordinary loss in the fourth quarter of the fiscal year ending December 2026
Fourth quarter of the fiscal year ending December 2026
No revision has been made to the full-year consolidated earnings forecast at this time. The Company is assessing the matter, including response costs and the scope of coverage under its cyber insurance.
Company response
Continuing to inspect the entire system and strengthen security measures while drawing on the expertise of third-party organisations
Permanent remediation to prevent external access to the function; restrictions on connection sources; strengthened detection and blocking of unauthorized access; expansion of the monitoring framework; inspection of the entire system and strengthening of security measures; review of security-related reporting standards and information-sharing mechanisms
Related procedures
Relevant authorities (specific names are Not disclosed)
The Company will continue addressing the matter in cooperation with Iwai Cosmo Securities and the relevant authorities. It will promptly disclose the matter if the amount of damage is finalized or if any other matters requiring disclosure arise.
Promptly disclose the matter once the amount of damage is finalized or if any other matters requiring disclosure arise.
| Item | Details |
|---|---|
| Event name | Unauthorized access to a system provided by the Company |
| Date of occurrence | 14 October 2026 (the date on which the Company detected unauthorized access) |
| Date recognized / date notice received | 14 October 2026 (the date on which the Company detected unauthorized access) |
| Subject Entity | TRADE WORKS Co.,Ltd |
| Target Locations / Products | Internet trading system provided to Iwai Cosmo Securities Co., Ltd. |
| Cause | Configuration deficiencies in certain system administration functions left functions that should have been available only from restricted environments accessible externally. |
| Amount of Impact on Business Performance | Expected loss of approximately ¥50 million, expected to be recorded as an extraordinary loss in the fourth quarter of the fiscal year ending December 2026 |
| Accounting period in which recognized | Fourth quarter of the fiscal year ending December 2026 |
| Impact on Earnings Forecast | No revision has been made to the full-year consolidated earnings forecast at this time. The Company is assessing the matter, including response costs and the scope of coverage under its cyber insurance. |
| Court or authority | Relevant authorities (specific names are Not disclosed) |
| Investigation structure | Continuing to inspect the entire system and strengthen security measures while drawing on the expertise of third-party organisations |
| Measures to prevent recurrence | Permanent remediation to prevent external access to the function; restrictions on connection sources; strengthened detection and blocking of unauthorized access; expansion of the monitoring framework; inspection of the entire system and strengthening of security measures; review of security-related reporting standards and information-sharing mechanisms |
| Outlook | The Company will continue addressing the matter in cooperation with Iwai Cosmo Securities and the relevant authorities. It will promptly disclose the matter if the amount of damage is finalized or if any other matters requiring disclosure arise. |
| Planned follow-up disclosure | Promptly disclose the matter once the amount of damage is finalized or if any other matters requiring disclosure arise. |
Items this document does not state (11)
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.Because configuration deficiencies in certain system administration functions left functions that should have been available only from restricted environments accessible externally.