HIPAA Breach News

Revere Health Phishing Attack Impacts 12,000 Patients

The U.S. Agency for International Development (USAID) was impersonated in phishing campaign that has resulted in the exposure of the protected health information of approximately 12,000 patients of the Utah healthcare provider Revere Health. The phishing attack was rapidly detected by the revere Health IT team, which quickly secured the mailbox to block unauthorized access. According to a breach notice published by Revere Health, the mailbox was only compromised for around 45 minutes on June 21, 2021.

An investigation was launched into the breach to determine whether any information in the email account was viewed or downloaded. While it was not possible to tell whether emails in the account were accessed or exfiltrated, Revere Health said it has monitored the Internet and has found no instances of patient data being shred online.

A review of emails and email attachments confirmed they contained the protected health information of patients of the Heart of Dixie Cardiology Department in St. George, which included medical record numbers, dates of birth, provider names, procedures, and insurance provider names, but no financial information or highly sensitive data.

Revere Health believes the aim of the attacker was not to gain access to patient data, but to use the email account for a more sophisticated phishing attack on Revere health employees. Given the short window of opportunity and the limited nature of the data contained in the account, the risk to patients is perceived to be low. Patients have been advised to be vigilant against any attempted misuse of their data.

The US Agency for International Development has recently been impersonated in a phishing campaign conducted by the Russian threat group Nobelium, which was behind the SolarWinds supply chain attack. The campaign has been ongoing since early 2021. The hackers gained control of the Constant Contact email marketing account used by USAID, and the account was used to send convincing phishing emails to more than 350 organizations. In that campaign the goal was to deliver malware by impersonating genuine USAID email communications. In late May, the U.S. Department of Justice seized two domains being used in the spear phishing campaign.

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California DOJ Must Be Notified About Breaches of the Health Data of 500 or More California Residents

The Breach Notification Rule of the Health Insurance Portability and Accountability Act (HIPAA) requires covered entities and business associates to sent notifications to the HHS’ Office for Civil Rights (OCR) about data breaches, but healthcare organizations are also required to comply with state data breach notification laws.

Many states have introduced their own data privacy laws, which typically require notifications to be sent to appropriate state Attorneys General if a data breach exceeds a certain threshold. States have the authority to bring civil actions against healthcare organizations that fail to issue breach notifications under both HIPAA and state laws. In California, the threshold for reporting breaches is in line with HIPAA. If a data breach is experienced that impacts 500 or more California residents, the California Department of Justice (DOJ) must be notified.

Recently, there have been several instances where the California DOJ has not been notified about ransomware attacks on California healthcare facilities, even though the personal and protected health information of California residents has likely been compromised in the attack.

California Attorney General Rob Bonta has recently issued a bulletin reminding all entities that house the confidential health-related information of California residents of their data breach reporting responsibilities under California law (Civil Code section 1798.82). Whenever there has been a breach of the health data of 500 or more California residents, a breach report must be submitted to the Office of the Attorney General. The California DOJ then publishes the breach notice on its website to ensure the public is made aware of the breach to allow victims to take appropriate action to protect themselves against identity theft and fraud. Individual notifications must also be issued to affected individuals.

“Timely breach notification helps affected consumers mitigate the potential losses that could result from the fraudulent use of their personal information obtained from a breach of health data,” said Attorney General Bonta. “Therefore, it is important for providers of healthcare to be proactive and vigilant about reducing their risk for ransomware attacks and to meet their health data breach notification obligations to protect the public.”

In the bulletin, Attorney General Bonta also urged healthcare organizations to take proactive steps to protect patient data against ransomware attacks.

“State and federal health data privacy frameworks, like the Confidentiality of Medical Information Act (CMIA) and the Health Insurance Portability and Accountability Act of 1996 (HIPAA), obligate healthcare entities and organizations that deal in health data to establish appropriate procedures to ensure the confidentiality of health-related information, including security measures that can help prevent the introduction of malware, including ransomware, to protect consumers’ healthcare-related information from unauthorized use and disclosure,” explained AG Bonta.

