AP

Australian health insurer says data of all customers hacked

Oct 25, 2022, 7:40 PM | Updated: Oct 26, 2022, 2:56 pm

People walk past a Medibank branch in Sydney, Wednesday, Oct. 26, 2022. Medibank, Australia's large...

People walk past a Medibank branch in Sydney, Wednesday, Oct. 26, 2022. Medibank, Australia's largest health insurer, said a cybercriminal had hacked the personal data of all its 4 million customers as the government introduced legislation that would increase penalties for companies that fail to protect clients' private information. (AP Photo/Rick Rycroft)

(AP Photo/Rick Rycroft)

CANBERRA, Australia (AP) — Australia’s largest health insurer said on Wednesday a cybercriminal had hacked the personal data of all its 4 million customers, as the government introduced legislation that would increase penalties for companies that fail to protect clients’ private information.

Medibank said “significant amounts of health claims data” had also been accessed in the breach, which was reported to police a week ago when trade in the company’s shares was halted.

The thief has demanded ransom and has reportedly threatened to expose the diagnoses and treatments of high-profile customers.

Medibank said its priority was to discover the specific data stolen in relation to each customer and to share that information with those customers.

The company had previously said the breach was thought to be limited to its subsidiary AHM and foreign students.

“Our investigation has now established that this criminal has accessed all our private health insurance customers’ personal data and significant amounts of their health claims data,” Medibank chief executive David Koczkar said in a statement to the Australian Securities Exchange.

“This is a terrible crime – this is a crime designed to cause maximum harm to the most vulnerable members of our community,” Koczkar added, with an apology to customers.

The government has been planning urgent legislative reforms on cybersecurity regulation since a hacker stole the personal data of almost 10 million current and former customers of Optus, Australia’s second-largest wireless telecommunications carrier.

Optus became aware on Sept. 21 that personal data of more than one-third of Australia’s population of 26 million had been stolen.

In introducing amendments to the Privacy Act to Parliament on Wednesday, Attorney-General Mark Dreyfus mentioned both companies and MyDeal, an online retail intermediary that lost the data of 2.2 million customers in a hack revealed two weeks ago.

“As the Optus, Medibank and MyDeal cyberattacks have recently highlighted, data breaches have the potential to cause serious financial and emotional harm to Australians, and this is unacceptable,” Dreyfus told Parliament.

“Governments, businesses and other organizations have an obligation to protect Australians’ personal data, not to treat it as a commercial asset,” Dreyfus added.

The government is critical of companies that amass more customer data than necessary to make money from it in ways unrelated to the services for which the information was provided.

The penalties for serious breaches of the Privacy Act would increase from 2.2 million Australian dollars ($1.4 million) now to AU$50 million ($32 million) under the proposed amendments.

A company could also be fined the value of 30% of its revenues over a defined period if that amount exceeded AU$50 million ($32 million).

Medibank said on Wednesday it did not have cyber insurance and estimated the hack would reduce its earnings by between AU$25 million ($16 million) and AU$35 million ($22 million) by early next year.

The Medicare trading halt was lifted on Wednesday and shares slid more than 14% in early trading.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

AP

southern Arizona rancher George Alan Kelly...

Associated Press

Trial of a southern Arizona rancher charged in fatal shooting of unarmed migrant goes to the jury

Closing arguments were made against a southern Arizona rancher accused of shooting an undocumented migrant on his land to death on Thursday.

34 minutes ago

Donald Trump's hush money trial: 12 jurors selected...

Associated Press

Although 12 jurors were picked for Donald Trump’s hush money trial, selection of alternates is ongoing

A jury of 12 people was seated Thursday in former President Donald Trump's hush money trial. The proceedings are close to opening statements.

3 hours ago

A anti-abortion supporter stands outside the House chamber, Wednesday, April 17, 2024, at the Capit...

Associated Press

Democrats clear path to bring proposed repeal of Arizona’s near-total abortion ban to a vote

Democrats in the Arizona Senate cleared a path to bring a proposed repeal of the state’s near-total ban on abortions to a vote.

1 day ago

Most Americans are sleepy new Gallup poll finds...

Associated Press

Most Americans say they don’t get enough sleep, according to new Gallup poll

A new Gallup poll found that most Americans are sleepy — or, at least, they say they are. Multiple factors play into this.

3 days ago

Near-total abortion ban in Arizona dates back to Civil War era...

Associated Press

Near-total abortion ban dates back to 1864, during the Civil War, before Arizona was a state

The near-total abortion ban resurrected last week by the Arizona Supreme Court dates to 1864, when settlers were encroaching on tribal lands.

3 days ago

Tracy Toulou...

Associated Press

How to tackle crime in Indian Country? Empower tribal justice, ex-Justice Department official says

A recently retired director of the Justice Dept. says the federal government hasn't given tribal justice systems equal recognition.

4 days ago

Sponsored Articles

...

Condor Airlines

Condor Airlines can get you smoothly from Phoenix to Frankfurt on new A330-900neo airplane

Adventure Awaits! And there's no better way to experience the vacation of your dreams than traveling with Condor Airlines.

...

Collins Comfort Masters

Here’s 1 way to ensure your family is drinking safe water

Water is maybe one of the most important resources in our lives, and especially if you have kids, you want them to have access to safe water.

...

Day & Night Air Conditioning, Heating and Plumbing

Day & Night is looking for the oldest AC in the Valley

Does your air conditioner make weird noises or a burning smell when it starts? If so, you may be due for an AC unit replacement.

Australian health insurer says data of all customers hacked