Healthcare Cybersecurity

Bipartisan Healthcare Cybersecurity Act Introduced in House and Senate

Last week, a pair of bipartisan bills were introduced in the House of Representatives and Senate that seek to enhance the cybersecurity of the healthcare and public health (HPH) sector by improving coordination at the federal level to ensure that government agencies can respond quickly and efficiently to cyberattacks on HPH sector entities.

Healthcare cyberattacks have increased significantly in recent years, with more than 700 data breaches affecting 500 or more individuals reported to the HHS’ Office for Civil Rights in each of the past four years. In the past couple of years, a huge volume of healthcare records has been breached. In 2023, the protected health information of more than 172 million individuals was exposed or impermissibly disclosed in healthcare data breaches, and 278 million individuals were affected by healthcare data breaches in 2024.

In 2024, a ransomware group breached the systems of Change Healthcare, stole the records of an estimated 190 million individuals, and used ransomware to encrypt files. The attack caused massive disruption to the revenue cycles of healthcare providers across the country due to the prolonged outage of Change Healthcare’s systems, considerable disruption to patient care across the country, and the stolen data was leaked on the dark web.

The Healthcare Cybersecurity Act of 2025 was introduced by Congressman Jason Crow (D-CO), who was joined in introducing the legislation by Congressman Brian Fitzpatrick (R-PA). A companion bill was introduced in the Senate by Senators Jacky Rosen (D-NV) and Todd Young (R-IN). Congressman Crow previously introduced the Healthcare Cybersecurity Act in the 117th and 118th Congresses. “As technology advances, we must do more to protect Americans’ sensitive data,” said Congressman Crow. “That’s why I’m leading bipartisan legislation to strengthen our defenses and protect families from cyberattackers.”

If passed, the Cybersecurity and Infrastructure Security Agency (CISA) and the U.S. Department of Health and Human Services (HHS) would be required to collaborate on improving HPH sector cybersecurity. A liaison would be created between the two agencies to coordinate the responses to cyberattacks, and the act would authorize cybersecurity training for all relevant personnel. The bill also requires CISA and the HHS to conduct a study to identify the specific risks faced by the HPH sector.

“Cyberattacks on our healthcare system endanger more than data—they put lives at risk. I’ve long worked to strengthen our nation’s cyber defenses where Americans are most exposed, from small businesses to hospitals. This bipartisan bill takes direct, strategic action: empowering CISA and HHS to coordinate real-time threat sharing, expanding cybersecurity training for providers, and establishing a dedicated liaison to bolster response. We’re not just responding to attacks—we’re building the infrastructure to prevent them, protect patient privacy, and defend a vital pillar of our national security,” said Congressman Fitzpatrick.

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High Severity Vulnerability Identified in MicroDicom DICOM Viewer

A high-severity vulnerability has been identified in the MicroDicom DICOM Viewer, a popular free-to-use software for viewing and manipulating DICOM medical images.

The vulnerability can be exploited remotely in a low complexity attack, and successful exploitation can allow the execution of arbitrary code on vulnerable installations of DICOM Viewer; however, user interaction is required to exploit the vulnerability. A threat actor would need to convince a user to open a malicious DICOM file locally or visit a specially crafted malicious web page, for example, through social engineering or phishing.

The vulnerability affects DICOM Viewer version 2025.2 (Build 8154) and prior versions and is tracked as CVE-2025-5943.  The vulnerability is an out-of-bounds write issue, where it is possible to write to memory outside the bounds of the intended buffer and execute arbitrary code. The vulnerability has been assigned a CVSS v4 base score of 8.6 out of 10 and a CVSS v3.1 base score of 8.8 out of 10. While there have been no known cases of the vulnerability being exploited in the wild at the time of disclosure, prompt patching is recommended. The vulnerability has been fixed in version 2025.3 and later versions.

The vulnerability was identified by independent security researcher Michael Heinzl, who reported the vulnerability to the U.S. Cybersecurity and Infrastructure Agency (CISA). The latest announcement follows a May 2025 disclosure of two high-severity vulnerabilities, a February 2025 disclosure of a medium-severity vulnerability that can be exploited in a machine-in-the-middle (MitM) attack, and four high-severity vulnerabilities identified in 2024 and disclosed in March and June last year.

