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‘US$1 per customer’: Medibank ransom claim

The hackers allegedly behind the theft of Medibank data linked to 9.7 million customers have revealed they allegedly demanded a US$1 per customer ransom from the health insurer.

In a chilling message posted on the dark web overnight, the ransomware group also claimed it had released sensitive details of customers’ medical procedures. The post said:

Added one more file abortions.csv … Society ask us about ransom, it’s a 10 millions usd. We can make discount 9.7m 1$=1 customer.

The group began releasing Medibank data on the dark web in the early hours of Wednesday morning under “good-list” and “naughty-list”.

The first wave included names, birthdates, addresses, email addresses, phone numbers, health claims information, Medicare numbers for Medibank’s ahm customers and passport numbers for international student clients.

Medibank confirmed on Wednesday:

The files appear to be a sample of the data that we earlier determined was accessed by the criminal.

We expect the criminal to continue to release files on the dark web.

Medibank revealed this week it had rejected hacker demands it pay a ransom in return for the data not being released.

Asked what people should do if they were contacted by someone claiming to have sensitive information about them, federal minister Annika Wells reiterated the government’s advice was not to pay ransoms.

She told Nine Network today:

You do not pay the ransom.

You’re making the assumption that that is true and what we’re saying is that may not necessarily be the case – plenty of scumbags out there are going to try and make the most of this situation.

Medibank had warned more customer data would be uploaded to the dark web, which is what appears to have happened in the early hours of Thursday.

Australian federal police are ramping up efforts to catch those behind the huge data breach.

– from AAP

Key events

Filters BETA

‘Safe harbour’ mechanism needed to boost company confidence to disclose cyber-attacks, opposition says

Patterson says the director general the Australian Signals Directorate, Rachel Noble, is “very supportive” of his proposal for a “safe harbour” mechanism to allow companies to disclose data attacks without immediate fear of legal ramifications.

Before estimates this week, I discussed with the director general the Australian Signals Directorate (ASD), Rachel Noble, whether or not some kind of safe harbour is needed so that in a crisis companies have confidence that they can share information with ASD to help deal with the threat in the immediate aftermath of an attack before they have to start worrying about legal ramifications from the privacy commissioner and others. And Rachel Noble was very supportive of that idea.

It’s an idea that’s been put to me by industry because they say they are anxious that their companies will think twice about whether they should cooperate to defeat the threat because they’re worried about those legal ramifications and those fines. And, if that is the case, that’s very unproductive and it will stall or an effective response to these crises.

Opposition says if new Medicare card numbers needed, government should pay

The shadow minister for cyber security and countering foreign interference, James Paterson, follows Bill Shorten on ABC radio, giving his two cents on this latest news of the Medibank data leak.

Paterson says he welcomes the measures the government has put in place, including supporting state police.

He goes on to say there are “other things that government will need to contemplate in the coming days and weeks”:

My No 1 focus today is Medibank customers who will be very distressed by the news that their data appears to be leaked on the web by the hackers. They’ve made good on their threat, unfortunately. This is the worst-case scenario.

There are other things that government will need to contemplate in the coming days and weeks. For example, as we saw in the Optus case, where the government issued identification, like Medicare numbers need to be reissued. If that’s the case, that should be done free and, it should be done promptly.

Shorten urges victims of data breach to ‘contact us’ to replace government ID

NDIS minister Bill Shorten is asked about data breaches after the latest Medibank leak as part of his ABC Radio interview.

Shorten supports Medibank not giving into ransom demands, saying this would “incentivise it happening”:

In terms of people whose ID is compromised, where it’s government identification, contact us, so we can help replace it and help change it.

Patricia Karvelas:

Will that be free of charge?

Shorten:

Yes, for the person.

‘US$1 per customer’: Medibank ransom claim

The hackers allegedly behind the theft of Medibank data linked to 9.7 million customers have revealed they allegedly demanded a US$1 per customer ransom from the health insurer.

In a chilling message posted on the dark web overnight, the ransomware group also claimed it had released sensitive details of customers’ medical procedures. The post said:

Added one more file abortions.csv … Society ask us about ransom, it’s a 10 millions usd. We can make discount 9.7m 1$=1 customer.