Healthcare organizations are encouraged to take the following proactive steps:

  • Keep operating systems and software housing health data current
  • Apply security patches promptly
  • Install and maintain antivirus software
  • Provide regular data security training to employees, including education about phishing attacks
  • Restrict users from downloading, installing, and running unapproved software
  • Maintain and regularly test the data backup and recovery plan for all critical information 

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July 2021 Healthcare Data Breach Report

High numbers of healthcare data breaches continued to be reported by HIPAA-covered entities and their business associates. In July, there were 70 reported data breaches of 500 or more records, making it the fifth consecutive month where data breaches have been reported at a rate of 2 or more per day.

Healthcare data Breaches Past 12 months (Aug 20-July21)

The number of breaches was slightly lower than June, but the number of records exposed or compromised in those breaches jumped sharply, increasing by 331.5% month-over-month to 5,570,662 records.

Healthcare records breached Aug20 to July 21

Over the past 12 months, from the start of August 2020 to the end of July 2021, there have been 706 reported healthcare data breaches of 500 or more records and the healthcare data of 44,369,781 individuals has been exposed or compromised. That’s an average of 58.8 data breaches and around 3.70 million records per month!

Largest Healthcare Data Breaches in July 2021

Two healthcare data breaches stand out due to the sheer number of healthcare records that were exposed – and potentially stolen. The largest healthcare data breach to be reported in July was a hacking/IT incident reported by the Wisconsin healthcare provider Forefront Dermatology. The exact nature of the attack was not disclosed so it is unclear if ransomware was used. Hackers gained access to parts of its network that contained the protected health information of 2.4 million individuals. The second largest data breach was reported by Practicefirst, a New York business associate of multiple HIPAA-covered entities. Ransomware was used in the attack and the healthcare data of 1.2 million individuals was potentially exfiltrated.

Name of Covered Entity Covered Entity Type Individuals Affected Type of Breach Breach Cause Business Associate Present
Forefront Dermatology, S.C. Healthcare Provider 2,413,553 Hacking/IT Incident Unspecified hacking incident Yes
Professional Business Systems, Inc., d/b/a Practicefirst Medical Management Solutions/PBS Medcode Corp Business Associate 1,210,688 Hacking/IT Incident Ransomware attack Yes
UF Health Central Florida Healthcare Provider 700,981 Hacking/IT Incident Ransomware attack No
Orlando Family Physicians, LLC Healthcare Provider 447,426 Hacking/IT Incident Phishing attack No
HealthReach Community Health Centers Healthcare Provider 122,340 Improper Disposal Improper disposal of electronic medical records No
Guidehouse Business Associate 84,220 Hacking/IT Incident Ransomware attack (Accellion FTA) Yes
Advocate Aurora Health Healthcare Provider 68,707 Hacking/IT Incident Ransomware attack (Elekta) Yes
McLaren Health Care Corporation Healthcare Provider 64,600 Hacking/IT Incident Ransomware attack (Elekta) Yes
Coastal Family Health Center, Inc Healthcare Provider 62,342 Hacking/IT Incident Ransomware attack No
Florida Heart Associates Healthcare Provider 45,148 Hacking/IT Incident Ransomware attack No
A2Z Diagnostics, LLC Healthcare Provider 35,587 Hacking/IT Incident Phishing attack No
University of Maryland, Baltimore Business Associate 30,468 Hacking/IT Incident Unspecified hacking incident Yes
Florida Blue Health Plan 30,063 Hacking/IT Incident Brute force attack (Member portal) No
Intermountain Healthcare Healthcare Provider 28,628 Hacking/IT Incident Ransomware attack (Elekta) Yes

Causes of July 2021 Healthcare Data Breaches

As the table above shows, ransomware continues to be extensively used in cyberattacks on healthcare organizations and their business associates. Those attacks can easily result in the theft of large amounts of healthcare data. The majority of ransomware gangs (and their RaaS affiliates) are now exfiltrating sensitive data prior to using ransomware to encrypt files. Victims are required to pay to prevent the publication or sale of the stolen data as well as a payment to obtain the keys to decrypt files.

To help combat this rise in double extortion ransomware attacks, new guidance has been released by the Cybersecurity and Infrastructure Security Agency. The National Institute of Standards and Technology (NIST) has also updated its cybersecurity guidance on building resilient computer networks, with the emphasis now shifting away from perimeter defenses to assuming attackers have already gained access to the network. Mechanisms therefore need to be implemented to reduce the harm that can be caused.

