Star Health under Cyber Pressure: Extortionists Demand Ransom

India's leading health insurer, Star Health, is facing a serious cyber crisis. Last Saturday, the company publicly stated that it was met with a ransom demand of 68,000 USD in August. This demand was a response to the unauthorized access and release of sensitive customer data and medical records by cybercriminals. Since the initial disclosure of this security incident by Reuters in mid-September, the company has struggled with reputational losses and an 11% drop in its stock price. Star Health has initiated legal action against Telegram and the hacker to prevent the continued release of data. However, Telegram has so far refused to provide information about the hacker's accounts or to permanently block them, despite previously deactivating chatbots following tips from Reuters. An internal investigation is ongoing to clarify potential internal involvement. Currently, Star Health emphasizes that no misconduct by Security Officer Amarjeet Khanuja has been identified. Meanwhile, the company has sought assistance from Indian cybersecurity authorities to locate the perpetrator. The situation remains dynamic as the company continues to face significant challenges in managing the crisis. It remains to be seen how effective the measures taken will be in mitigating the damage and restoring investor confidence.