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

Medibank has refused to pay a ransom to the cybercriminals who stole the private information of 9.7million current and former customers last month. 

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

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

‘Based on the extensive advice we have received from cybercrime experts we believe there is only a limited chance paying a ransom would ensure the return of our customers’ data and prevent it from being published,’ he said on Monday. 

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

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

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

‘In fact, paying could have the opposite effect and encourage the criminal to directly extort our customers, and there is a strong chance that paying puts more people in harm’s way by making Australia a bigger target,’ he said. 

‘It is for these reasons we have decided we will not pay a ransom for this event.’

Pictured: Medibank CEO David Koczkar

The health insurer said the number of customers who have had their private health insurance information accessed was less than 500,000. 

This number includes 160,000 Medibank customers, 300,000 customers from the ahm brand and about 20,000 international customers. 

These details include service provider name and location, diagnosis and procedure codes and where customers have received specific medical procedures. 

Of the 9.7million customers who have had their personal information accessed, this breaks down to 5.1million Medibank customers, 2.8million ahm customers and 1.8million international customers.

Australia’s biggest health insurer has reiterated that business operations remain normal and that no credit card details have been accessed. 

Cybersecurity Minister Clare O’Neil has said the federal government is against companies paying cybercrime payments but that it is not illegal. 

‘The formal advice of the Australian Government is don’t pay ransoms,’ she said. 

‘These people are hard criminals and they are dishonest. They’ll tell you all sorts of things about what will happen in the aftermath of paying a ransom and by nature these people are liars and we suggest not co-operating with them.

The cyberattack follows a similar attack on telecommunication company Optus where the personal details of up to 10 million were exposed. 

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

More to come.