We all know that cybercrime is on the rise – but it’s still a huge shock whenever we hear about another big company being hit with a data breach.

The latest victim? Medibank, one of Australia’s largest private health insurers.

According to reports, hackers have taken credit for the company's cyberattack and have threatened to release private client data if their ransom demands are not satisfied.

While authorities have yet to verify the legitimacy of the cyber hacker's messages, the Sydney Morning Herald claimed that the hackers initially sought a $1 million bitcoin ransom but later increased it to $2 million after the payment did not go through

Additionally, the cybercriminals said that they were looking at retrieving data from 'persons of interest' whose information can then be used for scamming other people who weren’t directly impacted by the breach.

The insurance provider has purportedly received a ransom note from the hackers responsible for the Medibank cyberattack. Credit: NCA NewsWire/Paul Jeffers.

They wrote: 'We offer to start negotiations in another case we will start realising our ideas like 1. Selling your Database to third parties 2. But before this we will take 1k most media persons from your database (criteria is: most followers, politicians, actors, bloggers, LGBT activists, drug addictive people, etc) Also we’ve found people with very interesting diagnoses. And we’ll email them their information.'

Medibank said in a statement issued on Wednesday afternoon that it has spoken with a party that 'wishes to negotiate with the company regarding their alleged removal of customer data.'

It stated that the business was currently 'working urgently' to determine the legitimacy and veracity of the threat.

The statement read: 'Based on our ongoing forensic investigation, we are treating the matter seriously at this time.'

Cybersecurity Minister Clare O'Neil issued a warning in light of the escalating risks, predicting that the frequency of cyberattacks would certainly rise and recommending the installation of more systems to safeguard customers.

Speaking on ABC radio on Thursday morning, Ms O'Neil noted that regulatory changes had been made and pointed out that cybercrime was now the 'main crime concern internationally'.

One of Australia's major private health insurers was the target of a cyberattack, and the hackers who claimed responsibility have threatened to sell critical customer information. Credit: news.com.au.

She explained: 'This is the new world that we live in. We are going to be under relentless cyber-attack, essentially from here on in.'

'So I think combined with Optus, this is a huge wake-up call for the country. And certainly gives the government a really clear mandate to do some things that frankly, probably should have been done five years ago, but I think are still very crucially important.'

Ms O'Neil added that she had spoken with Medibank CEO David Koczkar on Wednesday, claiming that the Department of Home Affairs and the Australian Cyber Security Centre of the Australian Signals Directorate had also contributed significantly to resolving the issue.

She said: 'The incident is another reminder for Australian governments, businesses and citizens to be vigilant about their cyber safety.'

Medibank would 'prioritise responding to this situation as transparently as possible,' according to Mr Koczkar.

Additionally, in response to the incident, the health insurer suspended trading of its shares on the ASX until further notice.

The Medibank CEO said: 'Our team has been working around the clock since we first discovered the unusual activity on our systems, and we will not stop doing that now.'

'We will continue to take decisive action to protect Medibank customers, our people and other stakeholders.'

Medibank first reported the 'cyber incident' on October 12, saying that the issue had affected its services. At the time, the business claimed that there was no proof that consumer data had been compromised.

A statement from the private health insurer read: 'At this stage there is no evidence that any sensitive data, including customer data, has been accessed.'

'As part of our response to this incident, Medibank will be isolating and removing access to some customer-facing systems to reduce the likelihood of damage to systems or data loss.'

'As a result, our international student policy management systems have been taken offline. We expect these systems to be offline for most of the day.'

Medibank is the most recent business to experience cyberattacks that compromise critical client data. Other companies and organisations that have recently been targeted by data hacks include Telstra, Optus, the Woolworths Group subsidiary MyDeal.com.au, and online wine retailers Vinomofo, NAB, and Optus.