Causes of July 2021 Healthcare Data Breaches

Hacking/IT incidents, of which ransomware accounts for a many, dominate the month’s breach reports. There were 52 reported hacking/IT incidents in which the protected health information of 5,393,331 individuals was potentially compromised. That’s 96.82% of all records breached in July. The mean breach size was 103,718 records and the median breach size was 4,185 records.

There were 13 reported unauthorized access/disclosure incidents, which include misdirected emails, mailing errors, and snooping by healthcare employees. 52,676 healthcare records were impermissibly viewed or disclosed to unauthorized individuals across those incidents. The mean breach size was 4,052 records and the median breach size was 1,038 records. There were two theft incidents reported involving a total of 2,275 records and one improper disposal incident involving 122,340 electronic health records.

The vast majority of incidents involved the hacking of network servers; however, email accounts continue to be compromised at high rates. 21 breaches involved protected health information stored in email accounts. The majority of the email incidents involved the theft of employee credentials in phishing attacks.

Location of breached protected health information (July 2021)

Data Breaches by Covered Entity Type

Healthcare providers reported 47 data breaches in July, with 11 breaches reported by business associates and 10 breaches reported by health plans; however, the reporting entity is not the best gauge of where these breaches occurred. In many cases, the breach was experienced at a business associate, but was reported by the covered entity.

When this is taken into account, the figures show that healthcare provider and business associate data breaches are on a par, with 30 breaches each for July 2021, as shown in the pie chart below.

July 2021 healthcare data breaches by covered entity type

July 2021 Healthcare Data Breaches by State

July saw healthcare data breaches reported by HIPAA-covered entities and business associates based in 32 states and the District of Columbia.

State Number of Reported Healthcare Data Breaches
Florida 6
California, New York & Texas 5
Illinois & North Carolina 4
Connecticut, Minnesota, Nebraska & New Jersey 3
Mississippi, Oklahoma, Washington & Wisconsin 2
Alabama, Georgia, Iowa, Indiana, Kansas, Kentucky, Maine, Maryland, Massachusetts, Michigan, Missouri, Montana, Ohio, Pennsylvania, South Carolina, Utah, Virginia, West Virginia & the District of Columbia 1

HIPAA Enforcement Activity in July 2021

The HHS’ Office for Civil Rights (OCR), the primary enforcer of HIPAA compliance, did not announce any new enforcement actions against HIPAA-covered entities or business associates in July, nor were there any enforcement actions announced by state Attorneys General.

The OCR year-to-date total still stands at 8 financial penalties totaling $5,570,100, with just the one financial penalty imposed by state attorneys general – A multi-state action that saw American Medical Collection Agency (AMCA) fined $21 million.

Data for this report came from the HHS’ Office for Civil Rights breach portal.

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HVAC Vendor Allegedly Hacked: Access Gained to Hospital Systems

In early August, a hacker made contact with Dissent of DataBreaches.net and claimed to have hacked into the systems of a HVAC vendor. Through that vendor the hacker claimed to have gained access to the networks of its clients, one of which was Boston Children’s Hospital.

The company in question is Canton, MA-based ENE Systems. DataBreaches.net reported in a recent blog post that the hacker had attempted to extort money from the HVAC vendor but the ransom was not paid. The hacker still claimed to have access to the network of ENE Systems and those of its clients and told Dissent that he/she was not interested in causing harm to the hospital. DataBreaches.net was asked to reach out to the hospital and make it clear that its network had been breached through the HVAC vendor, in case the vendor had not communicated the breach to the hospital. DataBreaches.net was provided with screenshots as proof of the hack.

While it was not confirmed whether the networks of other hospitals had been breached, ENE systems lists Brigham & Women’s Hospital and Mass General Hospital as its clients on its website.

Mass General Hospital issued a statement about the incident saying, “The hospital was made aware of potential cyber security issues involving one of its vendors. Once notified, immediate action was taken to follow appropriate guidance to mitigate the risk. Hospital systems and operations remain unaffected by this incident.” Boston Children’s Hospital also confirmed that its vendor had experienced a breach and stated there is no risk to hospital operations nor its business environment, and no patient data were affected in the security incident. Brigham & Women’s Hospital said it had not been notified about any issues with its HVAC vendor.

Supply chain attacks can see the systems of many organizations compromised, as the recent attacks on SolarWinds and Kaseya demonstrated. Attacks can occur at any point in the supply chain, and HVAC vendors have been targeted in the past as they are a potential security weak point.

