S
Sean Camara
Guest
Ransom negotiations ramp up as Medibank hackers start releasing stolen data on the dark web
In light of the increasing number of cybercrime cases, we here at the SDC are dedicated to keeping you up to date with the most important and impactful cases as they happen.
It is with regret that we have to report a sinister update on the recent cyberattacks on Medibank, Australia's largest health insurer.
A group of hackers hijacked the system of the insurance company, leading to the names and addresses of thousands of its customers (past and present) being compromised.
The cybercriminals stole customer data, which include names, addresses, birthdates, and Medicare details, of almost nine million Medibank members.
Additionally, the hackers started posting the information of hundreds of individuals to the dark web on Wednesday, November 9.
The hackers, who go by the name 'BlogXX' or 'REvil', also threatened to release more data from millions of Australian Medibank customers, including Aussie celebrities, unless the company pays a ransom
'Looking back that data is stored in not very understandable format (table dumps) we'll take some time to sort it out,' the cybercriminals said.
'We'll continue posting data partially, need some time to do it pretty.'
An alleged message from Medibank to the hackers who stole company data. Credit: Daily Mail.
Meanwhile, Medibank allegedly responded to the requests of the cybercriminals as shown in the screenshots made public by the hackers.
The alleged response from the health insurer read: 'Hello. We received your message. We want to talk with you, but need to be sure you're the person who says they have our data.'
'Can you tell us all the addresses and phone numbers you sent messages to?'
The hackers then replied with: 'OK, we wait.'
More screenshots showed that the alleged Medibank account later responded: 'After considering all options, we have made a decision that we cannot pay your demand.'
'It is also Australian government policy that ransoms should not be paid. We understand the impact this may have.'
Pictured is Medibank's alleged reply to the hackers, claiming that they would not pay the ransom. Credit: Daily Mail.
Trevor Long, a tech specialist and editor of EFTM.com, claimed that early on Wednesday morning, a sample of data was made available on the dark web.
He explained: 'The bottom line is the hacker community, the scammer community, have this information now and that's the risk to us - individuals getting asked to pay ransoms to prevent their own information being handed over to friends, family or employers.'
In a prior statement, Medibank acknowledged that when the unidentified group broke into its system a few weeks ago, details from nearly 500,000 health claims as well as personal data, were taken.
The health insurer confirmed that no banking nor credit card information was accessed.
The ransomware hackers announced on Tuesday that the 'data will be publish (sic) in 24 hours'.
'P.S. I recommend to sell (sic) medibank stocks.'
Medibank once more expressed its sincere apologies to all of its clients, cautioning them to be on the lookout for any phone, postal, or email phishing scams.
CEO David Koczkar said on Tuesday: 'We knew the publication of data online by the criminal could be a possibility but the criminals' threat is still a distressing development for our customers.'
He expressed his 'devastation' for the clients, who 'deserve privacy', but warned that if Medibank bowed to the thieves' demands, Australia would become a target for more such attacks.
'This is a significant decision for the business and we've had extensive expert advice and the reality of that advice is that there was a small chance that paying a ransom – you can call it extortion – that it was very unlikely they may return customer data,' he added.
'In fact, you just can't trust a criminal.'
Mr Koczkar said that the company is firm on not paying ransom to the hackers because it is 'consistent with the government policy on paying ransoms'.
Unfortunately, there’s no easy fix to the cyber-war that’s getting worse and worse by the day.
And while it is unfortunate that we, as consumers, cannot do anything about this breach, the only thing we can do is be weary of the threats that may endanger our welfare.
If you are or were a member of Medicare, please be extra cautious with your transactions, especially phone calls and emails from people you're not familiar with.
For more information on how you can protect yourself from cybersecurity threats, we recommend checking out this article.
Stay safe out there, members!
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I'm angry because these companies that want our information need to guarantee our safety.
my prays are with you. I was only hearing on the TV the other day how bad the ticks are this year.
please keep us updated
