Medibank share price slumps ahead of major shutdown and cybersecurity overhaul

The company shut down major systems and close retail stores this weekend.

| More on:
Man in a wheelchair at a desk, checking his computer.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • The Medibank share price is down 0.2% right now, trading at $2.975
  • Its fall comes amid news the company will be shutting down some of its major systems as part of a planned move to safeguard its network from hackers
  • It follows October's major cybersecurity breach 

The Medibank Private Ltd (ASX: MPL) share price is in the red on Friday amid news the company will be shutting down its systems to undertake a cybersecurity overhaul this weekend.

The company famously suffered a cyberattack in October that saw criminals take off with the personal – and often sensitive – data of 10 million Australians.

The Medibank share price is $2.975 right now, 0.17% lower than its previous close.

For comparison, the S&P/ASX 200 Index (ASX: XJO) is up 0.38% at the time of writing – spending its first morning in the green since Monday.

Let's take a closer look at the latest from the private health insurance company.

Medibank share price slumps amid cyber shutdown news

The Medibank share price is defying the market's gains this morning.

Meanwhile, the company is preparing to take its Medicare and ahm systems offline from 8:30pm AEDT tonight to strengthen its security protections and undertake maintenance. Its retail stores and customer contact centre will also close on Saturday.

It clarified there's been no suspicious activity detected since 12 October and the company apologised for any inconvenience caused by this weekend's works. Continuing:

This is the next necessary phase of our ongoing work to further safeguard our network, called 'Operation Safeguard'.

Since the cybercrime we have bolstered existing monitoring, added further detection and forensics capability across the Medibank system and network, and have scaled up analytical support via specialist third parties.

IT security experts from Microsoft will be onsite at the company's Melbourne headquarters to complete the operation, which has been in the planning stages for several weeks.

Latest on Medibank data hack

Medibank is also continuing to analyse stolen data the group behind its cyberattack published to the dark web.

It confirmed the number of customer files impacted by the breach remains the same. It will soon begin to contact customers who had limited provider related data made public, such as provider number, admission date and discharge date.

The Medibank share price is still 16% lower than it was before news of the attack broke. It is also down 14% year to date and 11% over the last 12 months.

Comparatively, the ASX 200 has dropped 5% in 2022 and 2% since this time last year.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Microsoft. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Financial Shares

A man holds his head as he looks at his laptop and contemplates more bills to pay.
Financial Shares

Down 19%! Is the GQG share price selloff an overreaction and buying opportunity?

Is now the time to pounce on this beaten down stock? Let's see what Goldman Sachs is saying.

Read more »

A woman sits at her computer with her chin resting on her hand as she contemplates her next potential investment.
Financial Shares

IAG share price reaches new 5-year high! What next?

It’s been a great period for the insurance giant. Could it keep rising?

Read more »

Shot of a young businesswoman looking stressed out while working in an office.
Financial Shares

This $7 billion ASX 200 stock just crashed 11%. What's going on?

There's trouble in India and it's weighing on this stock today.

Read more »

A happy male investor turns around on his chair to look at a friend while a laptop runs on his desk showing share price movements
Financial Shares

Here's what this top broker is saying about Macquarie shares

Is this investment bank heading to a new record high?

Read more »

A smiling businessman in the city looks at his phone and punches the air in celebration of good news.
Financial Shares

Up 25% in a year, why this ASX All Ords stock has 'plenty more upside'

Analysts think this stock could still have plenty of gas left in its tank.

Read more »

Two people climb to the summit and raise their arms in success as the sun rises brightly over the mountains.
Financial Shares

'Strong momentum': 2 ASX financial shares backed by top fundie for 2025

ASX financial shares had a strong trading session on Tuesday with several new price records set.

Read more »

A woman presenting company news to investors looks back at the camera and smiles.
Financial Shares

AMP shares on radar as M&A spotlight shines bright

The stock has rallied hard in 2024.

Read more »

Modern accountant woman in a light business suit in modern green office with documents and laptop.
Financial Shares

Are IAG shares still a buy for dividends at a 5-year high?

Here's my take on IAG's place in an income portfolio today.

Read more »