Star Health Data Breach: 3 Crore Customers Impacted, Allegations Against CISO – Rediff Moneynews

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Major Data Breach: Hacker Claims to Have Obtained Personal Data of 3.1 Crore Star Health Customers

In a shocking revelation that has sent ripples through the insurance sector, a hacker known as xenZen has claimed to have acquired the personal data of approximately 3.1 crore customers of Star Health Insurance. This alarming breach includes sensitive information such as mobile numbers, PAN details, addresses, and pre-existing medical conditions. The hacker has alleged that the Chief Information Security Officer (CISO) of Star Health was complicit in the data sale, raising serious questions about the company’s internal security protocols.

The Allegations Unfold

The situation came to light when UK-based researcher Jason Parker shared details on September 20, revealing that xenZen had launched a website showcasing sample data from Star Health Insurance. The hacker’s claims were further substantiated by an email exchange purportedly between xenZen and a senior official responsible for managing the company’s digital infrastructure. In a bold statement, xenZen declared, "I am leaking all Star Health India customers and insurance claims sensitive data. This leak is sponsored by Star Health and Allied Insurance Company, who sold this data to me directly."

The hacker’s assertions paint a troubling picture of corporate negligence and potential collusion, suggesting that the very individuals tasked with safeguarding customer data may have been involved in its illicit sale.

Star Health’s Response

In response to these grave allegations, Star Health Insurance has initiated a comprehensive forensic investigation, engaging independent cybersecurity experts to assess the situation. The company has stated that it is collaborating closely with government and regulatory authorities throughout the investigation process.

In a formal statement, Star Health emphasized its commitment to data protection, asserting, "We also timely approached the Madras High Court which in the attached order has directed all including certain third parties to disable access to the relevant information. We are diligently pursuing the implementation of this order." The company has also made it clear that the CISO is cooperating fully with the investigation and that no findings of wrongdoing have been established against him thus far.

Legal Proceedings and Court Orders

The Madras High Court has recognized the urgency of the situation, noting that protecting sensitive data is crucial to prevent further leaks. The court has scheduled a follow-up hearing for October 25, underscoring the seriousness of the allegations and the need for swift action.

Star Health has urged all platforms, hosting companies, social media channels, and users to take immediate measures to halt any unauthorized dissemination of customer data. The company reiterated that any unauthorized acquisition, possession, or distribution of customer data is illegal and must be addressed promptly.

The Hacker’s Tactics

XenZen has reportedly developed Telegram bots to facilitate access to the data of over 31 million customers, with updates extending until July 2024. Additionally, the hacker claims to have access to nearly 5.8 million insurance claims from the company, dating back to early August.

The hacker’s tactics included a video showcasing email communications with a senior company official, revealing the negotiation process for the data sale. Initially, the deal was set at USD 28,000, but the official allegedly demanded an increase to USD 150,000, citing the need to share profits with senior management to continue the data leak.

The Implications of Data Breaches

The ramifications of such a data breach extend far beyond the immediate concerns of Star Health Insurance. The exposure of personal details can leave individuals vulnerable to online scams, identity theft, and other malicious activities. As cyber threats continue to evolve, the importance of robust cybersecurity measures and ethical conduct within organizations cannot be overstated.

Conclusion

As the investigation into this alarming breach unfolds, the focus remains on ensuring the protection of customer data and restoring public trust in Star Health Insurance. The allegations against the CISO, if proven true, could have significant implications not only for the company but also for the broader insurance industry. Stakeholders are urged to remain vigilant and proactive in safeguarding sensitive information, as the digital landscape continues to present new challenges and threats.

In the coming weeks, all eyes will be on the Madras High Court and the findings of the ongoing investigation, as the fallout from this incident continues to develop. The case serves as a stark reminder of the critical importance of cybersecurity in an increasingly interconnected world.

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