Medibank Breach Sparks Ransom Debate: What Really Happens When Hackers Demand Money?

A cyberattack on Medibank—one of Australia’s biggest health insurers—has exposed serious flaws in how organisations protect sensitive data. Nearly 10 million customer records were compromised, showing how quickly a breach can spread and how much damage it can do. The attack started when a hacker used stolen employee login details to get in, then moved through the system with little resistance. Within hours, they had pulled nearly 200GB of data, using tricks like data compression and splitting files to hide their tracks. The breach wasn’t just a local issue; it escalated fast, with the notorious REvil group demanding a ransom on the dark web. This isn’t just about data loss—it’s a warning that even well-resourced companies are vulnerable when basic security fails.

The idea of paying ransoms to get data back is tempting, but it’s risky and often doesn’t work. There’s no promise that attackers will delete data or stop attacking after you pay. In fact, many hackers keep their data and just take the money. Paying gives them more incentive to target other companies. It also opens the door to legal trouble and public backlash, especially if the data isn’t recovered. Instead of handing over cash, organisations should focus on real defences that stop attacks before they happen.

Why Paying Ransoms Doesn’t Work

• No guarantee data will be returned or deleted: Even if you pay, attackers don’t have to release the data or stop their operations. They’re more interested in money than compliance.
• It funds cybercrime: Every payment goes straight into the hands of hackers, giving them a clear financial reward and making future attacks more likely.
• It harms reputation and could lead to legal issues: Paying a ransom can damage trust with customers and regulators, even if the data is eventually recovered.

What Real Security Should Look Like

• Stronger authentication: Enforcing multi-factor authentication (MFA) on all employee accounts makes it harder for hackers to use stolen credentials.
• Network segmentation and monitoring: Splitting systems into isolated segments limits how far a breach can spread and makes it easier to spot suspicious activity early.
• Regular audits and checks: Running frequent security reviews helps catch weaknesses before they’re exploited—like a broken door that could let someone in.

This breach isn’t just a tech failure. It shows how deeply cybersecurity ties into business operations and public trust. Without real, consistent action—like better access controls and constant monitoring—any organisation remains exposed.