Texas Man Sentenced to 48 Months for Fraud Scheme Involving Theft of Electronic Health Records
A Texas man has been sentenced to 48 months in prison after pleading guilty to one count of conspiracy to obtain information from a protected computer. Demetrius Cervantes of McKinney, TX, was one of three defendants indicted over the theft and misuse of protected health information. Prosecutors alleged the defendants unlawfully gained access to an unnamed healthcare provider’s EHR system, stole information, then repackaged that data to create false and fraudulent physician orders, which were sold to durable medical equipment providers and contractors. The defendants are alleged to have obtained $1.4 million from the sale of the data, which they subsequently used to purchase high value items such as vehicles and jet skis. “Today’s sentence sends the message that the theft of protected health information, the fabrication of physicians’ orders, and the sale of prescriptions will not be tolerated in the Eastern District of Texas,” said Acting U.S. Attorney Nicholas J. Ganjei. “This office will continue to pursue those who place profits over patients and...
Wisconsin Dermatology Practice Reports Data Breach Affecting 2.41 Million Individuals
Manitowoc, WI-based Forefront Management, LLC and Forefront Dermatology, S.C. discovered on June 4, 2021 that unauthorized individuals had gained access to its network and potentially viewed private and confidential employee and patient information. The affected systems were immediately taken offline to prevent further unauthorized access and an investigation was launched to determine the nature and scope of the attack. On June 24, 2021, Forefront determined that certain files stored on its network had been accessed and potentially obtained which contained the personal information of a limited number of Forefront employees, including their names and Social Security numbers. The investigation revealed its network was first breached on May 28, 2021 and access remained possible until June 4, 2021. During the course of the investigation, Forefront determined the unauthorized individual also accessed files that included the personal and protected health information of a limited number of current and former Forefront patients. Patient information potentially compromised in the attack...
Kaseya Security Update Addresses Flaws Exploited in KSA Ransomware Attack
Kaseya has announced a security update has been released for the Kaseya KSA remote management and monitoring software solution to fix the zero-day vulnerabilities recently exploited by the REvil ransomware gang in attacks on its customers and their clients. The vulnerabilities exploited in the attack were part of a batch of seven flaws that were reported to Kaseya in April 2021 by the Dutch Institute for Vulnerability Disclosure (DIVD). Kaseya had developed patches to correct four of the seven vulnerabilities in its Virtual System Administrator solution and released these as part of its April and May security updates; however, before patches could be released for the remaining three vulnerabilities, one or more of them were exploited by an REvil ransomware affiliate. The attack affected approximately 60 customers who had deployed the Kaseya VSA on-premises, many of which were managed service providers (MSPs). The REvil ransomware gang gained access to their servers, encrypted them, and pushed their ransomware out to approximately 1,500 business clients of those companies. Following...
Coastal Family Health Center Cyberattack Affects 62,000 Patients
Coastal Family Health Center (CFHC), the fourth largest community health center in Mississippi, has started notifying patients about a May 13, 2021 cyberattack that involved some of their protected health information. CFHC said hackers attempted to shut down its computer operations; however, that attempt failed and CFHC was able to continue treating patients and providing services to the community. An investigation was immediately launched into the incident to determine how the attack occurred and whether any sensitive patient information was accessed by the hackers. On June 4, 2021 the investigation revealed some files accessed by the attackers contained the protected health information of patients, including names, addresses, Social Security numbers, health insurance information, and health and treatment information. Independent cybersecurity professionals were engaged to assist with improving the security of its systems and policies and procedures have been changed to prevent further breaches in the future. After determining current mailing addresses, notification letters were...
Kroger Proposes $5 Million Settlement to Resolve Data Breach Lawsuits
The pharmacy and supermarket chain Kroger has proposed a $5 million settlement to resolve lawsuits filed by victims of data breach that exposed their personal and protected health information. Kroger was one of many victims of a cyberattack on Accellion’s File Transfer Appliance (FTA) in December 2020. The Accellion FTA is a legacy solution used to transfer files too large to be sent via email. Hackers exploited several zero-day vulnerabilities in the solution and gained access to the data of more than 100 companies. While ransomware was not used, the attack was linked to the Clop ransomware gang which threatened to publish the exfiltrated data. Individual companies were sent demands for payment to prevent the exposure of their stolen data. Kroger was notified about the breach on January 23, 2021 and received a ransom demand from the attackers on February 2. The FBI was notified, and Kroger paid the ransom on February 18, 2021. The attackers returned the stolen data the following day and provided a video demonstrating the stolen data had been deleted. Approximately 1% of Kroger...



