Park24 Revises Forecasts After ¥5.5B Data Breach Loss

Park24 announced a ¥5.5 billion special loss due to a recent data breach affecting its car-sharing service, ‘TimesCar’, and consequently revised its full-year net profit forecast downwards by 12.5%. The breach, initially disclosed in late September, involved unauthorized access to a web system and the potential leakage of personal information.

A forensic investigation revealed that vulnerabilities in the system were exploited, leading to the access and external transmission of data related to approximately 6.63 million customers. This included names, addresses, dates of birth, phone numbers, email addresses, and driver's license information. Additionally, encrypted images of identification documents for roughly 2.36 million customers were accessed, though the company states the images themselves were not immediately readable. A smaller number of records related to corporate members and credit card information (last four digits only, as Park24 does not store full card details) were also affected.

The company is offering compensation of ¥3,000 to customers whose encrypted identification data may have been compromised. Park24 is also revising its internal rules regarding the retention of identification document images, moving to a policy of immediate deletion upon registration completion. This represents a significant shift in data handling practices prompted by the incident.

The ¥5.5 billion loss encompasses costs associated with the breach response, including forensic investigation, customer notifications, and compensation. As a result, the company lowered its full-year consolidated net profit forecast. While revenue and operating profit remain unchanged from previous guidance, net profit is now expected to be lower. The company maintains its previously announced annual dividend forecast of ¥65 per share.

The data breach and associated costs have prompted a downward revision of Park24’s profitability outlook. The incident underscores the increasing risks associated with data security in the mobility services sector, and the financial impact highlights the potential costs of mitigating such breaches.