Key Takeaways

• Medibank has confirmed that it has been targeted by hackers who have threatened to leak sensitive customer data unless a ransom is paid.
• The company is working urgently to establish the validity and authenticity of the threat.
• Minister for Cybersecurity Clare O'Neil has warned that rates of cyber-attacks are likely to increase and that more should be done to protect customers.
• Medibank has halted trading until further notice.

The world is changing and so is the landscape of crime. In the past, criminals would target physical objects like cash, jewellery, and electronics. However, in the digital age, criminals are increasingly targeting our personal data.

It seems like more businesses are becoming targets of cyber criminals to execute their large-scale data breach and identity theft scams. These businesses normally have a lot of financial and personal information on their customers which can be used for criminal activity.

Unfortunately, as customers, we cannot do much about these issues aside from calling on the companies and the government to do better in protecting our information. They need to have better cyber security in place and be more vigilant about possible cyber attacks.

Speaking of which, what are your thoughts on this cyber attack? Did you know about this breach or did you suspect something was going on? Let us know your thoughts in the comments below.

 

[Suzanne rose]

I'm with AHM and they have been attacked .
I used to be with Medicare and have received emails from both of these.

I'm with optus as well.


Suzanne, a cyber incident update
AI
ahm health insurance

To:
@hotmail.com
Fri 21/10/2022 12:39

​ An update on our cyber incident​ Dear Suzanne, Since I last wrote to you there has been a further development relating to our current cyber incident. As we have worked through this, we have committed to being transparent about what we know, and how that could impact our customers, our people, and the broader community. New information to share We were contacted by a criminal claiming to have stolen data. They provided a sample of records for 100 policies which we believe has come from our ahm and international student systems. That data includes first names and surnames, addresses, dates of birth, Medicare numbers, policy numbers, phone numbers and some claims data. This claims data includes the location of where a customer received medical services, and codes relating to their diagnosis and procedures. They claim to have taken other information, including data related to credit card security, however this has not yet been verified by our investigations. What we are doing now Yesterday, we started making direct contact with the affected customers to inform them of this latest development, and to provide support and guidance on what to do next. Our teams are continuing to work around the clock to understand what additional customer data has been affected, and how this will impact them. We expect the number of affected customers to grow as the incident continues. What you can do We urge you to remain vigilant and encourage you to seek independent advice from trusted sources, including the Australian Cyber Security Centre. As always, we will never contact you requesting passwords or other sensitive information. Customer support I understand that this new development will be upsetting and I unreservedly apologise. We are in discussions with government stakeholders about what else we can do to assist our customers in safeguarding their identities and health information. If you wish to speak to someone, you can contact us by phone on 13 42 46 or visit our ahm information page for any updates. If you need any mental health support, you can also speak to Medibank’s qualified mental health professionals 24/7 over the phone on 1800 644 325. Again, I want to apologise and reassure you that our priority remains safeguarding you and your data. Regards,

 

[Liz]

I think, unfortunately, these companies are only the first. We need to get our cyber security updated to try and mitigate these attacks. I hope the Australian regulatory authorities are working hard with the companies. These cyber criminals, if they every find them, should get very harsh penalties.

 

[Macarj]

I was involved with computer people in the 1970s and I asked a lot of questions about safety on line and they used to say to me there will never be a problem because computers will have firewalls built in so can't be breached, it's obvious to me that some businesses don't have good enough firewalls and that includes the government the company I worked for never had a breach, there were many attempts but never got through

 

[terri]

Our lives have become entwined on the internet. Our activities are all watched. And now the lazy cybercrime scum can take advantage of everyone. There is nowhere to hide. When everyone uses the same thing, criminals will pounce. It sucks.

 

[Nana Zorak]

And the powers that be want us to be totally reliant on the electronic world ie cashless cards that contain all your details to make it easier for hackers to scam you. I still like cash although I do my banking online. I just don't believe that we should give up our control over the whole of our lives. After all, we didn't have a choice in choosing the onslaught of social media which is touted as progress but most see as control!