Medibank share price lifts on cyberattack ransom update

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

Key points
  • The Medibank share price is in the green this morning
  • The ASX 200 insurer was hit by a massive cyber breech on 12 October
  • Medibank said all its customers may have been impacted and it will not be paying the cybercriminal any ransom demands

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.

A woman looks in anticipation at her laptop, watching eagerly.

Image source: Getty Images

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.

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.

More on Healthcare Shares

Happy healthcare workers in a lab.
Healthcare Shares

Mesoblast reports Ryoncil revenue surge and improved cash spend

Mesoblast reported a 44% jump in Ryoncil revenue and a substantial improvement in operating cash spend.

Read more »

A female scientist in a laboratory setting using a tablet to review data, with a male scientist working in the background.
Healthcare Shares

Down 44%: Will you regret not buying Pro Medicus shares?

The shares have fallen hard, but the business itself continues to grow at an impressive rate.

Read more »

Two colleagues looking at a graph and comparing share prices.
Healthcare Shares

CSL shares: Buy, hold, or sell?

The shares have recovered sharply, so I wanted to see whether the valuation still stacks up.

Read more »

Two colleagues looking at a graph and comparing share prices.
Healthcare Shares

Telix vs Clinuvel Pharmaceuticals: Which ASX healthcare share deserves your next $1,000 of investment capital?

We compare Telix and Clinuvel Pharmaceuticals on valuation, dividends, and momentum—which ASX healthcare stock looks more compelling now?

Read more »

Numerous Australian dollar notes laid out.
Healthcare Shares

I'd buy 6,462 shares of this ASX stock to aim for $200 a month of passive income

This business can provide very healthy dividends.

Read more »

A doctor appears shocked as he looks through binoculars on a blue background.
Healthcare Shares

UBS thinks Telix Pharmaceuticals shares will go how high?

Good news out of the US has led to a share price target upgrade.

Read more »

Scientist taking down notes from a tablet, with two other scientists working in the background.
Healthcare Shares

Healius vs Australian Clinical Labs: Which ASX pathology share wins?

Healius and Australian Clinical Labs are both top pathology providers, but one stands out for profits, dividends, and recent momentum.

Read more »

Doctor looks at a graph on a tablet.
Healthcare Shares

Ramsay Health Care vs Sonic Healthcare: Which healthcare stock is better value?

Which offers better value — Ramsay Health Care or Sonic Healthcare? I compare their fundamentals, dividends, momentum and reveal my…

Read more »