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The HIPAA Journal is the leading provider of HIPAA training, news, regulatory updates, and independent compliance advice.

More Than 114,000 Patients Affected by Wilmington Surgical Associates Ransomware Attack

In October 2020, the NetWalker ransomware gang claimed responsibility for a ransomware attack on the North Carolina-based surgical center, Wilmington Surgical Associates. The gang claimed to have stolen around 13GB of data prior to deploying NetWalker ransomware and encrypting files. The stolen batch of data included thousands of documents containing sensitive information.

HIPAA Journal has not yet been able to obtain a copy of the breach notification; however, the ransomware attack has now appeared on the HHS’ Office for Civil Rights breach portal and shows the PHI of 114,834 patients was compromised in the attack.

The NetWalker ransomware gang targets healthcare providers and the gang has stepped up its attacks in 2020. The gang was behind the ransomware attack on the University of California San Francisco and stole sensitive and valuable research data. The University felt it had no alternative other than to pay the $1.14 million ransom to recover the encrypted data.

Other healthcare providers attacked with NetWalker ransomware this year include the Crozer-Keystone Health System in Philadelphia, the Champaign-Urbana Public Health District in Illinois, and Brno University Hospital in the Czech Republic. The group also targets universities and was behind the 2020 ransomware attacks on Michigan State University and Columbia College of Chicago

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According to a report released by the cybersecurity firm McAfee in August 2020, the NetWalker gang had been paid at least $29 million in ransom payments since March 2020, making it one of the most successful ransomware-as-a-service operations.

The group is known to attack large companies and high value targets, and this year started recruiting affiliates specialized in conducting targeted attacks on large enterprises, especially attacks on firewalls, Virtual Private Networks, web application interfaces, and Remote Desktop Protocol connections. As is the case with other manual ransomware threat groups, data is stolen prior to encryption and is released publicly on dark net sites if the ransom is not paid.

The increase in activity of the gang prompted the FBI to issue a flash alert in July 2020 warning healthcare organizations, educational institutions, private sector companies, and government agencies about the increased risk of attack.

Author: Steve Alder is the editor-in-chief of The HIPAA Journal. Steve is responsible for editorial policy regarding the topics covered in The HIPAA Journal. He is a specialist on healthcare industry legal and regulatory affairs, and has 10 years of experience writing about HIPAA and other related legal topics. Steve has developed a deep understanding of regulatory issues surrounding the use of information technology in the healthcare industry and has written hundreds of articles on HIPAA-related topics. Steve shapes the editorial policy of The HIPAA Journal, ensuring its comprehensive coverage of critical topics. Steve Alder is considered an authority in the healthcare industry on HIPAA. The HIPAA Journal has evolved into the leading independent authority on HIPAA under Steve’s editorial leadership. Steve manages a team of writers and is responsible for the factual and legal accuracy of all content published on The HIPAA Journal. Steve holds a Bachelor’s of Science degree from the University of Liverpool. You can connect with Steve via LinkedIn or email via stevealder(at)hipaajournal.com

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