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Medibank has revealed that the cost of cleaning up and reinforcing itself after its 2022 cyber attack is set to reach over $126 million.
Following the incident in October 2022, which saw 9.7 million current and former customers across Medibank, ahm, and international student customers have their data compromised, Medibank has focused heavily on improving its security and response to cyber threats.
In its 2024 financial year results, the Aussie health insurer said it spent $39.8 million on “non-recurring cyber crime costs”, a 14.2 per cent drop from last year’s $46.4 million.
“This includes investment in the Medibank Uplift Program, which focuses on managing our approach to information security risk across the group,” as well as “legal and other costs related to regulator investigations and litigation”.
Medibank expects to spend roughly the same for the subsequent fiscal year, by the end of which time it should have completed most of its uplift.
“We’re expecting a similar amount in FY25 – so around $40 million,” said Medibank chief financial officer Mark Rogers in a call with investors, seen by Cyber Daily.
“Around 60 per cent to 65 per cent of that spent in FY25 will be in the actual IT security uplift component of the programme. We expect by the end of [FY]25, the vast majority of the work we need to do in that programme will have been completed.
“So then, looking into FY26, the costs will continue, but the majority of those costs then will be associated with the litigations.
“So, [FY]25 is about completing the technology uplift. There still will be some uplift costs in [FY]26, but largely the [FY]26 costs will reflect the cost of defending the litigations that we’ve got on foot.”
Customers are also regaining trust in Medibank, with the insurer revealing that its acquisition rates were returning to normal pre-cyber attack levels, while its budget brand, ahm, saw its acquisition rate also benefit from a strong increase.
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