25% off all training courses Offer ends May 29, 2026
View HIPAA Courses
25% off all training courses
View HIPAA Courses
Offer ends May 29, 2026

The HIPAA Journal is the leading provider of HIPAA training, news, regulatory updates, and independent compliance advice.

73 Email Accounts Compromised in Major Phishing Attack on NCH Healthcare System

The importance of security awareness training for healthcare employees has been highlighted by a recent phishing attack on Bonita Springs, FL-based NCH Healthcare System.

The attack was detected on June 14, 2019 when suspicious email activity was identified in relation to its payroll system. The investigation revealed a staggering 73 employees had responded to phishing emails and disclosed their account credentials to the scammers.

It is common for healthcare organizations to identify an email account breach and later discover the attack was more extensive than originally thought. Oftentimes, several emails accounts are discovered to have been compromised, often as a result of lateral phishing – the use of one compromised email account to send phishing emails to other individuals in the organization. However, a breach as extensive as this is fortunately rare.

NCH Healthcare system is still investigating the attack and is being assisted by a third-party computer forensics firm. The initial findings of the investigation suggest the attackers were not concerned with obtaining PHI, instead the goal of the attackers appears to have been to redirect payroll payments.

Get The FREE
HIPAA Compliance Checklist

Immediate Delivery of Checklist Link To Your Email Address

Please Enter Correct Email Address

Your Privacy Respected

HIPAA Journal Privacy Policy

The forensic team confirmed on July 2, 2019 that some patient information was exposed as a result of the attack, but as the investigation is still ongoing, at this stage no confirmation has been issued on the types of information that were potentially compromised. Affected individuals will be notified accordingly when the investigation has concluded.

That process is likely to take some time given the extent of the breach and the number of emails in the compromised accounts that need to be checked to determine whether they contain protected health information.

NCH compliance officer Kelly Daly said the security measures put in place prior to the phishing attack limited the harm caused. Without those measures, more of the company’s 5,000 employees could also have fallen for the scam.

No reports have been received to date that suggest patients’ PHI has been misused, but patients are being advised to monitor their explanation of benefits statements and accounts for signs of identity theft and other misuses of their personal information.

The breach report submitted to the HHS’ Office for Civil Rights on February 27, 2019 indicates 63,581 individuals were affected by the breach.

Author: Steve Alder is the editor-in-chief of The HIPAA Journal. Steve is responsible for editorial policy regarding the topics covered in The HIPAA Journal. He is a specialist on healthcare industry legal and regulatory affairs, and has 10 years of experience writing about HIPAA and other related legal topics. Steve has developed a deep understanding of regulatory issues surrounding the use of information technology in the healthcare industry and has written hundreds of articles on HIPAA-related topics. Steve shapes the editorial policy of The HIPAA Journal, ensuring its comprehensive coverage of critical topics. Steve Alder is considered an authority in the healthcare industry on HIPAA. The HIPAA Journal has evolved into the leading independent authority on HIPAA under Steve’s editorial leadership. Steve manages a team of writers and is responsible for the factual and legal accuracy of all content published on The HIPAA Journal. Steve holds a Bachelor’s of Science degree from the University of Liverpool. You can connect with Steve via LinkedIn or email via stevealder(at)hipaajournal.com

x

Prevent HIPAA Email Violations

Avoid the common misunderstandings and implementation errors relating to HIPAA email.

Learn more