Star Health faces ₹57L ransom demand after significant data breach
What's the story
Star Health, India's top health insurance provider, has confirmed that it received a ransom demand of $68,000 (around ₹57.2 lakh). This comes after a major data breach that exposed sensitive customer information.
The company is now collaborating with Indian cybersecurity authorities to trace the person behind this cyberattack.
The hacker used Telegram chatbots and a website to leak customers' confidential data, including tax details and medical claim documents.
Market impact
Market value and share price impacted
The data breach has triggered a major business and reputational crisis for Star Health, which is estimated to be worth around $4 billion.
Ever since the news of the data leak broke out on September 20, the company's shares have plummeted by 11%.
Following this cyberattack, Star Health has launched internal investigations and is suing both Telegram and the hacker.
Internal investigation
Star Health denies allegations against chief security officer
In a recent development, Star Health has denied allegations of its chief security officer's involvement in the data leak.
The company said it found no evidence of wrongdoing by Amarjeet Khanuja, though an internal investigation is still underway.
This statement was issued in response to queries from Indian stock exchanges following a Reuters report on the matter.
Cybersecurity collaboration
Star Health seeks assistance from Indian cybersecurity authorities
Star Health has also sought help from Indian cybersecurity authorities to help trace the hacker, who goes by the name xenZen.
The company has also expressed anger over Telegram's refusal to share account details, or permanently suspend accounts associated with the hacker despite repeated notices.
Telegram, a Dubai-based messaging app, had previously said that it removed the chatbots when Reuters brought them to its attention.