Since vulnerabilities are frequently discovered, it is advisable to locate DICOM Viewer behind a firewall, to isolate it from business networks, and if remote access is required, to use a secure method of connection such as a Virtual Private Network (VPN) and ensure that the VPN is kept up to date.

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Healthcare Organizations Take 3.7 Months To Announce Ransomware Data Breaches

A recent data analysis by Comparitech has revealed that the average time for a U.S. healthcare organization to report a ransomware attack is 3.7 months, the shortest time out of all industries represented in the study. Across all industries, the average time to report a ransomware attack in 2023 was 5.1 months, a considerable increase from the average of 2.1 months in 2018.

In 2024, ransomware-related data breaches took an average of 3.7 months to report, although it is too early to obtain reliable reporting data, as ransomware victims are still reporting ransomware-related data breaches from last year.

Comparitech’s researchers analyzed data from 2,600 U.S. ransomware attacks since 2018. Over the entire period of study, the average time to report a data breach following a ransomware attack was 4.1 months. The legal sector delayed reporting data breaches for the longest time, taking an average of 6.4 months to report the data breach.

While healthcare had the shortest breach reporting times, one healthcare entity had an exceptionally long delay between the date of the attack and the issuing of notifications. Ventura Orthopedics experienced a ransomware attack in July 2020, yet it took 38 months for notification letters to be issued, which were not sent until September 2023.  Another healthcare entity had an exceptionally long delay before notifications were issued. It took two years from the date of the attack for Westend Dental to issue notification letters, earning the company a $350,000 financial penalty.

The reporting time is no doubt influenced by federal and state laws. In healthcare, the Breach Notification Rule of the Health Insurance Portability and Accountability Act (HIPAA) requires regulated entities to report a data breach within 60 days of the date of discovery, and if the total number of affected individuals is not yet known, the regulated entity must report the breach using an estimated total for the number of affected individuals, with the estimated figure typically being 500 or 501. A figure of 500 affected individuals is the threshold for media announcements and public listing of the data breach on the HHS’ Office for Civil Rights breach portal.

Looking at the business sector only, healthcare also had one of the shortest delays, taking an average of 3.4 months to report the data breach, slightly ahead of utilities at 3.3 months. Healthcare businesses in this sector were not direct healthcare providers.

Comparitech also identified shorter breach reporting times in states that have implemented data breach notification laws, with an average time of 3.9 months to report a breach in those states compared to 4.2 months in other states. The states with the longest breach reporting times were Wyoming (7.3 months), the District of Columbia (6.6 months), and North Dakota (6.3 months), whereas the states with the shortest reporting periods were Montana (1.9 months), South Dakota (2.2 months), and Alaska (2.3 months).

While it may not be possible to issue notification letters quickly, it is important to announce ransomware attacks to allow potentially affected individuals to take steps to protect themselves. If it takes 4.1 months on average to report a ransomware-related data breach, that gives ample time for stolen data to be misused.

Ransomware groups that engage in double extortion list the stolen data on their data leak sites if the ransom is not paid, and the data can be downloaded by anyone. That means the data could be misused for several months before the affected individuals are notified. If a notice is added to the breached organization’s website, even if data theft has not been confirmed, consumers would be aware that they could potentially be at risk and could take steps to protect themselves.

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Microsoft, Fortinet & Ivanti Warn About Actively Exploited Zero Day Vulnerabilities

Microsoft, Fortinet & Ivanti have all notified customers about vulnerabilities in their products that are known to have been exploited by threat actors. Prompt patching is strongly recommended, and workaround/mitigations should be implemented if patching must be delayed.

Microsoft

On Patch Tuesday, Microsoft issued patches for five vulnerabilities known to have been exploited in the wild, plus two publicly disclosed zero-day vulnerabilities. The actively exploited  vulnerabilities are:

Product CVE Severity Type Outcome
Microsoft DWM Core Library CVE-2025-30400 Important Elevation of Privilege Local elevation of privilege to SYSTEM
Windows Common Log File System CVE-2025-32701 Important Elevation of Privilege Local elevation of privilege to SYSTEM
Windows Common Log File System CVE-2025-32706 Important Elevation of Privilege Local elevation of privilege to SYSTEM
Windows Ancillary Function Driver CVE-2025-32709 Important Elevation of Privilege Local elevation of privilege to SYSTEM
Microsoft Scripting Engine CVE-2025-30397 Important Memory Corruption Code execution

