Health-ISAC Warns of Increasing ShinyHunters Healthcare Data Theft Attacks
Health sector organizations have been warned about an increase in successful attacks by the ShinyHunters threat group. In contrast to ransomware actors, ShinyHunters conducts supply chain and identity attacks, targeting cloud SaaS and storage platforms. The group is focused on cloud-scale data exfiltration, with initial access typically achieved by voice-based social engineering (vishing) to reset passwords, MFA, or enroll new devices, according to a recent Health-ISAC cybersecurity alert. Once account access is gained, they log in to the organization’s Okta, Microsoft Entra, or Google SSO dashboard, which lists all applications the account holder has access to, such as Microsoft 365, Salesforce, Dropbox, Google Drive, and other third-party platforms. Data is rapidly exfiltrated, and victims are advised about the data theft. ShinyHunters demands a ransom payment to prevent the stolen data from being leaked on the group’s dark web data leak site. In recent months, ShinyHunters has conducted successful attacks on several healthcare and medtech companies, including the medical device...
What is the False Claims Act in Healthcare?
The False Claims Act in healthcare is a law that can be used by government agencies to take enforcement action against contractors who knowingly submit false claims, cause another to submit false claims, or knowingly make a false record or statement to get a false claim paid by a federal healthcare program. False Claims Act healthcare complaints can also be filed against contractors who fail to return Medicare and Medicaid overpayments. The False Claims Act was enacted in 1863 “to prevent and punish frauds upon the Government of the United States”. The Act was introduced with the intention of stopping dishonest contractors selling faulty supplies and equipment to Union troops during the Civil War. Significantly, the Act included a “qui tam” provision which permits private citizens to sue dishonest contractors on behalf of the government and retain a percentage of the proceeds. Despite the availability of the Act, successive Attorneys General mostly ignored it – preferring instead to pursue criminal prosecutions against dishonest contractors rather than civil prosecutions. This...
OSF Healthcare System Pays $552,250 to Settle OCR HIPAA Investigation
OSF Healthcare System and its Affiliated Covered Entities (OSF Healthcare) have agreed to pay a penalty of $552,250 to resolve alleged violations of the HIPAA Privacy, Security, and Breach Notification Rules. OSF Healthcare is a Peoria, Illinois-based integrated health system that serves patients at 174 locations in Illinois and Michigan, including 16 hospitals. On April 23, 2021, OSF Healthcare discovered that ransomware had been used to encrypt files on its network. The threat group deployed a variant of Nephilim ransomware to encrypt files and demanded payment to prevent a data leak and to obtain the keys to unlock the encrypted files. The forensic investigation determined on August 24, 2021, that the protected health information (PHI) of 53,907 patients was exfiltrated from its network, including names, driver’s license numbers, diagnosis and treatment information, prescription information, medical record numbers, provider names, dates of services, financial account information, and health insurance information. OCR was notified about the attack on October 1, 2021, and...
How to Become HIPAA Compliant
When considering how to become HIPAA compliant, one of the simplest approaches is to adopt HHS’s “Seven Fundamental Elements of an Effective Compliance Program.” This will help you address compliance challenges identified in a HIPAA risk assessment. It can also be beneficial to take advantage of HIPAA compliance software that is built around The Seven Fundamentals in order to maintain a compliant workplace. 7 Steps for HIPAA Compliance In 2011, HHS published “The Seven Fundamental Elements Of An Effective Compliance Program”. We have slightly amended it to be more relevant to HIPAA compliance in 2026. Here is a summary of the elements, which we outline in more detail in this guide. Develop policies and procedures so that day-to-day activities comply with the HIPAA Privacy Rule. Designate a privacy officer and a security officer. Implement effective training programs. Ensure channels of communication exist to report violations and breaches. Monitor compliance at floor level so poor compliance practices can be nipped in the bud. Enforce sanctions policies fairly and equally. Respond...
Former CPA Sentenced for Laundering Stolen Children’s Healthcare of Atlanta Funds
A business email compromise (BEC) attack on a vendor of Children’s Healthcare of Atlanta in 2023 resulted in $5.3 million in funds being stolen. While it is unclear if the hacker has been identified and will face justice, a former certified public accountant who conspired with the hacker has been sentenced for attempting to launder the stolen funds. The hacker compromised the email account of a vendor of Children’s Healthcare of Atlanta that provided furniture and other supplies. On or around June 13, 2023, the hacker impersonated the vendor and requested a change to the vendor’s automatic clearinghouse electronic payment instructions. When the vendor was paid, the funds were directed to a bank account belonging to former CPA and Atlanta business owner Ronald Deabler, 66. According to court documents, Deabler conspired with the hacker to distribute the stolen funds in exchange for a commission. Deabler opened a second account and tried to transfer the funds; however, the bank would not transfer the entire amount, and only around $1 million of the funds were transferred. Around $3.5...



