$350,000 Settlement Reached to Resolve Saint Francis Healthcare Data Breach Lawsuit
A $350,000 settlement has been reached between Saint Francis Healthcare System and patients impacted by a September 2019 ransomware attack on Ferguson Medical Group (FMG). FMG was acquired by Saint Francis after a cyberattack that rendered data, including electronic medical records, on FMG systems inaccessible. The decision was taken to restore the encrypted data from backups rather than pay the ransom, and while patient data and other files were recovered, it was not possible to recover all data encrypted in the attack. FMG was unable to restore a batch of data related to medical services provided to patients between September 20, 2018 and December 31, 2018 which has been permanently lost. FMG announced the incident impacted around 107,000 patients, and those individuals were offered complimentary membership to credit monitoring services. A class action lawsuit was filed against Saint Francis Healthcare in January 2020 in the U.S. District Court of Eastern Missouri which alleged negligence per se, breach of express and implied contracts, invasion of privacy, and violations of the...
Office for Civil Rights Announces 10th HIPAA Fine Under Right of Access Initiative
The U.S. Department of Health and Human Services’ Office for Civil Rights has announced its 10th financial penalty under its HIPAA Right of Access enforcement initiative. California-based Riverside Psychiatric Medical Group has agreed to pay a financial penalty of $25,000 to resolve a potential HIPAA Right of Access violation and will adopt a corrective action plan to ensure compliance with this important provision of the HIPAA Privacy Rule. The HHS will monitor Riverside Psychiatric Medical Group for 2 years to ensure continued compliance. OCR launched an investigation following receipt of a complaint from a patient in March 2019 alleging Riverside Psychiatric Medical Group failed to provide a copy of her medical records after she had made several requests, with the first request made in February 2019. OCR contacted Riverside Psychiatric Medical Group and provided technical assistance on how the practice could comply with the HIPAA Right of Access and the case was closed. A month later, in April 2019, a second complaint was received from the patient saying she had still not been...
Half of Ransomware Attacks Now Involve the Theft of Data Prior to Encryption
Coveware has released its Quarterly Ransomware report for Q3, 2020 highlighting the latest ransomware attack trends. The report confirms that data exfiltration prior to the use of ransomware continues to be a popular tactic, with around half of all ransomware attacks involving data theft. Attacks involving the theft of data doubled in Q3, 2020. In cases where data are stolen prior to file encryption, victims are told that if they do not pay the ransom demand their data will be leaked online or sold to pressure victims into paying, but ransomware victims should carefully consider whether or not to pay. There are no guarantees that paying the ransom will prevent publication of stolen data. Ransomware Gangs Renege on Promises to Delete Data The Maze ransomware gang started the double-extortion trend in 2019 and many ransomware operators soon followed suit. In some cases, two ransomware demands are issued; one to return or delete stolen data and the other for the keys to unlock the encrypted files, The operators of the AKO and Ranzy ransomware variants have adopted this dual ransom...
Healthcare Providers Affected by Email Account Breach at Payment Processing Vendor
Lafayette, LA-based Provider Health Services, Paragould-based Arkansas Methodist Medical Center, and Miami, FL-based lntelliRad Imaging have announced they have been affected by an email security breach at one of their business associates. All three entities have a lockbox service with IBERIABANK to collect and process payments. IBERIABANK uses Technology Management Resources, Inc. (TMR) as a third‐party lockbox service provider for capturing and processing payment data for the lockbox. TMR discovered on July 3, 2020 that one of its employee’s email accounts had been accessed by an unauthorized individual, and that individual may have accessed or exfiltrated images containing protected health information. TMR notified affected customers on August 21, 2020 and confirmed that the threat actor potentially viewed images of checks and other images that contained protected health information within the TMR’s iRemit application. The unauthorized access occurred between August 5, 2018 and May 31, 2020, with most of the activity occurring between February 2020 and May 2020. Provider Health...
Blackbaud SEC Filing Provides Further Information on Data Breach and Mitigation Costs
The number of victims reporting being impacted by the Blackbaud ransomware attack and data breach has continued to grow over the past few weeks, with the Department of Health and Human Services’ Office for Civil Rights breach portal continuing to list healthcare victims. Recent additions include Moffitt Cancer Center, OSF HealthCare System, and Geisinger, with those three entities reporting the incident as affecting a total of 276,600 individuals. While the total number of victims has not been disclosed by Blackbaud, at least 250 healthcare organizations, non-profits, and educational institutions are known to have been impacted, with healthcare organizations reporting the breach as affecting more than 10 million individuals. Unsurprisingly given the breach costs incurred by organizations and the number of individuals whose personal information has been exposed, Blackbaud is facing many class action lawsuits. At least 23 proposed class action lawsuits have been filed so far in the United States and Canada, according to its 2020 Q3 Quarterly Report filed with the U.S. Securities and...