One notable attack involving an HVAC vendor was the 2013 cyberattack on Target. Hackers gained access to the network of its HVAC vendor, Fazio Mechanical Services. The company was contracted to monitor Target’s refrigerated units and was provided with access to Target’s network to perform the contracted duties.

The hackers exploited that access, compromised Target’s network, then moved laterally and accessed its POS system and stole the credit card data of 41 million individuals and the contact information of 60 million customers. Target’s 2016 financial report put the total breach cost at $292 million.

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Contact Tracing Survey Data of 750,000 Hoosiers Exposed Online

The personal information of 750,000 Hoosiers collected as part of a COVID-19 contact tracing survey conducted by the Indiana Department of Health has been exposed online and downloaded by a company not authorized to access the data. The survey included information such as names, addresses, dates of birth, emails, and information on gender, ethnicity and race.

The Indiana Department of Health was notified about the unauthorized access on July 2, 2021 and immediately took steps to secure the data to prevent further unauthorized access. According to Tracy Barnes, the Chief Information Officer of the state of Indiana, the company that accessed and downloaded the data was a firm “that intentionally looks for software vulnerabilities, then reaches out to seek business.”

Last week, the Indiana Department of Health obtained a signed “certificate of destruction” from the company confirming the downloaded data had been permanently destroyed and that no further copies of the data had been retained. The company also confirmed the downloaded data had not been disclosed to any other company or individual.  The Indiana Department of Health said the data were returned on August 4, 2021.

State Health Commissioner Kris Box believes the risk to state residents is minimal, especially considering the compromised data did not include highly sensitive information such as health data, health insurance information, Social Security numbers, or financial information.

An investigation was launched into the incident, and it was determined that the reason the data had been exposed was due to a software configuration issue, which left the data exposed to the Internet. Currently it is unclear if any individuals other than those at the cybersecurity company downloaded the records while they were exposed over the Internet.

“We take the security and integrity of our data very seriously,” said Barnes. “We have corrected the software configuration and will aggressively follow up to ensure no records were transferred.” Indiana’s Office of Technology will conduct scans regularly to ensure that the downloaded data is not transferred to third parties.

Notification letters are being sent to affected individuals to make them aware of the privacy breach, and the state said it will be offering a 12-month membership to a credit monitoring service provided by Experian to individuals affected by the breach.

The Indiana Department of Health did not name the company concerned, but HIPAA Journal has learned the company is UpGuard, a firm that regularly scans the Internet for misconfigured cloud services to identify sensitive exposed data. The company is proactive in searching for security vulnerabilities and exposed data and has identified many cases where sensitive data have been left unprotected. In all cases, the company alerts the entities concerned to ensure data are secured to prevent sensitive information falling into the hands of cybercriminals.

“Our team sent a note to the state of Indiana to notify them that they had an API that was configured for public access. Upon looking at the data, we determined that the information was sensitive and that it should not be public,” said UpGuard spokeswoman, Kelly Rethmeyer.

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1.4 Million Individuals Affected by St. Joseph’s/Candler Ransomware Attack

Around 4 a.m. on Thursday June 17, 2021, St. Joseph’s/Candler (SJ/C) hospital system in Savannah, GA suffered a ransomware attack. Upon detection of suspicious network activity, SJ/C immediately took steps to isolate and secure its systems. The attack prevented access to computer systems and emergency protocols were implemented, with staff reverting to pen and paper to record patient data.

SJ/C notified law enforcement about the security breach and launched an investigation. Assisted by third party cybersecurity firms, SJ/C determined the hackers first gained access to its systems on December 18, 2020 and continued to have access to those systems until June 17, 2021, when the ransomware was deployed.

“Patient care operations continue at our facilities using established back-up processes and other downtime procedures,” explained SJ/C in a statement shortly after the attack was detected. “Our physicians, nurses and staff are trained to provide care in these types of situations and are committed to doing everything they can to mitigate disruption and provide uninterrupted care to our patients.”

As the investigation into the breach continued it became clear that the parts of the network accessible to the hackers contained files that included patients’ protected health information. A comprehensive review of those files was conducted and determined the files contained patient information such as names, addresses, dates of birth, Social Security numbers, driver’s license numbers, patient account numbers, billing account numbers, financial information, health insurance plan member IDs, medical record numbers, dates of service, provider names, and medical and clinical treatment information regarding care received from SJ/C.

