Japan’s Daiichi Kosho says contractor malware may have exposed 8.7 million records
Daiichi Kosho says a malware infection at a contractor may have exposed data on 8.7 million customers and employees.
The company said it received a report from Nippon Columbia Group, to which it outsources the handling of personal information, that a device used by an NCG employee was infected with malware and that customer information may have been leaked. Daiichi Kosho said it had not confirmed that personal information was actually leaked externally or misused, and that its own systems were not affected. The notification was reported by TechRadar.
According to BleepingComputer, Nippon Columbia Group notified Daiichi Kosho of the malware infection on Oct. 5, 2026, and isolated the affected systems the following day. The exact cause and type of infection were not disclosed. The company suspects records on 93,000 employees and 8,631,000 customers may have been exposed.
The potentially exposed data includes full names, genders, dates of birth, email addresses and telephone numbers. Customers of BIG ECHO, MEGA BIG, Karaoke CLUB DAM, Banana Club, B-GARAGE and DK Dining are among those affected, according to the notice. Passwords, loyalty points and payment data were not disclosed, and there was no evidence of the data being misused on the dark web, the notice said.
Daiichi Kosho warned employees and customers to be wary of incoming email messages, especially unsolicited ones claiming to come from the company itself. Personally identifiable information holds value on the black market because attackers can use it to launch tailored phishing campaigns, steal login credentials, deploy infostealers and move into corporate IT infrastructure.
Nippon Columbia Group was formed in 2025 after a restructuring of Faith. Its roots date back to 1910, when its predecessor became Japan’s first record company. Today, Faith established Nippon Columbia Group as a new organization focused on AI-powered entertainment and content distribution. Daiichi Kosho was founded in 1973 and is known for its DAM karaoke systems and Big Echo karaoke venues. It operates more than 400 karaoke venues across Japan, including over 100 in Tokyo, and also sells and rents karaoke equipment, runs restaurants, and produces music and videos. The company generates roughly ¥163 billion, or around $1.06 billion, in annual revenue.
Daiichi Kosho said it will continue to monitor the situation and take necessary measures if it detects any signs of unauthorized use. It said it was inspecting other systems and examining how it manages its contractors to see if there is room for improvement. If further investigation reveals new facts, the company said it will promptly provide an update, including the customers affected and the measures to be taken.
Editor's Summary
Daiichi Kosho disclosed that a malware infection at contractor Nippon Columbia Group may have exposed records on 8.7 million customers and employees. The incident is a supply-chain breach, with no confirmed external leak or misuse and no payment data involved. The company is reviewing contractor security and monitoring for unauthorized use.