The following vulnerabilities have been publicly disclosed:

Product CVE Severity Type Outcome
Microsoft Defender CVE-2025-26685 Important Identity Spoofing Spoofing of another account over an adjacent network
Visual Studio CVE-2025-32702 Important Remote Code Execution Local code execution by an unauthenticated attacker

Microsoft also released patches for six critical vulnerabilities that are not known to have been exploited but should be prioritized. They affect Microsoft Office (CVE-2025-30377 and CVE-2025-30386), Microsoft Power Apps (CVE-2025-47733), Remote Desktop Gateway Service (CVE-2025-29967), and Windows Remote Desktop (CVE-2025-29966).

Fortinet

Fortinet has issued a security advisory about a critical vulnerability affecting its FortiVoice, FortiMail, FortiNDR, FortiRecorder, and FortiCamera products. The stack-based buffer overflow vulnerability has been assigned a CVSS v4 severity score of 9.6 (CVSS v3.1: 9.8) and can be exploited by a remote unauthenticated hacker by sending HTTP requests with a specially crafted hash cookie. Successful exploitation of the vulnerability can allow arbitrary code execution.

Fortinet said it has observed exploitation of the vulnerability on FortiVoice. The threat actor scanned the device network, erased system crashlogs, and enabled fcgi debugging to log credentials from the system or SSH login attempts. The vulnerability is tracked as CVE-2025-32756 and affects the following product versions:

Affected Product Affected Versions Fixed Versions
FortiVoice 7.2.0 Upgrade to 7.2.1 or above
7.0.0 through 7.0.6 Upgrade to 7.0.7 or above
6.4.0 through 6.4.10 Upgrade to 6.4.11 or above
FortiRecorder 7.2.0 through 7.2.3 Upgrade to 7.2.4 or above
7.0.0 through 7.0.5 Upgrade to 7.0.6 or above
6.4.0 through 6.4.5 Upgrade to 6.4.6 or above
FortiMail 7.6.0 through 7.6.2 Upgrade to 7.6.3 or above
7.4.0 through 7.4.4 Upgrade to 7.4.5 or above
7.2.0 through 7.2.7 Upgrade to 7.2.8 or above
7.0.0 through 7.0.8 Upgrade to 7.0.9 or above
FortiNDR 7.6.0 Upgrade to 7.6.1 or above
7.4.0 through 7.4.7 Upgrade to 7.4.8 or above
7.2.0 through 7.2.4 Upgrade to 7.2.5 or above
7.1 all versions Migrate to a fixed release
7.0.0 through 7.0.6 Upgrade to 7.0.7 or above
1.1 through 1.5 Migrate to a fixed release
FortiCamera 2.1.0 through 2.1.3 Upgrade to 2.1.4 or above
2.0 all versions Migrate to a fixed release
1.1 all versions Migrate to a fixed release

Fortinet has issued indicators of Compromise in its security alert. If immediate patching is not possible, Fortinet recommends disabling the HTTP/HTTPS administrative interface

Ivanti

Ivanti has issued a security advisory about two vulnerabilities affecting the Ivanti Endpoint Manager Mobile (EPMM) solution, one is a medium severity flaw and the other is high severity flaw. The two vulnerabilities can be chained together and can allow unauthenticated remote code execution. Ivanti explained that the two vulnerabilities are associated with open-source code used in the EPMM, and not within Ivanti’s code.

The medium severity flaw is tracked as CVE-2025-4427 and is an authentication bypass flaw with a CVSS v3.1 severity score of 5.3. The second vulnerability is a remote code execution vulnerability with a CVSS v3.1 severity score of 7.2

Affected Product Affected Versions Fixed Versions
Ivanti Endpoint Mobile Manager 11.12.0.4 and prior 11.12.0.5 and later
12.3.0.1 and prior 12.3.0.2 and later
12.4.0.1 and prior 12.4.0.2 and later
12.5.0.0 and prior 12.5.0.1 and later

Ivanti said users should upgrade to the latest version as soon as possible; however, risk can be greatly reduced if the user filters access to the API using the built-in Portal ACLs or an external WAF.

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Ransomware Attacks Increase 123% in 2 Years with 52 New Groups Emerging in 2024

New research from Black Kite has shed light on the changing ransomware ecosystem. Over the past year, there has been a marked shift from large ransomware syndicates conducting the bulk of attacks to an increasingly fragmented ransomware ecosystem with a growing number of smaller groups and lone actors.

