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Hacker demands $68,000 ransom after Star Health data leak

Claim communicated via email directed to companyโ€™s managing director and chief executive

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  • Telegram reluctant to share account details or to permanently ban accounts associated with the hacker, even after multiple notifications.
  • Star Health seeks assistance from Indian cybersecurity authorities to help trace and apprehend the perpetrator.

Star Health and Allied Insurance Co. Ltd, Indiaโ€™s largest health insurer, disclosed on Saturday that the hacker had demanded a ransom of $68,000 in August.

The demand was communicated via email directed to the companyโ€™s managing director and chief executive. The revelation underscores the severity of the situation, as the company now faces the dual challenges of addressing the fallout from the data leak while also contending with the threat of extortion.

The health insurer is currently grappling with a significant cybersecurity crisis following a data breach that has compromised sensitive customer information.

Shares take beating

The incident, which came to public attention on September 20, revealed that a hacker had exploited Telegram chatbots and a dedicated website to leak personal data, including tax details and medical claim documents.

The breach has not only endangered customer privacy but has also led to a sharp decline in the companyโ€™s stock value, which has dropped by 11 per cent and closed the week at Rs547.6 per cent.

The company has responded proactively by initiating internal investigations and pursuing legal action against both the hacker, identified as โ€œxenZen,โ€ and Telegram, the platform used for the data dissemination.

Ongoing probe

Despite these efforts, Telegram has been reluctant to cooperate fully, having declined to share account details or to permanently ban the accounts associated with the hacker, even after multiple notifications from Star Health.

Amidst the turmoil, Star Health has sought assistance from Indian cybersecurity authorities to help trace and apprehend the perpetrator. The company has also faced scrutiny regarding the potential involvement of its chief security officer, Amarjeet Khanuja, in the data breach.

However, Star Health has maintained that its internal investigation has found no evidence of wrongdoing on Khanujaโ€™s part, though the inquiry remains ongoing.

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