Cacco Launches Ad Fraud Countermeasure Service "X-log"

Cacco Inc. (Headquarters: Minato-ku, Tokyo; President & CEO: Hiroyuki Iwai; Securities Code: 4166; hereinafter "Cacco"), provider of the No. 1*1 domestic unauthorized order detection service and a contributor to building safe e-commerce infrastructure, announces that it has acquired the "X-log" web ad fraud prevention business from Japan Cloudia Co., Ltd., and has begun offering the service effective today.

With this service, it is now possible to detect and reduce wasted advertising spend caused by fraudulent clicks (ad fraud) at the ad traffic stage. Combined with our existing "O-PLUX" service, we have established a system to provide seamless fraud countermeasures for online businesses, from ad acquisition to login and payment.

*1: Tokyo Shoko Research, Ltd., "Survey on the Number of Sites Implementing Paid Fraud Detection Services for E-commerce Sites in Japan," as of the end of March 2025.

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Background: Approximately 1 in 2 E-commerce Operators Feel the "Waste of Advertising Costs" Domestic internet advertising spending reached a record high of 3.4741 trillion yen*2 in 2024, making it a vital means for companies to attract customers. Meanwhile, "ad fraud," where advertising budgets are siphoned off through fraudulent clicks by bots or competitors, has become a serious issue.

In our proprietary survey (internet research targeting 553 individuals responsible for fraud countermeasures at e-commerce companies), 48.3% of respondents stated they have "felt the waste of advertising costs," highlighting it as a pressing issue in the field.

Furthermore, research results (IAS "Media Quality Report") indicate that Japan has one of the highest ad fraud rates among major countries. With the Ministry of Internal Affairs and Communications' "Guidance for Advertisers on Appropriate and Effective Delivery of Digital Advertising"*3 published in June 2025, and the certification system by JICDAQ (Japan Internet Advertising Quality Organization), the institutionalization of countermeasures is progressing rapidly. Cacco has previously focused on fraud detection in e-commerce and finance (unauthorized logins, unauthorized remittances, and unauthorized orders/payments). By adding "X-log," which addresses the entry point of customer acquisition, to our lineup, we aim to provide a "comprehensive fraud prevention solution" that supports both the maximization of advertising effectiveness and the subsequent prevention of payment-related damages.

*2: Dentsu Group, "Global Ad Spend Growth Forecast (2024-2027)" (December 3, 2024) *3: Ministry of Internal Affairs and Communications, "Guidance for Advertisers on Appropriate and Effective Delivery of Digital Advertising" (June 9, 2025)

Features of the Ad Fraud Countermeasure Service "X-log" "X-log" is an ad fraud prevention tool compatible with both Google and Yahoo! JAPAN advertising platforms, which account for over 90% of the domestic search advertising market.

1. High-Precision Automatic Blocking Function: Proprietary algorithms, including AI, analyze access to automatically identify fraudulent IP addresses, devices, and ineffective delivery destinations. By automatically registering these as exclusions on the advertising media side, it prevents the occurrence of wasted advertising costs in real-time.

2. Almost Zero Operational Burden: Everything from grasping the current situation to implementing countermeasures is automated, requiring no operational effort after implementation. If you wish to check the status, you can monitor the effectiveness of countermeasures and predicted figures in real-time via a dedicated dashboard.

3. Can Be Used as Evidence for Investigation Requests to Media: Detailed analysis data can be downloaded, and clicks suspected of being fraudulent can be organized by condition. By using this as evidence for investigation requests submitted to media platforms, you can take concrete actions toward optimizing your advertising budget, such as applying for refunds when clicks are recognized as invalid.

4. Overwhelming Cost Performance: In addition to plans starting from several tens of thousands of yen per month, a free plan is also available. This meets the needs of a wide range of companies, from small and medium-sized enterprises to large corporations, for whom implementing countermeasures was previously difficult due to cost.

Future Outlook: Strengthening Functions and Maximizing Synergy Moving forward, we will work to further enhance the detection engine of "X-log" by leveraging the fraud detection expertise held by our company.

In particular, D2C operators are often troubled by both advertising fraud and unauthorized reselling. By offering our "O-PLUX" and "X-log" as a set, we will provide unique value that protects everything from ad operations to inventory management.

Under our management philosophy of "Giving shape to the 'Let's try it first' of future game changers," we will continue to contribute to the development of a healthy digital society as a leading company in fraud prevention.

[Service Details and Inquiries] We are currently accepting adjustments for service pricing and detailed specifications to suit your situation. Please feel free to contact us via the URL below. URL: https://frauddetection.cacco.co.jp/contact/

About Cacco Inc. Cacco aims to support companies in solving problems and taking on challenges by utilizing data science with AI and proprietary algorithms, under the management vision of "Giving shape to the 'Let's try it first' of future game changers." Positioning "fraud detection services" for online transactions as our core business, we provide "O-PLUX," the No. 1 domestic fraud detection service capable of handling everything from unauthorized logins to unauthorized remittances and payments for e-commerce sites and financial institutions, as well as phishing countermeasure services.

In our data science services, we contribute to cost reduction, operational efficiency, and profit improvement through data utilization and analysis across various industries, including manufacturing, apparel, and construction.

* Company names, product names, and service names (including logos) mentioned are trademarks or registered trademarks of their respective owners. * The impact of this matter on the financial results for the fiscal year ending December 2026 is currently under review, and we will promptly announce any information that needs to be disclosed. * Given that this service release enables us to provide an ad fraud prevention solution independently, we have decided to terminate our business alliance with Value Creation, Inc. There is no impact on the financial results for the fiscal year ending December 2026 due to the termination of this alliance, as there have been no specific business transactions.