$3.2 Million HIPAA Civil Monetary Penalty for Children’s Medical Center of Dallas
The Department of Health and Human Services’ Office for Civil Rights (OCR) has announced that Children’s Medical Center of Dallas has paid a civil monetary penalty of $3.2 million to resolve multiple HIPAA violations spanning several years. It is relatively rare for a HIPAA civil monetary penalty to be paid by a HIPAA-covered entity to resolve HIPAA violations discovered during OCR data breach investigations. In the vast majority of cases when serious violations of the Health Insurance Portability and Accountability Act are discovered by OCR investigators, the covered entity in question enters into a voluntary settlement with OCR. Typically, this sees the covered entity pay a lower amount to OCR to resolve the HIPAA violations. OCR attempted to resolve the matter via informal means between November 6, 2015, and August 30, 2016, before issuing a Notice of Proposed Determination on September 30, 2016. In the Notice of Proposed Determination, OCR explained that Children’s Medical Center of Dallas could file a request for a hearing, although no request was received. Consequently,...
IoT and Mobile Application Vulnerabilities Not Being Adequately Addressed
Organizations around the world are taking advantage of IoT and mobile applications to improve efficiency, yet too little is being done to ensure the applications are secure. A key lesson from a recent Ponemon Institute survey is application usability and not just data security should always be factored into application development and cloud cost management or users will resist security measures and find workarounds. Organizations can benefit greatly from IoT and mobile technology, yet it is all too easy for major security risks to be introduced. Hackers are well aware of vulnerabilities in mobile and IoT applications and leverage those vulnerabilities to gain access to networks and sensitive data. IoT infrastructure is vulnerable to attack, although the greatest risks are introduced by embedded software in gateways and the cloud. Many IT security practitioners are well aware of the security risks that can potentially be introduced, yet according to a recent survey conducted by the Ponemon Institute, little is being done to mitigate risk. 593 IT and IT security professionals were...
eHealth Email Spoofing Attack Sees Employee W-2 Information Disclosed
In the past few days, two email spoofing attacks have been reported by healthcare organizations that have resulted in the W-2 information of employees being sent to cybercriminals. Tax season phishing scams are to be expected at this time of year. Cybercriminals target HR and payroll employees and try to fool them into sending the W-2 information of employees via email. The scams are convincing. A casual glance at the address of the sender of the email will reveal nothing untoward. The emails appear to have been sent from other employees who have a legitimate need for the information. The latest healthcare organization to report being duped by one of these scams is eHealthinsurance. An eHealth employee responded to a phishing email on January 20, 2017 after believing it had been sent from another eHealth employee. While many of these scams involve emails being sent from compromised company email accounts, in this case the request came from a spoofed email account. The employee sent a file by return that contained employees’ W-2 tax forms. Data passed on to the scammer included...
OIG: 16% Increase in Security Gaps in Medicare Contractors’ Information Security Programs
An annual review of Medicare administrative contractors’ (MACs) information security programs has shown them to be ‘adequate in scope and sufficiency’, although a number of security gaps were found to exist. The Social Security Act requires each MAC to have its information security program evaluated on an annual basis by an independent assessor. Each MAC must have the eight major requirements of the Federal Information Security Management Act of 2002 (FISMA) evaluated, in addition to the information security controls of a subset of systems. The Department of Health and Human Services’ Office of Inspector General (OIG) is required to submit a report of the annual MAC evaluations to congress. The Centers for Medicare & Medicaid Services (CMS) contracted with PricewaterhouseCoopers (PwC) for this year’s evaluations. The OIG report to congress shows a total of 149 security gaps were discovered to exist in the financial year 2015; a marked increase from the previous year. In 2014, the same 9 MACs were evaluated and 16% fewer security gaps were discovered. A security gap is defined...
Tax Season Triggers Wave of W-2 Business Email Compromise Attacks
Campbell County Health is the latest victim of a W-2 business email compromise attack, which has resulted in the tax information of 1,457 hospital employees being disclosed to a scammer. The Gillette, WY-based healthcare system discovered Wednesday that an employee had responded to an email request for the W-2 form data of hospital employees. As is common in these scams, the attacker impersonated a hospital executive and requested W-2 information for all employees who had taxable earnings in 2016. A 66-year old hospital worker responded to the email and sent the information as requested. However, rather than being sent to the hospital executive, the data was sent to the scammer. Andy Fitzgerald, CEO of Campbell County Health issued a statement confirming “no protected health information for our employees or our patients were released in this incident.” The breach was limited to W-2 data. All affected employees have now been contacted and have been offered identity theft protection services through a leading credit monitoring and identity theft protection company. Law enforcement...



