Medibank executives to cash in $7.3 million in bonuses

By ERIN MODARO

Medibank customers affected by the recent cyber attack, many of whom have had their private medical information leaked to the dark web, have expressed outrage at top executives being granted millions in dollars of bonuses.

Executives met at an annual shareholder meeting on Wednesday to address the Russian cyber attack.

Medibank CEO David Koczkar told attendees that the “weaponising of the private data of many Australians… is malicious”. 

Koczkar apologised to Medibank customers for the breach and outlined the plan for contacting those affected. He defended the company’s rejection of paying the $15 million ransom as demanded by the attackers.

“While we unreservedly apologise for the impact of the release of the data, we cannot as a community, pay criminals who are likely to continue to extort us all” he said.

This malicious cyber activity is deplorable and Australia condemns it unreservedly.

We will do all we can to hold these actors to account.

I encourage all Australians to remain vigilant and take steps to protect themselves online. https://t.co/BINXZKA0zk

— Senator Penny Wong (@SenatorWong) November 11, 2022

“This decision is consistent with the position of the Australian Government” Medibank Chair Mike Wilkins explained.

Wilkins also addressed shareholders, saying that “Our CEO David Koczkar and executive team have shown their ongoing focus on our customers”. 

At least 9.7 million Australia’s had their information stolen from the insurer. Customers expressed anger at the announcement that executives would still be raking in over $7.3 million in bonuses for the current financial year.

Wilkins said that remuneration would be reconsidered next financial year after an independent investigation into the attack has taken place.

“Where is their moral compass?” one twitter user said. “They shouldn’t collect anything until the investigation is complete, and victims have been compensated”.

So, Medibank Executives are going to keep millions in bonuses, despite the fact 10 million people have been hacked?

Where is their moral compass?

They shouldn’t collect anything until the investigation is complete, and victims have been compensated.

— fifimurray (@fifimurray2) November 16, 2022

Shareholders at the meeting fielded questions to the executives about what is being done.

Australian Federal Police handle investigation

“I know Australians are angry, distressed and seeking answers” AFP Commissioner Reece Kershaw said last week. 

“The AFP and our partners are not going to give up in bringing those responsible to justice” Kershaw said, addressing the Australian public. 

The commissioner made a plea to Australian companies: “Ensure your systems are protected.”

The AFP are also urging people not to post any of the sensitive information to social media.

“I know you will do the right thing and continue to assist us in protecting the community by not aiding these criminals by posting or publishing this sensitive information” Kershaw said. 

Currently, Medibank is in the process of contacting all customers impacted by the data breach, but has said that it is prioritising cases where sensitive medical information has been stolen.