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Highlights
- Reports suggest that few leading law firms have joined forces to take compensation action on behalf of millions against Medibank.
- Hackers stole customer data from Medibank and released those files on a dark web forum, late last year.
- As per Medibank, its total COVID-19 support stands at a record AU$950 million, as of December 2022.
Medibank Private Limited (ASX:MPL) is on the radar owing to reports suggesting a landmark data breach complaint against the ASX-listed private health insurance firm.
Reportedly three leading law firms have come together to take compensation action on behalf of millions against Medibank. The development is aimed at securing compensation for as many as 9.7 million affected customers.
The background
The company first reported unusual activity on its network in October last year. The company suggested that it roped in specialised cyber security firms to address the issue while taking quick actions. However, few days later, the company was tapped by a group seeking negotiations for the alleged removal of customer data.
Later, Medibank suggested that hackers took data, including its customer data, ahm (AHM health insurance is part of Medibank) and international student customers.
In November 2022, Medibank reported that hackers released files on a dark web forum including names, birth dates, phone numbers, some health claims data, and email and postal addresses. In some cases, there were passport numbers for international students (not the date of expiry).
In December 2022, Medibank systems were back online after operation safeguard. The company stated that its customer-facing platforms had been fully tested by IT security experts from Microsoft. They were operational with improved security protections.
Complaints from OAIC representatives
In December, Medibank reported complaints from OAIC representatives. Maurice Blackburn lodged a representative complaint, alleging that Medibank breached the Australian Privacy Principles. The complaint sought compensation for affected individuals due to the above-mentioned incident.
The company also received a letter from Bannister Law, indicating a planned representative complaint against Medibank.
The complaints were lodged with the Office of the Australian Information Commission (OAIC),
Medibank’s COVID-19 support package totals record AU$950 million
Last month, Medibank announced AU$207 million in COVID-19 support package for its customers. This would bring the company’s total COVID-19 support to a record AU$950 million. As per the company, this is the largest financial giveback from any major Australian health insurance fund to date.
MPL shares were trading at AU$2.885 midday on 17 January 2023.
