In June 2024, Globe Life, a major American insurance company, faced a cybersecurity breach that exposed sensitive customer data to cybercriminals. Hackers infiltrated one of the company's web portals, gaining access to private information and later attempting to extort the firm in exchange for not releasing the stolen data.
Customer data exposed in cyberattack
The breach was first identified in mid-June 2024, and Globe Life promptly reported the incident, stating that an unauthorised third party accessed its customer data. In a recent 8-K form submitted to the U.S. Securities and Exchange Commission (SEC), the company revealed that at least 5,000 customers were affected. However, this number could increase as the investigation into the incident continues.
The hackers obtained personal information such as names, email addresses, phone numbers, and postal addresses. Sometimes, they accessed Social Security numbers, health-related details, and other policy information. According to Globe Life, there is no evidence that banking or credit card details were compromised, offering some reassurance to its customers.
The breach involved data from one of Globe Life's subsidiaries, American Income Life Insurance Company. This data included personally identifiable information that could be valuable for identity theft or other malicious activities. While the full extent of the stolen data is still under investigation, the company acknowledged that the hackers claim to have additional information. These claims are yet to be verified.
It is not a ransomware attack, but hackers demand money
Unlike many high-profile cyberattacks, this incident did not involve a ransomware attack. The hackers did not encrypt Globe Life's systems or disrupt their operations. However, they sought financial gain by demanding money from the company in exchange for withholding the stolen data.
According to the 8-K filing, Globe Life received communications from the hackers, who tried to extort money by threatening to release the sensitive information held by the company and its independent agents. While Globe Life did not confirm whether it had paid the ransom, it is believed that the company chose not to comply with the demand. Instead, Globe Life brought in external cybersecurity experts to assess the situation and notified law enforcement authorities to handle the criminal aspect of the case.
Globe Life takes action to protect affected customers
Following the breach, Globe Life assured its customers it was taking steps to notify those affected by the incident. The company also promised protection and support to minimise the potential impact on individuals whose personal information was exposed.
So far, there is no evidence that the stolen data has been misused, but the situation remains under close scrutiny. Globe Life continues to work with cybersecurity experts to ensure the breach is contained and that customer data is safeguarded moving forward.
With cyberattacks becoming increasingly common, companies like Globe Life face growing pressure to bolster their defences and safeguard sensitive information. This incident serves as a reminder of the importance of robust cybersecurity measures, especially for firms handling vast amounts of personal and financial data.
