Star Health, India’s largest health insurance company, announced on Saturday that it had received a ransom demand of $68,000 from a cyberhacker following the leak of customer data and medical records.
Star Health, with a market capitalization of approximately $4 billion, has been facing a reputational and business crisis since September 20, when Reuters reported that a hacker had leaked sensitive customer information, including tax details and medical claims, through Telegram chatbots and a website. Since then, the company’s shares have fallen by 11%.
In response, Star Health launched internal investigations and took legal action against both Telegram and the hacker, whose website continues to share leaked data. The company has described itself as a “victim of a targeted malicious cyberattack.”
On Saturday, for the first time, Star Health revealed that in August, the hacker had sent an email to the company’s managing director and chief executive demanding $68,000 as ransom.
This statement came after Indian stock exchanges sought clarification from Star regarding a Reuters report alleging that the company was investigating its chief security officer, Amarjeet Khanuja, for involvement in the data breach. Star reiterated that no wrongdoing has been found on his part, though the investigation is still ongoing.
Star Health has reported that Telegram has not cooperated in providing account details or permanently banning accounts linked to the hacker, identified as xenZen, despite multiple notices. The company has also sought assistance from Indian cybersecurity authorities to help identify the hacker.
Telegram, based in Dubai, has not responded to requests for comment but had previously removed the chatbots in question when Reuters flagged them.
This ongoing data leak has posed a significant challenge for Star Health, impacting both its business reputation and customer trust.
Bhupendra Singh Chundawat is a seasoned technology journalist with over 22 years of experience in the media industry. He specializes in covering the global technology landscape, with a deep focus on manufacturing trends and the geopolitical impact on tech companies. Currently serving as the Editor at Udaipur Kiran, his insights are shaped by decades of hands-on reporting and editorial leadership in the fast-evolving world of technology.
