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The group allegedly responsible for Medibank's "cyber incident" has threatened to sell customer data unless the insurance company pays a ransom.

Medibank said it received messages from a group wishing to negotiate with the provider "regarding their alleged removal of customer data".

"This is a new development and Medibank understands this news will cause concerns for customers and the protection of their data remains our priority," Medibank said in a statement.

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"Medibank is working urgently to establish if the claim is true, although based on our ongoing forensic investigation we are treating the matter seriously at this time."

Medibank remains operational and said no ransomware attacks have happened yet.

Today the health insurer halted trading on the Australian Stock Exchange as a result of the threat.

"Medibank has entered into a trading halt, to ensure that it meets its continuous disclosure obligations. The trading halt will continue until further notice," Medibank said.

Medibank shares last traded at $3.50.

It is the second time in a week the provider has been forced to stop trading.

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The insurer added it is working with cyber security firms and the Australian Cyber Security Centre to get to the bottom of the cyber incident.

"I apologise and understand this latest distressing update will concern our customers," CEO David Koczkar said.

"We have always said that we will prioritise responding to this matter as transparently as possible.

"Our team has been working around the clock since we first discovered the unusual activity on our systems, and we will not stop doing that now.

"We will continue to take decisive action to protect Medibank customers, our people and other stakeholders."

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https://twitter.com/_rockrit/status/1582610550110179328

Medibank announced last week it had been hit by a "cyber incident" but reassured customers their personal data remained safe.

No such reassurance was provided by the health insurer to customers today.

The incident comes just weeks after the major Optus hack which exposed at least 2.1 million personal identification numbers.

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A prison officer is on trial for the murder of a shackled inmate shot 11 seconds into an attempted escape.

Officer A, as he's known publicly for legal reasons, has pleaded not guilty to murdering Dwayne Johnstone outside Lismore Base Hospital on March 15, 2019.

Johnstone, 43, was being escorted out of the hospital when he shoved another correctional services officer and ran across the road towards a closed doctors' surgery, a Sydney jury was told.

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Albeit with his wrists and ankles restrained, the solid, 170-centimetre-tall man moved "at some pace", the jury was told.

As the shoved colleague gave chase, Officer A drew his work-issued revolver, used words to the effect of "Corrections Officer – stop or I'll shoot" and fired three times at Johnstone.

The last round struck Johnstone in the back.

"All this is happening in 11 seconds," crown prosecutor Ken McKay SC told the NSW Supreme Court in his opening address on Wednesday.

The jury is expected to view footage of the incident, captured on the hospital's CCTV system, and of Officer A's police interview the next day.

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In that interview, McKay said the officer admitted aiming his shots at the centre of mass of Johnstone's body.

If the jury accepts that admission, it would make up one element of the offence of murder, McKay said.

The Crown also needs to prove beyond reasonable doubt that Officer A intended to cause really serious injury, or had a "full realisation that death was a probable consequence" of shooting at Johnstone.

A third element requires the jury to be satisfied the action was without lawful cause or excuse, under the regulations determining when corrections officers could use their weapons.

"The Crown has to prove beyond reasonable doubt the accused did not believe it was necessary, or if was necessary, that belief was not based on reasonable grounds," McKay said.

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The shooting occurred in light rain and relative darkness and as Johnstone ran up a ramp to the closed doctors' surgery.

"(Johnstone was) posing no risk to any person at the time he was shot," McKay said he expected the evidence to show.

Johnstone had been arrested the day before and charged by Lismore for alleged assault and possession of a Taser. He was taken to hospital after facing court and being remanded in custody.

The trial continues.

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Hundreds of people on the New South WalesVictoria border are preparing for a "once in a lifetime" flooding event as the swollen Murray River teeters on breaking its banks.

Border communities have been rallying together to build the three-kilometre-long and two-metre-high levee designed to protect thousands of homes from flooding when the Murray River peaks later this week.

Echuca resident Nick told Today his home has just missed out on being included in the area protected by the levee, leaving him "gutted".

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He can see the levee from his doorstep.

"To get the news that the shire were putting a levee bank in was great, but to find out they were sacrificing us was totally gutting us to be honest," he said.

Nick sandbagged his home on Sunday while his wife and children were out sandbagging in other parts of the community.

"If we'd have left it till yesterday we'd have got (no sandbags) because the bank went up yesterday. It is devastating," he said.

"My wife and kids sandbagged all weekend for the community.

"We're a pretty tight-knit community here in Echuca so they spent all weekend helping the rest of the community and then the shire went and put that bank up and basically we feel like we're not part of the community anymore.

"We're not worth saving. It hurts, really hurts."

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Nick said he and his family would stay in their home until the water arrived, when they would leave in their boat.

"We're just riding the roller coaster. We're just waiting for the water. It's coming, we're going to get it, it's just a matter of when now," he said.

Nick has said residents were given "zero say" about who was to be protected by a town meeting, which was attended by 300 to 400 people.

"They took five questions after they told us the devastating news. Two of those questions were answered with, 'I can't answer that. Thanks for coming, see you later'," he said.

"Unfortunately we're the sacrificial lambs out this side and we'll have to wait and see what happens to us."

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At today's town meeting in Echuca, officials said the choice of levee position was "the best choice" at the time.

Even year 12 students swapped muck-up day celebrations to sandbag the Echuca Village.

Meanwhile, on the other side of the border, Moama is expected to be the hardest-hit and residents are sandbagging or evacuating ahead of the nervous wait for water levels to surge.

The worst of the flooding is predicted for Friday or Saturday.

"It's a wait and see game to see where the rain falls and how the rivers response," Emergency Services Minister Steph Cooke said.

A 300-strong team of SES volunteers is mobilising to help evacuate people and protect properties, along with over 100 defence force personnel. 

"We got heaps of people on the go… it's flat out, it's crazy," a resident told 9News.

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A holiday park in Moama is expected to be the first to feel the pinch.

"As you can see, we're pretty much in the firing line here," the owners said.

"It doesn't take much when the water goes up to cover massive kilometres of farmland and communities," SES commissioner Carlee York said.

An RFS base camp is being set up at Deniliquin, the closest dry area, which is almost 70 kilometres away from the flood zone. 

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