The report is based on data collected by the Black Kite Research & Intelligence Team (BRITE) between April 2024 and March 2025, including victim analysis, dark web intelligence gathering, and continuous monitoring of ransomware operations. Out of the 150 ransomware groups tracked by BRITE, 96 were considered active, having conducted at least one attack in the past 12 months, a sizeable increase from the 61 active ransomware groups in April 2023. Out of the 96 active ransomware groups, 52 are entirely new groups that emerged in the past 12 months. Over that period, there was a 24% year-over-year increase in the number of publicly disclosed ransomware victims (6,046), which follows an 81% increase over the preceding year, amounting to a 123% increase in disclosed ransomware victims in the past two years.

When the ransomware ecosystem was dominated by large ransomware syndicates such as LockBit and ALPHV/BlackCat, there was a degree of predictability to the attacks, but the power vacuum left by the law enforcement operations against LockBit and the shutdown of ALPHV has led to the creation of many smaller groups, with some of the more experienced actors branching out on their own. With so many new groups, the ransomware ecosystem has become more chaotic, with less sophisticated attacks being conducted in greater volume. BRITE reports that these smaller groups tend to lack the infrastructure, discipline, and credibility of their predecessors, and this shift has resulted in an increase in attack volume, a fall in coordination, and growing unpredictability in how, where, and why attacks unfold.

One trend that has emerged is a shift from attacks on larger companies with deeper pockets to attacks on small to medium-sized businesses (SMBs), which tend to have poorer defenses, smaller cybersecurity teams, and carry a lower risk of retaliation from law enforcement. The potential rewards from conducting the attacks are lower, with BRITE reporting a 35% reduction in ransom payment values in the past 12 months; however, the overall impact of ransomware attacks has widened. In 2024, the average ransom demand was $4,24 million, the median ransom payment was $2 million, and the average ransom payment was $553,959. SMBs with between $4 and $8 million appear to be the sweet spot in terms of ease of conducting attacks and ransom payment value.

In terms of targets, ransomware groups tend to conduct strategic attacks with the top three targets unchanged year-over-year. Manufacturing was the most targeted sector with 1,315 victims over the past 12 months. Attacks on the sector tend to result in massive disruption to business operations, with the costs of downtime increasing the probability of ransoms being paid. Professional and technical services were the second-most targeted sector with 1,040 attacks, followed by healthcare and social assistance with 434 known attacks.

In terms of the growth of attacks on different sectors, excluding the mass exploitation of vulnerabilities by the Clop group as an outlier, wholesale trade saw the biggest growth with a 2.27% increase in attacks, with healthcare and social assistance in second with 1.44% growth. Physicians and health practitioners overtook hospitals in terms of victim count, as they tend to have far weaker security, lack dedicated security teams, and handle reasonable volumes of sensitive patient data, making them low-hanging fruit with significant extortion potential.  These smaller healthcare providers accounted for 38% of attacks, with hospitals in second spot (20%), social assistance in third (11%), and nursing and residential facilities in fourth (9%).

BRITE also reports deeper entanglement in supply chains, with ransomware groups increasingly targeting third-party vendors, as an attack on a vendor can easily allow the ransomware actor to attack and attempt extortion on dozens of downstream organizations. BRITE reports that ransomware was behind 67% of all known third-party breaches. “Incidents involving Change Healthcare, Blue Yonder, and CDK Global made clear that ransomware’s impact is no longer contained within the four walls of the initially affected organization,” explained Black Kite in the report. “When threat actors compromise a widely used vendor, the effects ripple outward, paralyzing downstream businesses in multiple sectors. In this way, ransomware is increasingly a supply chain problem, not just a cybersecurity one.”

Black Kite predicts a deepening fragmentation of the ransomware ecosystem over the coming year, an increase in double targeting of victims with different ransomware variants deployed in a short space of time, speedier attacks with reduced dwell time between initial access and ransomware deployment, and increased automation and AI-assisted reconnaissance.

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HPH Sector Warned About Exploitation of Miracle Exploit Vulnerabilities in Oracle Systems

A critical vulnerability affecting multiple Oracle products is being exploited in the wild. The vulnerability was dubbed The Miracle Exploit by the security researchers who discovered it, due to its severity and the number of products they affected – all products based on Oracle Fusion Middleware and Oracle online systems. The vulnerability is one of a pair of related vulnerabilities that were discovered two years apart. The vulnerabilities can be chained, and both can lead to remote code execution.

