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

Cierant Corporation Announces 232,500-Record Data Breach

Cierant Corporation, a Danbury, CT-based distributed marketing software and services company, has recently disclosed a data incident that has affected 232,506 individuals. The data breach was reported separately by its client, Blue Cross and Blue Shield of Massachusetts (BCBSM), as affecting 4,855 of its members.

Cierant explained that it detected a vulnerability in the Cleo VL Trader managed file transfer solution on December 10, 2024. An industry-leading cybersecurity firm was engaged to assist with the investigation and confirmed that the vulnerability had been exploited by a threat actor, resulting in unauthorized access to Cierant’s systems. Cierant did not state what vulnerability was exploited or initial access.

Two vulnerabilities affecting Cleo products were publicly disclosed in December 2024, around the time that the data breach occurred: CVE-2024-50623 and CVE-2024-55956. The first vulnerability allowed files to be uploaded and downloaded from Cleo software. Malicious files could be uploaded that could allow remote code execution. The second vulnerability allows Bash and PowerShell commands to be run on the host system. Exploitation activity in Cleo products has been linked with the Clop threat group, which frequently targets vulnerabilities in file transfer solutions. Clop’s previous mass exploitation campaigns include zero-day vulnerabilities in Progress Software’s MoveIT Transfer solution and Fortra’s GoAnywhere MFT solution.

Cierant’s review of the affected systems confirmed that they contained information provided by its clients in connection with the services it provides. The types of information involved vary from individual to individual and may include names, addresses, dates of birth, treatment-related dates, generic descriptions of services received, provider names, medical record numbers, health plan beneficiary numbers, claims numbers, and/or plan member account numbers and premium information.

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Cierant Corporation issued notifications to 232,506 individuals. It is unclear if any clients other than BCBSM chose to issue their own notifications or if any clients not subject to the HIPAA notification requirements were affected.

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

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