The Medibank Private Ltd (ASX: MPL) share price has tumbled nearly 21% since the company revealed what initially looked to be a relatively benign "cyber incident".
The known scope of the 'incident' has since multiplied. The private health insurer admitted a hacker accessed the personal data – including certain medical information – of all its customers last week.
The Medibank share price plummeted 18% on Wednesday after the company warned the attack could bring a $25 million to $35 million dint to its bottom line.
However, experts are sceptical that the S&P/ASX 200 Index (ASX: XJO) financial stock's pain will end there.
The Medibank share price currently stands at $2.79.
Image source: Getty Images
Is the cyberattack still a risk to the Medibank share price?
The Medibank share price has tumbled amid what has the potential to be a disastrous cyberattack.
As the personal and sensitive data of millions of Australians hangs on the line – with hackers apparently demanding a ransom – the company withdrew its policy growth guidance and flagged a cost of up to $35 million.
That's before considering potential remediation, regulatory, or litigation costs resulting from the attack.
The cyberattack on Medibank comes just weeks after a major hack unfurled at Optus.
The telco could face multiple class actions following the incident. Law firms Maurice Blackburn and Slater & Gordon Limited (ASX: SGH)are both investigating potential legal action.
Similar action against Medibank is being considered in the wake of its hack, The Australian reports.
Of course, both investors and customers of the health insurer may feel injured following the data breach.
Meanwhile, the Office of the Australian Information Commissioner (OAIC) is working with the Australian Communications and Media Authority to investigate the Optus hack.
It aims to find if the telco properly protected customer data and complied with Australian Privacy principles. If the regulator finds serious or repeat offences, it could impose fines of up to $2.2 million for each contravention through the Federal Court.
No such investigation into Medibank has been announced thus far.
What do brokers say?
Citi dropped its price target for Medibank shares by 25% in the cyberattack's wake, my Fool colleague James reports.
The broker said it remains very uncertain about the full impact of the hack, continuing:
Key considerations from here will be the precise nature of the impact and the reaction of consumers to it, which is hard to gauge.
This could see the share price move in either direction, but the extent of the current uncertainty moves us to neutral, lowering our target price to $3.
That suggests a potential 7.5% upside on the Medibank share price's current level.