The Oracle Fusion Middleware products are used to build web interfaces for Java EE applications and any website developed by ADF Faces framework is affected. The vulnerabilities also affect Oracle Business Intelligence, Enterprise Manager, Identity Management, SOA Suite, WebCenter Portal, Application Testing Suite, and Transportation Management. The vulnerabilities are tracked as CVE-2022-21445 (CVSS 9.8) and CVE-2022-21497 (CVSS 8.1) and can be exploited easily by an unauthenticated attacker with network access via HTTP for an application takeover. Successful exploitation can lead to a full system compromise and lateral movement within a network. The vulnerabilities could be exploited to steal sensitive data and could be leveraged by ransomware groups in the future.

CVE-2022-21445 is a deserialization of untrusted data vulnerability and CVE-2022-21497 is a server-side request vulnerability. The first vulnerability allows remote code execution, and the second one could be exploited for lateral movement to other Oracle systems and can also lead to remote code execution. Oracle released patches to fix the vulnerabilities in April 2022, 6 months after the CVE-2022-21445 vulnerability was discovered. In September, the Cybersecurity and Infrastructure Security Agency (CISA) added the CVE-2022-21445 Miracle Exploit vulnerability to its Known Exploited Vulnerabilities (KEV) Catalog. No information was released about the extent to which the vulnerability has been exploited, and there have been no public reports of exploitation, although CISA does receive some reports privately.

Due to the severity of the vulnerabilities and their impact, the Health Sector Cybersecurity Coordination Center has recently released an analyst note warning the healthcare and public health sector about the risk of exploitation. Healthcare organizations could be vulnerable if they use Oracle Fusion products that rely on the ADF Faces framework. HC3 warns that if the vulnerable Oracle middleware components are integrated into their software for managing electronic medical records or other critical systems, exploitation of the vulnerabilities could result in data breaches, operational disruptions, and potentially regulatory penalties.

HC3 recommends applying the latest patch for Oracle JDeveloper, segmenting networks and ensuring environments that use JDeveloper are isolated from production systems, and limiting access to JDeveloper environments to trusted users only and enforcing strong authentication mechanisms.

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HC3 Issues Warning About Scattered Spider Threat Actor

A warning has been issued by the HHS’ Health Sector Cybersecurity Coordination Center (HC3) about a financially motivated group known as Scattered Spider. Many cybercriminal groups are Russian-speaking and are based in Russia or the Commonwealth of Independent States; however, Scattered Spider is a native English-speaking group and its members are believed to be mostly located in the United States and the United Kingdom. There have been four arrests in those countries but the group remains active. Intelligence gathered on the group suggests the members are mostly in the 19-22 age group.

Rather than develop their own malware payloads and attack tools, Scattered Spider uses publicly available tools and malware developed by other threat actors. Legitimate tools known to have been leveraged by the group include remote monitoring and management solutions such as AnyDesk, Connectwise Control, ASG Remote Desktop, Screenconnect, and Splashtop; Mimikatz and LaZagne for credential theft; and Ngrok to create secure tunnels to remote web servers.

The group has previously used multiple malware variants in its operations including Atomic, Racoon Stealer, VIDAR Stealer, and Meduza Stealer, as well as phishing kits such as EIGHTBAIT and Oktapus, and the BlackCat and Ransomhub ransomware variants. The group has also collaborated with the Qilin threat group.

Information stealers are commonly used to obtain credentials for initial access, and then living-off-the-land techniques are used to evade security solutions while the group moves laterally within networks, disabling security solutions and stealing sensitive data. Attacks often end with the deployment of ransomware.

Scattered Spider uses advanced social engineering tactics, with its members well-versed in spear phishing, smishing, and voice phishing. One campaign attributed to Scattered Spider involves spear phishing voice techniques, where members of the IT Help Desk are targeted over the phone with the group posing as employees, sometimes aided by artificial intelligence to impersonate voices.

The aim is to trick the IT Help Desk into performing password resets and registering their own devices to receive multifactor authentication codes. The Help Desk is provided with personal information about the person they are impersonating and usernames and employee IDs obtained in previous stages of its attacks. HC3 has previously issued a warning about this campaign as healthcare organizations were among the group’s victims.