The group began releasing Medibank data on the dark web in the early hours of Wednesday morning under “good-list” and “naughty-list”.

The first wave included names, birthdates, addresses, email addresses, phone numbers, health claims information, Medicare numbers for Medibank’s ahm customers and passport numbers for international student clients.

Medibank confirmed on Wednesday:

The files appear to be a sample of the data that we earlier determined was accessed by the criminal.

We expect the criminal to continue to release files on the dark web.

Medibank revealed this week it had rejected hacker demands it pay a ransom in return for the data not being released.

Asked what people should do if they were contacted by someone claiming to have sensitive information about them, federal minister Annika Wells reiterated the government’s advice was not to pay ransoms.

She told Nine Network today:

You do not pay the ransom.

You’re making the assumption that that is true and what we’re saying is that may not necessarily be the case – plenty of scumbags out there are going to try and make the most of this situation.

Medibank had warned more customer data would be uploaded to the dark web, which is what appears to have happened in the early hours of Thursday.

Australian federal police are ramping up efforts to catch those behind the huge data breach.

– from AAP

Coalition’s staff cap has fuelled lack of payment integrity, Shorten says

Bill Shorten goes on to criticise the NDIS staff cap implemented by the Coalition government:

When there were 180,000 participants in the scheme, the staff numbers were around 3,500 to 4,000. And the government of the day said, ‘OK, no more staff.’

Now the scheme has half a million people-plus, and what’s happened is that we’ve brought in contractors or labour hire or partners in the community and the scheme hasn’t been well, in my opinion, supervised and well loved.

And as a result you know, the payment system. I don’t think there’s sufficient scrutiny on the invoices that gets submitted for services which are provided.

We’re going to have to put more effort into payment integrity, more effort into monitoring the invoices.

‘It was to be a 50/50 split’

RN Breakfast host Patricia Karvelas asks Bill Shorten if that means he thinks some of those kids shouldn’t be on the NDIS.

Shorten:

I don’t blame someone for seeking to get support for the child. What does make me wonder is the state school systems providing the support for kids with developmental and learning delays? Are they doing enough or not? How can you force their hand to do it so that these people aren’t going on the NDIS?

Originally, when the NDIS was created, it was to be a 50/50 split, at the moment the federal government is paying 64% to 66% of the scheme and states are paying in the mid 30s.

NDIS ‘can’t be the only lifeboat in the ocean’, Shorten says

Bill Shorten goes on to say that the distribution of responsibilities for funding needs to be distributed more evenly with other bodies like state governments stepping up, so the burden doesn’t only fall on the government scheme:

I also think there’s a challenge with the state’s what’s happened is now the NDIS exists, everything becomes an NDIS matter. It can’t afford to be the only lifeboat in the ocean for people with a disability.

[The NDIS] was designed for the most profoundly and severely impaired Australians, not for everyone with a disability.

All of the coverage of it looks at the cost and that’s legitimate, but it’s not cost in a vacuum. We are seeing improvements is half a million people who for the first time in many cases, most cases are receiving support, which previously fell to a crisis-driven system. So this is an investment and it’s delivering good returns with more kids getting better results in terms of our education. There’s more people with disabilities participating in work. We’re seeing improvement in terms of the quality of life for hundreds of thousands of people and their families.

Bill Shorten addresses NDIS cost blowouts

The minister for the NDIS, Bill Shorten, is speaking to ABC Radio this morning about those cost blowouts to the disability scheme of up to $100bn a year predicted in last month’s budget.

ABC Radio asks Shorten if the rapid growth in participants has been driving the blowouts:

The scheme hasn’t been well managed in the nine years. There’s a variety of reasons why the scheme is growing at the rate it is.

There are certainly more kids coming onto the scheme than was originally forecast. So that’s true. But just the point about those kids, they tend to be pretty minimal cost.

So, it is a factor but I don’t think it’s the only feature, what I do think is that there has been clunky decision making within the organisation, there’s been a lack of attention on the payment side … In other words, what service providers are charging, who’s taken the scheme for a lend?

