Medibank Defends Call To Not Pay Hackers Ransom

As Medibank reaches out to the 480,000 customers who had their healthcare data stolen by hackers, Australia's largest health insurer has defended its call to not pay the ransom.

Medibank chairman Mike Wilkins made the comment on Wednesday at the company’s annual general meeting following the “unprecedented” cyberattack.

Stay up-to-date on the latest news with The National Briefing - keeping you in the loop with news as it hits:

"From the outset, Medibank has been committed to doing the right thing by our customers, our people and the community in relation to this cybercrime," he said.

"This includes our decision not to pay any ransom demand for this data theft.

"Based on extensive advice from cybercrime experts, we formed the view that there was a limited chance paying a ransom would ensure the return of our customers' data and prevent it from being published.

Mr Wilkins said that the insurers communication with customers has been "transparent".

"This cybercrime event is unprecedented.

"There is no doubt that this crime is having an enormous impact on our customers and our community. This is a shocking crime - the size and scale of which we have never seen before," he added.

The boss of Australia's largest health insurer, David Koczkar said at the AGM that the cyber-attack had been “deliberate, designed to extort money by targeting our customers. Particularly some of the most vulnerable people in the community.”

The Russian cyber criminals responsible for the attack have not posted Medicare customers date to dark web since Monday, saying they would hold off until Friday after the insurers general meeting. 

Subscribe to The Briefing, Australia's fastest-growing news podcast on Listnr today. serves up the latest news headlines and a deep dive into a topic affecting you. All in under 20 minutes.