The Update: Australian Clinical Labs (ACL) has formally agreed to a $5.8 million penalty to resolve Federal Court proceedings initiated by the Office of the Australian Information Commissioner (OAIC). The action follows a 2022 data breach at Medlab Pathology, which ACL had acquired months earlier.
The breach, attributed to the Quantum ransomware group, resulted in the theft of 86 gigabytes of data, compromising the personal and medical information of approximately 223,000 Australians. Exposed data included health records, personal identification, and credit card and Medicare details.
ACL first reported the incident in October 2022 after being notified by the Australian Cyber Security Centre (ACSC) that the stolen data had been published on the dark web. The company has also agreed to contribute $400,000 towards the OAIC’s legal costs. The proposed penalty is now awaiting final approval from the Federal Court.
“ACL would like to again apologise to the Medlab customers and employees that were impacted as a result of this cyber attack. While the Medlab cyber attack was isolated to the newly acquired Medlab business, we remain steadfast in our commitment to the protection of patient data, data governance and continuously improving our cyber security systems and controls,” - ACL said in a 29 September statement. An image of the full statement is included further down this page.
Why it Matters: This substantial penalty highlights the increasing financial consequences for organisations that fail to protect sensitive data. The case demonstrates the OAIC’s willingness to take significant enforcement action, setting a precedent for future data breaches in Australia.
For the healthcare sector, it is a stark reminder of the immense responsibility that comes with holding sensitive patient information and the critical need for robust cyber security measures, particularly during mergers and acquisitions. The exposure of detailed health and financial information creates long-term risks for the 223,000 affected individuals, including potential identity theft and targeted fraud.