My focus is not that people with disabilities, profound disabilities, are doing the wrong thing. They’re not. I do think there is rent-seeking behaviour by some providers, and not all of them, but some of them.

Defence reveals ‘rotten egg gas’ problem in Pacific patrol boats

Daniel Hurst

Daniel Hurst

Department of Defence officials say they are hoping to fix problems with the Guardian-class patrol boats in coming weeks after revealing an “ongoing issue” with hydrogen sulphide from the vessels’ waste management systems.

Australia has so far given 15 Guardian-class patrol vessels to regional neighbours, starting with the delivery of one to Papua New Guinea in November 2018, but the government announced four months ago that it had found a number of problems, including carbon monoxide entering part of the boat.

Hugh Jeffrey from the Department of Defence mentioned the hydrogen sulphide issue during questioning by the Greens senator David Shoebridge at a Senate estimates hearing last night. Hydrogen sulfide, or H2S, is a colourless toxic gas that can smell like rotten eggs:

As with all new capabilities, we have some maintenance issues. There has been a specific issue in relation to H2S, a toxic gas, created by the ship’s grey-water and black-water systems. We’ve been working this issue intensively with Austal, the ship manufacturer. They have been committed to resolving this, as have we, and they’re currently trialling steps to improve the robustness of the grey-water and black-water sewerage systems on those boats.

The head of maritime systems, Rear Admiral Wendy Malcolm, said Austal was “working in Cairns at the moment to trial those [steps] and subsequent to those trials proving effective over the next two to three weeks, we will look to roll out those fixes across the fleet”. She said safety was “absolutely paramount”.

The foreign affairs minister, Penny Wong, added that the patrol boats were “a very important part of Australia’s engagement with and support to the Pacific” and the government was committed to fixing the problems as quickly as possible.

Last week an Austal spokesperson provided Guardian Australia with an update on the other issues:

Working with our component suppliers, Austal has rectified both the engine muffler and the Vulcan Engine Coupling, and also supported the Commonwealth in optimising the design to improve ventilation in the sick bay.

Workplace relations minister attacks Dutton’s amendment

The House of Representatives is due cast votes this morning on the government’s IR bill, including an amendment from opposition leader Peter Dutton to reintroduce the previous government’s changes to the “better off overall” test.

Workplace relations minister Tony Burke has taken to social media to criticise the amendment, saying it would only cut wages.

At 9:15am today the House of Reps will start a series of votes on the Secure Jobs Better Pay Bill.

One of those votes will be on an amendment moved by Peter Dutton.

Clause 4 of that amendment is extraordinary.

— Tony Burke (@Tony_Burke) November 9, 2022

The Dutton amendment calls on the Parliament to reintroduce the changes to the Better Off Overall Test that were introduced by the previous government in 2020.

Those changes tried to suspend the test entirely for new agreements for 2 yrs. The agreements could last at least 4 yrs

— Tony Burke (@Tony_Burke) November 9, 2022

The Dutton amendment has the effect of allowing agreements to cut any penalty rate, shift allowance or overtime rate.

In short it allows cuts to wages.

The difference could not be more clear.
The Govt bill will get wages moving.
The Dutton amendment would cut wages.#auspol pic.twitter.com/xyrHdvATJ1

— Tony Burke (@Tony_Burke) November 9, 2022

Small business pulls support for Labor IR bill

Paul Karp

Paul Karp

The Council of Small Business Organisations of Australia has joined a joint employer statement urging that Labor’s industrial relations bill not be passed in its current form.

This is significant because Cosboa gave conditional support for more options for multi-employer bargaining before the jobs and skills summit, signing up with the Australian Council of Trade Unions in a move that allowed workplace relations minister, Tony Burke, to say there was consensus for the idea.

Consensus no more.

The employers said the bill “would introduce fundamental and highly problematic changes to Australia’s bargaining system that would be detrimental to Australia”:

The Australian Chamber of Commerce and Industry; Australian Industry Group; Business Council of Australia; Minerals Council of Australia; the Cosboa; and National Farmers Federation are united in a call for the Government to either abandon or substantially amend various contentious elements of the bill relating to bargaining.

