Medibank cyber attack: Health insurer refuses to pay hackers ransom money

Medibank has refused to pay ransom to the cyber criminals who last month stole the private data of 9.7 million current and former customers.

The health insurer on Monday revealed details of nearly 10 million customers consulted in the major data breach, including information such as names, date of birth, phone number and email addresses.

David Koczkar, CEO of Medibank, said after speaking with cybercrime experts that the company had decided not to pay ransom to the criminals responsible.

“Based on the extensive advice we’ve received from cybercrime experts, we believe there is only a limited chance that paying a ransom will result in our customers’ data being returned and not published.” he said Monday.

Medibank has refused to pay ransom to the mysterious hackers who last month stole the private data of 9.7 million of their customers (pictured, a Medibank in Sydney)

The health insurer revealed details of nearly 10 million customers had been consulted in the major data breach last month, including information such as names, date of birth, phone number and email addresses (pictured, a Medibank in Canberra)

Koczkar said paying the cybercriminals a ransom would encourage them to contact customers and extort them directly.

“In fact, paying can have the opposite effect and lead the criminal to directly extort our customers, and there is a high probability that paying will endanger more people by making Australia a bigger target,” he said.

Pictured: Medibank CEO David Koczkar

“For these reasons, we have decided not to pay a ransom for this event.”

Medibank said the number of customers who gained access to their basic customer information was 9.7 million, while the number of people who gained access to their personal health information was less than 500,000.

This concerns 160,000 Medibank customers, 300,000 customers of the ahm brand and about 20,000 international customers.

Personal data includes the name and location of the service provider, diagnosis and procedure codes, and the locations where Medibank customers have undergone specific medical procedures.

Of the 9.7 million customers whose personal data has been breached, these are 5.1 million Medibank customers, 2.8 million AHM customers and 1.8 million international customers.

Last month, the Medibank cybercriminals threatened to release 200GB of confidential data as well as the private data of the companies 1,000 most famous customers

Australia’s largest health insurer has reiterated that business will continue as normal and no credit card details have been accessed.

Last month, the cybercriminals threatened to release 200GB of confidential data, as well as the private data of the company’s 1,000 most well-known customers.

Koczkar has apologized “without reservation” for the breach and said Medibank would work closely with the Australian Federal Police while the investigation continues.

“This is a malicious attack perpetrated by criminals with the aim of inflicting maximum fear and damage, especially on the most vulnerable members of our community,” he said last month.

The data breach at Medibank follows a similar attack on telecommunications company Optus that exposed the personal data of up to 10 million (stock image)

Cybersecurity Secretary Clare O’Neil has said the federal government is against companies that make payments for cybercrime, but admitted it is not illegal.

“The formal advice of the Australian government is not to pay a ransom,” she said.

“These people are tough criminals and they are dishonest. They will tell you all about what will happen after paying the ransom and these people are liars by nature and we advise you not to work with them.”

The data breach at Medibank follows a similar attack on telecommunications company Optus in which the personal data of up to 10 million was exposed.

Telstra also revealed a data breach last month in which 30,000 current and former employees posted their names and emails online.