The operator of Seven-Eleven’s new smartphone payment service is under fire for appearing clueless at a news conference that was held after customers were allegedly defrauded through unauthorized access.

On July 4, Seven & I Holdings Co. said some 900 convenience store customers using the payment service 7pay may have lost a total of ¥55 million after their accounts were hacked.

The issue was picked up by media outlets, prompting Seven Pay Co. President Tsuyoshi Kobayashi to appear before reporters and issue an apology for the security breach.