Star Health Faces $68,000 Ransom Demand Amid Data Leak Crisis
Star Health, India’s leading health insurer, disclosed on Saturday that it had been targeted by a cyberhacker demanding $68,000 in connection with a breach of customer data and medical records.
Reputational Crisis and Business Impact
With a market capitalization of approximately $4 billion, Star Health finds itself embroiled in a reputational and business crisis following a report by Reuters on September 20. The report unveiled how a hacker utilized Telegram chatbots and a website to expose customers’ sensitive information, including tax details and medical claim documents.
Subsequently, the company’s shares plummeted by 11%, prompting Star Health to initiate internal inquiries and pursue legal action against both Telegram and the hacker responsible. Despite these efforts, the hacker’s website persists in sharing samples of compromised data belonging to Star Health’s customers.
Ransom Demand Revelation
Publicly addressing the situation for the first time, Star Health disclosed that in August, they received an email demanding $68,000 from the threat actor. The email, directed to the company’s managing director and chief executive, further escalated the severity of the cyberattack.
Following a report by Reuters, Indian stock exchanges sought clarification from Star Health on Friday regarding allegations that the company’s chief security officer, Amarjeet Khanuja, was potentially involved in the data breach. While Star Health asserted on Saturday that no wrongdoing was found on Khanuja’s part, the internal investigation is ongoing.
Struggle with Telegram and Hacker Cooperation
Despite Star Health’s efforts, Telegram has refused to disclose the account details or permanently ban accounts associated with the hacker, identified as xenZen. Star Health expressed frustration with Telegram’s inaction, stating that the messaging platform had not adhered to multiple notices issued regarding the matter.
Star Health has enlisted the support of Indian cybersecurity authorities to assist in identifying the hacker. However, Telegram has remained unresponsive to requests for comment, raising concerns about the cooperation between the messenger app and affected entities.
Telegram previously acknowledged removing the chatbots flagged by Reuters, indicating a degree of responsiveness from the Dubai-based company. However, the persistence of the data leak and hacker activity underscores the ongoing challenges faced by Star Health in securing its customers’ sensitive information.
© Thomson Reuters 2024
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For more information on cyber security threats and data breaches, visit cyber.gov.au.