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Park24 Announces ¥3,000 Compensation for Users Affected by Times CAR Data Breach

By Drooid · · How we work

Core Event

On October 23, Park24 Co. disclosed that it will offer a ¥3,000 cash or gift-card payment to users of its Times CAR vehicle-sharing service whose identification-document images were confirmed to have been externally transmitted during an unauthorized access incident. The breach involved approximately 6.62 million user accounts, of which about 1.46 million are eligible for compensation because encrypted images of driver’s licences and other IDs were traced leaving the system.

Background & Context

The intrusion was first detected on September 25, when Park24 observed unusual activity on the Times CAR web platform. The company isolated the affected system and blocked the intrusion routes. Subsequent investigation identified 1,464,800 instances of external transmission of encrypted identification images; an additional 891,602 accounts showed access traces without confirmed transmission. Park24 noted that, although the images were encrypted and not immediately readable, the possibility of later decryption could not be ruled out, prompting the compensation decision.

Official Statements & Responses

Park24 stated that the encrypted images were not viewable at the time of the breach and that it has no knowledge of the leaked data being sold or published. The firm also announced an extraordinary loss of ¥5.5 billion for the fiscal year ending in October, which includes the ¥4.4 billion cost of the compensation program and other breach-related expenses. Yuki Makino of Makino Law Office, which is organizing a class-action lawsuit, called the ¥3,000 payment “too low” given the risk of identity theft and the burden on affected users. Makino reported that more than 90,000 individuals have registered online to join the planned legal action.

Data & Statistics

  • Total compromised accounts: ~6.62 million
  • Eligible for compensation: ~1.46 million (1,464,800 confirmed external transmissions)
  • Compensation amount per eligible user: ¥3,000 (cash or gift card)
  • Expected total compensation cost: ¥4.4 billion
  • Anticipated extraordinary loss for the year: ¥5.5 billion

What’s Next

Park24 will delete all currently stored identification images by the end of October, except for those needed to verify identity for future inquiries. Makino Law Office intends to file the damages lawsuit against the Times CAR operator and related parties in the coming weeks, with the registered participants poised to seek further redress.