giftee Group expects an extraordinary loss of approximately JPY 550 million after unauthorized access to part of its subsidiary’s systems led to new e-gifts being issued fraudulently. Its October 26 disclosure said the affected system had been stopped and would not restart. [S1]
The group said the financial loss would fall on its business. An October 27 customer update said gifts already received remained usable, with no misuse or reduction of those balances confirmed. [S1][S2]
Issuance controls within a larger gift operation
giftee standalone quarterly circulation before the incident
Historical operating-scale context for the gift-platform operator, separate from the October incident.
JPY million
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Source
Issuer-reported quarterly circulation, Q2 2025 and Q2 2026, in JPY million. The standalone platform includes corporate and municipal e-gift activities and local-currency services; subsidiary totals are excluded. Published August 14, 2026, before the incident. The presentation does not disclose a precise circulation calculation, recognition timing, cancellation treatment, tax basis or gross/net methodology. This is not revenue, exact issuance or redemption value, customer balances, affected gift value, incident losses or a security-performance measure. No ratio to the later JPY 550 million loss estimate is calculated, and circulation growth is not claimed to have caused the incident.
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| Category | Reported standalone circulation |
|---|---|
| Q2 2025 | 24,461 JPY million |
| Q2 2026 | 37,920 JPY million |
Earlier results put the operator’s gift-platform scale in context. giftee reported standalone quarterly circulation of JPY 37,920 million in Q2 2026, against JPY 24,461 million a year earlier, attributing growth to municipal cost-of-living support projects and corporate demand. The series covers broader e-gift and local-currency activities and excludes subsidiaries. It is the issuer’s monetary operating measure, with no precise calculation method disclosed; it does not measure the affected system or fraudulent value. [S3]
The group said a third party exploited a vulnerability to create new gifts, rather than spend value from customers’ existing gifts. It identified and blocked the route and stopped the affected system on October 25. That distinction separates authorization to create redeemable value from protection of value already held. Some gift exchanges were temporarily disrupted and were being restored, while other major services operated normally, the company said. No personal-information leak had been confirmed. [S1][S2]
The approximate JPY 550 million estimate is expected to be recorded as an extraordinary loss in Q4 of the financial year ending December 2026. The group said it did not then expect a material effect on revenue or operating profit. These are management estimates, rather than finalized financial results, and the earlier circulation figures cannot be used as an attack-loss denominator. [S1][S3]
The notices and Japanese specialist reports from INTERNET Watch and Security NEXT do not identify the affected gift brands, gift count, exploited software, final loss or recovery amount. giftee said it would strengthen issuance management and monitoring and pursue necessary police consultations and reporting. Those measures leave the industry question focused on the controls governing newly issued value, while the full financial and operational scope remains unresolved. [S1][S4][S5]
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Daniel Brooks
Daniel Brooks covers payment networks, financial technology, payment security, gift card fraud and PCI DSS for Gift Card News.