Scattered Spider has been active since at least 2022 and was initially focused on customer relationship management (CRM), business process outsourcing (BPO), telecommunications, and technology companies; however, the group has since expanded its targeting and has been attacking a broader range of sectors. While the healthcare industry has not been extensively targeted by the group, healthcare organizations have been attacked. The Scattered Spider threat actor profile shares indicators of compromise and recommended mitigations to improve defenses.

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OCR Offers Advice on Recognizing, Avoiding, and Mitigating Social Engineering Attacks

The majority of healthcare data breaches reported in the past few years are due to hacking incidents but many of these security incidents do not involve the exploitation of vulnerabilities in software and operating systems for initial access. Far more common is the exploitation of human vulnerabilities, where healthcare workers are tricked into providing cyber actors with access to internal systems and sensitive data. According to the Verizon 2024 Data Breach Investigations Report, more than two-thirds of breaches involve the human element rather than the exploitation of weaknesses and vulnerabilities in technology.

One of the most common methods used is phishing, where a cyber actor makes contact with a healthcare employee and convinces them to visit a malicious website where they are asked to enter their credentials or are convinced to download a malicious file, both of which give the cyber actor the access they need. With phishing, the initial contact is often via email, although an increasing number of phishing attacks are now occurring via SMS (smishing), instant messaging platforms, social media networks, and over the telephone (vishing).

Phishing usually involves deception and impersonation. A trusted individual, company, or institution is impersonated, and the targeted individual is provided with a seemingly legitimate reason for taking the requested action. This could be a request for collaboration on a report, a notification about a failed delivery, a missed payment of an invoice, or a security warning. There is often a threat of negative consequences if no action is taken, commonly a pressing matter such as impending loss of service, a significant charge that will soon be applied to an account, or unauthorized account access that warrants immediate steps to secure the account.

The techniques used in phishing are known as social engineering – manipulation, influencing, or deceiving someone into taking a certain action, which in cybersecurity terms involves gaining unauthorized access to computer systems, financial accounts, or sensitive data. While phishing is one of the best-known attack methods that uses social engineering techniques, cyber actors use social engineering in other types of attacks to achieve similar goals. There is baiting, where social engineering is used to trick someone into taking an action to obtain something of value, such as to be entered into a free prize draw or get an amazingly low purchase price on goods and services. In order to get what is promised, sensitive information must be disclosed such as credentials, a credit/debit card number, or personal information.

Advances in artificial intelligence (AI) technology have provided cyber actors with a new way of manipulating individuals – deepfakes. Deepfakes take impersonation and deception to a new level, where trusted individuals are impersonated via audio or video. Deepfakes of authority figures can be created that are incredibly realistic, using synthesized facial images and speech or manipulated videos, photos, and audio recordings to trick people into taking any number of actions. Deepfakes can even be created in real-time, such as impersonating a CEO in a call to a help desk to request credentials be reset or to add an attacker-owned device to receive multifactor authentication codes, or in Zoom meetings where the meeting participants are convinced they are conversing with the genuine person.

Social engineering is the subject of the October 2024 cybersecurity newsletter from the HHS’ Office for Civil Rights. In the newsletter, OCR explains how social engineering is used in attacks on healthcare organizations and how to identify and avoid social engineering attacks. The newsletter also explains how compliance with the HIPAA Security Rule can help HIPAA-regulated entities improve their defenses against social engineering and mitigate threats.

“Attackers have learned how to convincingly imitate our loved ones and our business partners, meaning that nothing can be assumed or taken at face value. Attackers continue to refine their manipulation through social engineering tradecraft. All of these threats have a common theme; they all attempt to convince an individual to do something they would not otherwise do normally, or to provide details such as credentials someplace other than where they should be used,” explained OCR in the newsletter. “Educating workforce members on these attacks is essential when it comes to an individual’s ability to identify and potentially halt social engineering attacks before they start. Such knowledge is powerful not only to protect individuals in their personal online activities, but also by extension an individual’s employer. This is especially important in the current environment where work is taken home on laptops, smartphones, and through remote work.”

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BakerHostetler Report Identifies Healthcare Data Breach and Litigation Trends

BakerHostetler has released the 10th edition of its Data Security Incident Response Report, which shares data from the incidents the law firm has helped to manage. The report provides insights into the current cyber threat landscape and litigation trends.

