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Medibank improves security systems following data breach

Customers of Australia’s largest health insurer were unable to access their accounts overnight after the company was forced to take action following a recent cyber attack.

Medibank recovery cost will be more than the ransom

Millions of Medibank customers can now access their accounts once again after the health insurer shut down its online systems in the wake of a huge cyber attack.

Medibank shut down its IT systems, retail stores, and customer contact centres on Friday night as part of “Operation Safeguard”.

On Saturday, Australia’s biggest health insurer announced the online system update was successfully completed ahead of schedule at 6.15am.

Medibank customers can once again access their online services after the health insurer updated its systems following a major data breach in October. Picture: NCA NewsWire/Tertius Pickard
Medibank customers can once again access their online services after the health insurer updated its systems following a major data breach in October. Picture: NCA NewsWire/Tertius Pickard

The initial plan was to have all customer-facing platforms tested with IT security experts from Microsoft until Sunday at the latest.

But the company announced on Saturday all systems are operational with enhanced security protections.

Customers can now access Medibank systems as usual, including the website and apps, and they can once again use HICAPS when making claims.

However, retail stores and call centres will remain closed until December 12, when they’re expected to reopen to the public.

The security overhaul comes after Russian hackers breached Medibank’s customer database in October and obtained the personal information and health records of almost 10 million current and former customers.

The cyber criminals released the sensitive data online after Medibank refused to pay a $15 million ransom.

The hackers published customer information about abortion, drug and alcohol abuse, and mental health disorders on the dark web.

In a statement on Saturday, Medibank explained the maintenance undertaken was to further strengthen its systems and enhance security protections.

Medibank have upgraded their online security systems after hackers leaked more highly personal health data of customers. Picture: NCA Newswire / Gaye Gerard
Medibank have upgraded their online security systems after hackers leaked more highly personal health data of customers. Picture: NCA Newswire / Gaye Gerard

“While there has been no further suspicious activity detected inside our systems since October 12, 2022, the maintenance work conducted overnight is part of Operation Safeguard, which includes measures to further strengthen security,” the statement read.

“This includes the recent addition of two-factor authentication in our contact centres to increase the level of security for our customers when they call for support.

“Since the cybercrime we have bolstered existing monitoring, added further detection and forensics capability across the Medibank system and network and have scaled up analytical support via specialist third parties.”

Read related topics:Medibank
Aisling Brennan
Aisling BrennanQueensland general news reporter

Aisling Brennan is the Queensland general news reporter at NCA NewsWire with a focus on covering issues that matter to the Sunshine State, including breaking news, court and crime. Prior to joining the Wire, Aisling spent six years covering Northern NSW and south east Queensland regions.

Original URL: https://www.theaustralian.com.au/breaking-news/medibank-improves-security-systems-following-data-breach/news-story/23f759abc2989aff335e785edf2b1a01