Medibank share price lifts on cyberattack ransom update

The Medibank Private Ltd (ASX: MPL) share price is up 1.06% in early trade following an update from the S&P/ASX 200 Index (ASX: XJO) health insurer on the October data breach.

Medibank shares were placed in a trading halt for two days at the company’s request on 13 October after news broke that customer medical data may have been hacked.

The initial fears proved founded, and the company again requested a trading halt later in October. When it resumed trading on 26 October, the Medibank share price closed down 18.1% on the day after the insurer revealed “significant amounts” of medical-related data from all of its customers may have been compromised.

Here’s what the company reported today.

What’s the latest response to the Medibank hack?

The Medibank share price is in the green after the company reiterated that it was taking “decisive action” related to the October cybercrime to protect its customers.

CEO David Koczkar also offered another “unreserved apology” to the impacted customers, saying the company understands the stress the data breach is causing them.

Medibank also reported it would not make any ransom payments to the criminal behind the hack.

Commenting on the company’s decision not to pay the ransom, Koczkar said:

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.

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.

At this stage of the investigation, Medibank believes the hacker accessed the name, date of birth, address, phone number and email address of roughly 9.7 million current and former customers and some of their authorised representatives.

“We will continue to support all people who have been impacted by this crime through our Cyber Response Support Program,” Koczkar said. “This includes mental health and wellbeing support, identity protection and financial hardship measures.”

The Medibank share price may also be getting some reprieve after the insurer said it had not detected any additional “suspicious activity” in its systems since the 12 October breach. It is continuing to work closely with the Australian Cyber Security Centre and the Australian Federal Police on the matter.

Medibank advised all former and current customers to remain vigilant with any online communications and transactions.

How has the Medibank share price tracked in 2022?

The Medibank share price was in the green for the calendar year until the fallout from the cyber-attack saw investors hitting the sell button. As of this morning, Medibank shares are down 18% in 2022, compared to a 9% loss posted by the ASX 200.

The post Medibank share price lifts on cyberattack ransom update appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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