Star Health reveals details on $68,000 ransom demand after customer data breach

Star Health, one of India’s largest health insurance providers, revealed on Saturday that it has been targeted by a hacker who is demanding a $68,000 ransom after a breach that exposed customer data and medical records. With a market capitalization of about $4 billion, Star Health has faced a major reputational and operational crisis since Reuters reported on Sept. 20 that a hacker used Telegram chatbots and a website dedicated to leaking sensitive customer information, including tax records and medical claims.

In response to the situation, the company, which has seen its share price drop by 11 percent, has launched internal investigations and is taking legal action against the hacker and Telegram. The hacker’s website continues to distribute samples of Star Health’s customer data, intensifying the company’s challenges.

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Star Health Then V. Now

Star Health had previously said it was a “victim of a targeted malicious cyberattack,” but the company has now said that in August, “the threat actor demanded a ransom of $68,000 in an email electronic” addressed to the company’s managing director and its executive director.

The statement came after Indian bourses asked the Star on Friday for more information on a Reuters report on an investigation into claims the company’s security chief was involved in the data breach. The Star confirmed on Saturday that it had found no evidence of wrongdoing by the officer, Amarjeet Khanuja, but the internal investigation is still ongoing.

Star also mentioned that Telegram has refused to provide account details or permanently ban accounts linked to the hacker, known as xenZen, despite receiving multiple requests. The company said it has sought help from Indian cyber security authorities to track down the hacker. Dubai-based Telegram has previously said it removed the chatbots after Reuters alerted them to the problem.