Star Health Discloses Details On Getting Ransom Demand Of $68,000 Post Customers' Data Leak

Star Health had earlier said that it is a victim of a targeted malicious cyberattack, however, now it has said that back in August, "the threat actor demanded a ransom of $68,000 in an email."

The statement came after Indian stock exchanges asked Star for more information about its ongoing investigation.

Source : Unsplash/Giorgio Trovato

Star Health, one of the biggest health insurance providers in India, disclosed on Saturday that it has been targeted by a cyber hacker demanding a ransom of $68,000 following a breach that exposed customer data and medical records. With a market capitalisation of around $4 billion, Star Health has been facing a significant reputational and operational crisis since Reuters reported on September 20 that a hacker utilized Telegram chatbots and a dedicated website to leak sensitive customer information, including tax records and medical claims.

In response to the situation, the company, which has seen its stock price drop by 11 per cent, has initiated internal investigations and is pursuing legal action against both the hacker and Telegram. The hacker's website continues to distribute samples of Star Health's customer data, intensifying the company's challenges.

Star Health Then V. Now

Star Health had earlier said that it is a "victim of a targeted malicious cyberattack," however, now the company has said that back in August, "the threat actor demanded a ransom of $68,000 in an email" addressed to the company's managing director and its chief executive.

The statement came after Indian stock exchanges asked Star for more information on Friday regarding a Reuters report about an investigation into claims that the company’s chief security officer was involved in the data leak. Star confirmed on Saturday that it had found no evidence of wrongdoing by the official, Amarjeet Khanuja, but the internal investigation is still ongoing.

Star also mentioned that Telegram has refused to provide the account details or permanently ban the accounts linked to the hacker, known as xenZen, despite receiving multiple requests. The company stated that it has requested help from Indian cyber security authorities to track down the hacker. Telegram, based in Dubai, has previously said that it removed the chatbots after Reuters alerted them about the issue.