Star Health, the largest health insurance provider in India, announced on Saturday that it has been targeted by a cyber extortionist demanding a ransom of $68,000 in connection with a data breach involving customer information and medical records.
The company, which boasts a market capitalization of approximately $4 billion, faces significant reputational and operational challenges following a Reuters report on September 20. The report revealed that a hacker utilized Telegram chatbots and a website to expose sensitive data belonging to customers, including tax information and medical claim documents.
In the wake of this incident, Star Health has experienced an 11% drop in its stock value. The insurer has initiated an internal investigation and is pursuing legal action against both Telegram and the hacker, who continues to disseminate samples of customer data through their website.
For the first time, Star Health disclosed that the cyber threat actor sent an email in August demanding a ransom of $68,000, addressed to both the managing director and the chief executive officer.
This announcement followed inquiries from Indian stock exchanges regarding a Friday report from Reuters, which suggested that the company was probing claims of involvement in the data breach by its chief security officer.
Star Health reiterated on Saturday that its investigation has not identified any misconduct by Amarjeet Khanuja, the chief security officer, although the internal review is still ongoing.
According to Star, Telegram has not provided access to account information or permanently banned accounts associated with the hacker, identified as “xenZen,” despite receiving multiple notifications regarding the issue.
The company has reached out to Indian cybersecurity authorities for assistance in identifying the perpetrator.
Telegram has not responded to requests for comment on the matter.
The messaging platform stated previously that it had removed the chatbots once they were reported to them by Reuters.
© Thomson Reuters 2024
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