Data Breach Insights

Healthcare accounted for 28% of data breach incidents, followed by finance and insurance (17%), business and professional services (15%), and education (13%). The biggest known root cause of all incidents was the exploitation of unpatched vulnerabilities (23% of incidents) followed by phishing (20%). By far the most common cause of security incidents in 2023 was network intrusions, which accounted for 51% of security incidents the law firm helped to manage, followed by business email compromise incidents (26%), and inadvertent disclosures (26%).

Cybercriminals are getting better at covering their tracks, as the root cause of 36% of network intrusions could not be determined. The main known cause of these incidents was vulnerability exploitation (25% of attacks). Phishing was involved in 9% of network intrusions, 5% involved brute force or credential stuffing, 4% were due to misconfigurations, 3% were due to RDP compromise, and 3% due to social engineering. 72% of successful network intrusions involved the deployment of ransomware, 57% involved data exfiltration, and 46% saw malware installed.

The average ransom demand was $2,644,647 and the average ransom payment was $747,651 but these were considerably higher in healthcare with an average demand of $3,492,434 and an average ransom payment of $857,933. In healthcare, it took an average of 13.4 days to acceptable data restoration and an average of 158,362 notifications had to be sent. As has been seen in other data, the percentage of victims paying a ransom is falling. 27% of attacked companies paid a ransom in 2023, compared to 40% in 2022.

The was a significant increase in data breaches at vendors. In 2023, business associates were responsible for 60% of the breaches of 500 or more records that were reported to the HHS’ Office for Civil Rights (OCR), compared to 35% in 2022. There was also a major increase in the size of healthcare data breaches, jumping by almost 200% from 2022 to 2023, from 56.9 million individuals to 144.5 million in 2023. The median time from incident to discovery was 2 days, 0 days to containment, 33 days to complete the forensic investigation, and 60 days from discovery to notification. The average time from occurrence to detection was 42 days and from detection to notice was 75 days.

Phishing and social engineering attacks have been getting more sophisticated. New social engineering scams that have become common involve threat actors contacting IT helpdesks to request password resets and enroll new devices to accept MFA codes. Several business email compromise attacks occurred as a result of QR code phishing attacks (Quishing), and many phishing attacks occurred via SMS messages (smishing). While multifactor authentication was sufficient to keep threat actors out of email accounts, MFA is increasingly bypassed in attacks. 43% of incidents required notifications to be issued, with an average of 98,504 notifications required. Out of the 493 incidents that required notifications to be issued, 58% resulted in lawsuits being filed, up from 42 in 2022.

Class Action Lawsuits Over Tracking Technologies Soar

Class action lawsuits over website tracking technology breaches are increasingly being filed, especially against healthcare organizations following guidance from the HHS’ Office for Civil Rights warning that the technologies violated HIPAA. The Federal Trade Commission (FTC) is also cracking down on organizations that use the technology without informing consumers.

BakerHostetler is currently defending more than 300 privacy or data security lawsuits and over 100 of those lawsuits involve data breaches due to the use of tracking technologies. More than 200 lawsuits have now been filed against healthcare organizations as a result of the use of tracking technologies, 75% of which were filed in the past year. Many of these lawsuits are still in the early stages, with only one case so far granted class certification and one that has had class certification denied. The first trial in a healthcare website tracking technology lawsuit is due to take place this summer. Several lawsuits have been quickly settled, with each individual due to receive an average of between $4 and $5. Since those settlements have been announced there has been an increase in the initial demands for damages.

OCR Enforcement Insights

After three years of relatively high numbers of enforcement actions, 2023 saw a fall in OCR enforcement activity. In 2023 there was a notable reduction in enforcement actions over HIPAA Right of Access violations (4) than the average of 14 over the previous three years. While there was an increase in enforcement actions for other HIPAA violations – 10 in 2023 vs 5 in 2022 and 3 in 2021 – OCR only imposed 11 penalties in 2023 to resolve HIPAA violations, compared to an average of 19 in the three previous years. BakerHostetler suggests the drop off in enforcement actions may be due to OCR focusing on another enforcement priority. OCR has issued guidance on HIPAA compliance with respect to website tracking technologies, and BakerHostelter suggests that may now be an enforcement focus for OCR.

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