Despite threats to leak data, Medibank said 'will not pay a ransom'

November 09, 2022 By Jozeph P

(Image Credit Google)

Medibank, one of Australia's largest health insurers, has stated that it will not pay a ransom to regain access to its data after a recent ransomware attack. The decision was confirmed by the company's CEO, David Koczkar, via LinkedIn, following a somewhat lengthy post on the platform earlier this week in which he apologized to Medibank customers for any issues caused by the attack, but warned that paying the ransom demand could make things worse. "Based on the comprehensive advice we have got from cybercrime experts, we understand that paying a ransom would only have a limited chance of ensuring the return of our customers' data and preventing it from being published," he said. "Paying could motivate the criminal to directly extort our customers, and there is a strong possibility that paying puts more people in danger by making Australia a bigger target."

The opposite effect According to Koczkar, the ransomware attack occurred in late October 2022 and allowed threat actors to access the personal details of approximately 5.1 million Medibank, 2.8 million ahm, and 1.8 million international current and former customers, as well as health claims data for approximately 160,000 Medibank, 300,000 ahm, and 20,000 international customers. "The criminal did not find credit card and banking details or health claims data for extras services," the CEO confirmed. He also warned customers to be cautious, as cybercriminals may now try to use the newly publicly accessible data for secondary attacks. Crooks could approach customers directly and try for using their knowledge to trick them into giving up payment information or something similar. Personal details could also be used in identity theft attacks. Medibank is planning to expand its Cyber Response Support Program to include a cybercrime health and wellbeing line, prompt support for vulnerable customers, and cybercrime-specific preventative health advice and resources. The Australian Government, the Australian Cyber Security Centre, and the Australian Federal Police have all been notified and are looking into the situation.

By Jozeph P

Journalism explorer, tech Enthusiast. Love to read and write.

Despite threats to leak data, Medibank said 'will not pay a ransom'

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