Medibank to Loose $300 Million
Medibank has finally revealed the expenses that occurred after one of Australia’s biggest cyber attacks of all time.
In Medibank's new 2023 annual report, it has been revealed that up to $46.4 million was spent last year following the cyber attack that took place. $22 million in administration expenses, $15.6 million in employee benefits expenses, $7.5 million in extra technology expenses, and $1.2 million in marketing expenses. Medibank is anticipated to spend another $30 million by the end of this year and $35 million in costs next year. A high chance the expenses could exceed $80 million!
“We expect $30 million to $35 million in 2024 for further IT security uplift, legal costs, and other costs related to regulatory investigations and litigation,” Medibank said.
“This does not include the impacts of any potential findings or outcomes from regulatory investigations or litigation”.
The 2023 audit was done by an independent company named PwC Australia. Due to the cyber incident that took place, PwC doubled down on extra work to ensure the report's accuracy including checking if Medibank's monitoring system for identifying any inconsistencies or discrepancies in financial reporting information was functioning properly.
More Expenses to Come!
In June, the Australian Prudential Regulatory Authority (APRA) launched a targeted technology review and imposed an extra $250 million capital requirement on Medibank in the wake and destruction of the data breach that is yet to be finalised in the class action lawsuit.
Additionally, the company is being sued by another two separate class action lawsuits with costs yet to be finlised. Two lawsuits now combined into one, are customers of Medibank, being led by the law firms ‘Baker and McKenzie’ and ‘Slater and Gordon’. Another two cases, with application to the Federal Court to consolidate into one lawsuit, are shareholders of Medibank, being led by ‘Quinn Emanuel’ and ‘Phi Finney McDonald’.
Medibank Hack?
In October of 2022, Australia’s biggest recorded data breach took place at Medibank. The attackers obtained the credentials from a third-party contractor of Medibank and stole and leaked information of up to 9.7 million Aussies customers causing catastrophe for the nation for years to come.
Click the link below to see more about the Medibank hack:
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