Cost of 2020 US Healthcare Ransomware Attacks Estimated at $21 Billion
Ransomware attacks on the healthcare industry skyrocketed in 2020. In 2020, at least 91 US healthcare organizations suffered ransomware attacks, up from 50 the previous year. 2020 also saw a major ransomware attack on the cloud software provider Blackbaud, with that attack known to have affected at least 100 US healthcare organizations. The first known ransomware attack occurred in 1989 but early forms of ransomware were not particularly sophisticated and attacks were easy to mitigate. The landscape changed in 2016 when a new breed of ransomware started to be used in attacks. These new ransomware variants use powerful encryption and delete or encrypt backup files to ensure data cannot be easily recovered without paying the ransom. Over the past 5 years ransomware has been a constant threat to the healthcare industry, with healthcare providers being increasingly targeted in recent years. Attacks now see sensitive data stolen prior to file encryption, so even if files can be recovered from backups, payment is still required to prevent the exposure or sale of stolen data. Healthcare...
207K MultiCare Health System and Woodcreek Healthcare Patients Affected by Ransomware Attack
The number of individuals affected by a ransomware attack on St. Cloud-based Netgain Technology LLC has increased, with a further 207,000 individuals now confirmed as being affected and that figure certain to rise over the coming days. Netgain Technology provides IT and technology services to several entities in the healthcare industry, including the medical practice management company Woodcreek Provider Service in Washington. Ramsey County in Minnesota was previously confirmed to have been affected by the ransomware attack. Woodcreek Provider Service provides support to pediatric clinics and urgent care centers owned and operated by MultiCare Health System. Woodcreek Provider Service was notified by Netgain about the December 3, 2020 attack and informed that the protected health information of patients and the personal information of employees and contractors were stored on servers affected by the ransomware attack, and may have been obtained by the attackers who first gained access to its systems on November 23, 2020. The Woodcreek Provider Service IT network and computer system...
Phishing Attack Impacts 135K Saint Alphonsus Health System and Saint Agnes Medical Center Patients
A phishing attack on Saint Alphonsus Health System in Boise, ID has resulted in the exposure of patient information and has also impacted patients of Saint Agnes Medical Center in Fresno, CA. Saint Alphonsus identified unusual activity in an employee’s email account on January 6, 2021. The account was immediately secured, and an investigation was conducted to determine the source and nature of the activity. Saint Alphonsus determined that the account had been accessed by an unauthorized individual on January 4, 2021, giving the individual access to the account and information contained therein for 2 days. The account was used to send phishing emails to other individuals in an attempt to obtain usernames and passwords. The employee whose credentials were compromised assisted with certain business functions that required access to protected health information, including performing billing functions for the West Region of Trinity Health, which includes Fresno. A review of all emails and attachments revealed the account contained the protected health information of certain patients....
Comment Period on Proposed HIPAA Privacy Rule Changes Extended by 45 Days
Changes to the HIPAA Rules are infrequent, so when updates are proposed they tend to include a slew of new requirements and updates to existing provisions. Before any updates are made, a request for information (RFI) is issued to allow the HHS to obtain feedback on aspects of the HIPAA Rules that are causing problems, and areas where improvements could be made. Following the RFI, a notice of proposed rulemaking is issued by the HHS followed by a comment period. The comment period is the last chance for industry stakeholder, including patients and their families, to voice their opinions about the proposed changes before they are signed into law. After issuing an RFI, the HHS’ Office for Civil Rights published a Notice of Proposed Rulemaking on December 10, 2020, along with the standard 60-day comment period from the date of publication in the Federal Register (January 21, 2021). The comment period was due to expire on March 22, 2021. Since the proposed changes include updates to the HIPAA Privacy Rule that will impact virtually everyone in the healthcare industry, the HHS has taken...
FTC Urged to Enforce Breach Notification Rule When Fertility Tracking Apps Share User Data Without Consent
On March 4, 2021, Senator Robert Menendez (D-New Jersey), and Reps. Bonnie Watson Coleman (D-New Jersey) and Mikie Sherrill (D-New Jersey) wrote a letter urging the Federal Trade Commission (FTC) to start enforcing the Health Breach Notification Rule. The Federal Trade Commission (FTC) has a mandate to protect Americans from bad actors that betray consumer trust and misuse consumers’ healthcare data and has the authority to take enforcement action but is not enforcing compliance with the Health Breach Notification Rule. The Health Breach Notification Rule was introduced as part of the American Recovery and Reinvestment Act of 2009 and requires vendors of personal health records, PHR related entities, and third-party service providers to inform consumers about unauthorized disclosures of personal health information. The Health Breach Notification Rule applies to entities not covered by the Health Insurance Portability and Accountability Act (HIPAA), and has similar provisions to the HIPAA Breach Notification Rule. While the HHS’ Office for Civil Rights has enforced compliance with...



