How Can Healthcare Organizations Protect Against Cyber Extortion
In its January 2018 Cybersecurity Newsletter, the Department of Health and Human Services’ Office for Civil Rights drew attention to the rise in extortion attempts on healthcare organizations and offered advice on how healthcare organizations can protect against cyber extortion Ransomware Attacks Have Risen Significantly Ransomware attacks on healthcare organizations have increased significantly over the past two years. Healthcare providers are heavily reliant on access to electronic data and any attack that prevents access is likely to have a major impact on patients. The inevitable disruption to services – and the cost of that disruption – makes it more likely that a ransom will be paid. The relatively high probability of a ransom being paid, coupled with the ease of attacking healthcare organizations, has made the industry an attractive target for cybercriminals. It may be more cost effective and better for patients if a ransom to be paid instead of recovering data from backups. That was certainly the view of Hancock Health. A ransom payment of 4 Bitcoin was paid to...
Partners HealthCare Notifies 2,600 Patients About May 2017 Breach of PHI
Partners HealthCare System is alerting approximately 2,600 patients that some of their protected health information has been compromised. While HIPAA covered entities have up to 60 days following the discovery of a breach to report the incident to OCR (if the breach impacts 500 or more individuals) and notify breach victims, this incident occurred and was discovered in May 2017. The delay in reporting the incident was due to difficulty identifying patient data which was mixed together with computer code. The breach was a malware incident that was discovered on May 8, 2017 when the healthcare system’s intrusion monitoring system detected suspicious activity. Prompt action was taken to block the malware and third-party forensics consultants were called in to assist with the investigation. The investigators concluded that this was not a targeted attack on Partners HealthCare, and the malware did not provide the attackers with access to its electronic medical record system. However, the investigation did reveal access to certain data was possible as a result of user activity on...
Nebraska Personal Information Bill Advances After 34-0 First Round Vote
On January 3, 2018, Senator Adam Morfield introduced a bill that aims to improve protections for Nebraska residents whose personal information is exposed as a result of a data breach. The first round of voting has seen the bill unanimously passed by Nebraska lawmakers. The bill was introduced in the wake of the massive data breach at Equifax in 2017 that saw the personal information of more than 145 Americans – and almost 700,000 Nebraskans – compromised as a result of a cyberattack. The bill – Legislative Bill 757 – seeks to make changes to the Credit Report Protection Act and the Financial Data Protection and Consumer Notification of Data Security Breach Act of 2006 to improve protections for state residents, both by helping to prevent data breaches and ensuring appropriate action is taken by the breached entity when a breach is experienced. According to Sen. Morfield, his bill “ensures that the hard-earned dollars and credit of every Nebraskan is put before crediting reporting agencies like Equifax.” Sen. Morfield has made the bill his number one priority. It...
11,200 CarePlus Health Plan Members Notified of PHI Breach
A privacy incident has been experienced by Miami, FL-based CarePlus Health Plans which has seen certain plan members’ protected health information accidentally disclosed to other plan members. Explanation of benefits statements were mailed to its plan members on January 9 and January 16, 2018, although on January 17, CarePlus became aware that some of the statements had been sent to incorrect individuals. The EoB statements included names, addresses, dates of service, providers of services, the services that had been provided, CarePlus identification numbers and CarePlus health plan names. Highly sensitive information such as Social Security numbers and financial information were not detailed on the EoB statements. CarePlus has not received any reports to suggest any of the disclosed information has been misused. The mismailing incident has been investigated by CarePlus and action has been taken to prevent any similar privacy incidents from occurring in the future. CarePlus says the mismailing incident was due to a series of programming and printing errors. Breach...
Lawsuit Over HIPAA Breach by Mail Service Survives Motion to Dismiss
A mail service – Press America, Inc – used by a pharmacy benefit manager – CVS Pharmacy – is being sued over an accidental disclosure of 41 individuals’ protected health information. CVS Pharmacy is a business associate of a health plan and is contracted to provide a mail-order pharmacy service for the health plan. The mail service is a subcontractor of CVS Pharmacy, and both entities are bound by HIPAA Rules. CVS Pharmacy signed a business associate agreement with the health plan, and Press America did likewise with CVS Pharmacy as PHI was required in order to perform the mailings. CVS Pharmacy alleges the HIPAA Privacy Rule was violated by Press America when it inadvertently disclosed PHI to unauthorized individuals due to a mismailing incident. The disclosure of some plan members’ PHI was accidental, but the privacy breach violated a performance standard in the CVS Pharmacy’s contract with the health plan. By violating the performance standard, the CVS Pharmacy was required to pay the health plan $1.8 million. A lawsuit was filed by the CVS Pharmacy seeking...