The bill, as currently framed, should not be passed by Parliament.

We jointly call on the Government to permit time for a thorough consideration of the content and implications of the Bill. This deeper consideration should include removing the provisions to allow widespread use of multi-employer bargaining backed by strike action. The Australian Parliament should remain open to making further amendments.

The legislation as drafted does not reflect broad consensus arising out of engagement with industry at the Jobs and Skills Summit or subsequent consultation. It is crucial these proposals are thoroughly examined.

The council said national employer associations were particularly concerned that the bill:

  • unjustifiably expands the scope for multi-employer bargaining;

  • fails to articulate clear parameters around where multi-employer bargaining would be available in either the supported bargaining or single-interest streams; and

  • undermines the system of enterprising bargaining that has delivered many significant benefits to Australia over several decades and currently operates effectively in many sectors.

The currently proposed framework for arbitrating bargaining disputes also risks unreasonably subjecting broad sectors of the economy, and community, to the centralised setting of terms and conditions over and above the comprehensive system of modern awards already in place.

The government is being urged to address “additional deficiencies” in the bill and to allow “detailed examination of the multi-employer bargaining elements”.

Flood warnings

Good morning! Natasha May on deck with you now.

NSW and Victoria continue to face a weeks-long flood emergency.

In NSW, the far west of the state could see flooding while in Victoria, new watch and act warnings have been issued overnight. The full list of warnings in Victoria are available here.

Gas prices ‘expected to rise again’

With energy bills front and centre in consumers’ minds, it’s also clear that they are central to thinking in Martin Place right now as well.

RBA deputy governor Michele Bullock said in a speech last night that the situation in Europe remained clouded in uncertainty, AAP reports:

While gas prices have declined lately, they are expected to rise again, particularly if there is an unusually cold winter or Russia’s war on Ukraine escalates further.

Speaking in Sydney, Bullock said high global energy prices boost Australia’s export earnings as a major coal and gas exporter – but also put upwards pressure on prices.

The government has flagged regulatory intervention in the energy markets to keep gas and electricity prices down, after the October budget revealed they are expected to soar by a combined 50% over the next two financial years.

Bullock said the bank had built a substantial hike in energy prices into its outlook for the economy but said “there is a risk we haven’t incorporated enough”:

On the other side of the coin, however, global supply chain pressures are easing quite quickly and that could turn out to be more of a dampening force than we are currently expecting.

Skyrocketing rents were another area of inflationary concern, she said.

Welcome

Good morning and welcome to the blog. I’m Martin Farrer, bringing you the early headlines before Natasha May takes control.

There are two big foreign stories overnight that we should look at to begin with.

First, the Republicans have failed to secure the resounding victories in the US midterm elections that were widely expected. Democrats did much better than predicted, leaving control of Congress in the balance. That’s also bad news for Donald Trump who reportedly fumed in his Mar-a-Lago lair as he watched several of his high-profile backers go down to defeat. Follow all the latest at our US election live blog.

The second big story is that the Kremlin has ordered its troops to withdraw from Kherson. The Ukrainian city was the first large target captured by the Russians at the beginning of their invasion and their withdrawal is a huge blow to President Vladimir Putin. You can follow those developments here.

At home, a poll shows that almost 90% of people want the government to do something about energy bills, either through export controls or a windfall profits tax, or both. It comes after Treasury secretary Steven Kennedy also backed the need for intervention in the energy sector. Interesting as well that RBA deputy governor Michele Bullock said in a speech last night that the situation in Europe remained clouded in uncertainty and that energy prices could rise rapidly again.

And we’ve also got a cracking story from the campaign trail in Victoria where it has emerged that deputy Liberal leader David Southwick has used his campaign manager and a part-time staffer in campaign ads to attract young voters – without declaring that they work for him.

Also today, Chris Dawson, the former teacher found guilty of murdering his wife Lynette 40 years ago, will be back in court to hear arguments about what sentence he should be given.



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