SJ/C has now confirmed the protected heath information of 1,400,000 patients was potentially compromised in the ransomware attack. Notification letters started to be sent to affected individuals on August 10, 2021 and complimentary credit monitoring and identity theft protection services are being offered. SJ.C said additional safeguards and technical security measures are being implemented to further protect and monitor its systems.

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Scripps Health Ransomware Attack Expected to Cost $106.8 Million

Ransomware attacks on hospitals can cause huge financial losses, as the Ryuk ransomware attack on Universal Health Services showed. UHS is one of the largest healthcare providers in the United States, and operates 26 acute care hospitals, 330 behavioral health facilities, and 41 outpatient facilities. UHS said in March 2021 that the September 2020 ransomware attack resulted in $67 million in pre-tax losses due the cost of remediation, loss of acute care services, and other expenses incurred due to the attack.

While the losses suffered by UHS were significant, the ransomware attack on Scripps Health has proven to be far more expensive. Scripps Health is a California-based nonprofit operator of 5 hospitals and 19 outpatient facilities in the state. In the May 2021 ransomware attack, Scripps Health lost access to information systems at two of its hospitals, staff couldn’t access the electronic medical record system, and its offsite backup servers were also affected.

Without access to critical IT systems, Scripps Health was forced to re-route stroke and heart attack patients from four of its main hospitals in Encinitas, La Jolla, San Diego and Chula Vista, and trauma patients could not be accepted at Scripps Mercy Hospital San Diego in Hillcrest and Scripps Memorial Hospital La Jolla. Scripps Health said it took 4 weeks to recover from the attack.

Losses sustained as a result of the attack are expected to reach $106.8 million, with the majority of that figure – $91.6 million – due to lost revenue during the 4-week recovery period. $21.1 million had to be spent on response and recovery, and Scripps Health was only able to recover $5.9 million from its cyber insurance policy.

The costs are likely to increase further still. The protected health information of 147,267 patients was compromised in the attack, and several class action lawsuits have been filed against Scripps Health over the theft of patient data. The expected losses do not include litigation costs.

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Cyberattack Forces Memorial Health System to Divert Patients to Alternate Hospitals

Marietta, OH-based Memorial Health System has been forced to divert emergency care due to a suspected ransomware attack.

The cyberattack occurred in the early hours of Sunday morning, with the health system forced to shut down IT systems to contain the attack. Emergency protocols were implemented due to the lack of access to essential IT systems, and the staff has been working with paper charts.

Memorial Health System operates three hospitals in Ohio and West Virginia, all of which have been affected by the attack. Since electronic health records were not accessible, patient safety was potentially put at risk, so the decision was taken to divert emergency patents.

“We will continue to accept: STEMI, STROKE and TRAUMA patients at Marietta Memorial Hospital. Belpre and Selby are on diversion for all patients due to radiology availability. It is in the best interest of all other patients to be taken to the nearest accepting facility,” according to an August 15 press release. “If all area hospitals on are diversion, patients will be transported to the emergency department closest to where the emergency occurred. This diversion will be ongoing until IT systems are restored.”

All urgent surgical appointments and radiology examinations on Monday were cancelled; however, all primary care appointments are going ahead as scheduled, although patients with appointments have been advised to call in advance to confirm.

“Maintaining the safety and security of our patients and their care is our top priority and we are doing everything possible to minimize disruption,” said Memorial Health System President and CEO Scott Cantley. “Staff at our hospitals – Marietta Memorial, Selby, and Sistersville General Hospital—are working with paper charts while systems are restored, and data recovered.”

An investigation into the breach has been launched, but it is too early to tell how much data, if any, have been compromised in the attack. Memorial Health System officials said they have not yet found evidence indicating the attackers obtained employee or patient data. IT experts are currently methodically investigating the breach to understand precisely how hackers gained access to its systems, the actions they took once access was gained, and which systems and files they viewed or downloaded.

The cyberattack has been reported to the FBI and the Department of Homeland Security, and the health system is working closely with its information technology partners to restore its systems and data as quickly as possible.

Bleeping Computer has reportedly seen evidence suggesting the Hive ransomware threat group was responsible for the attack. Like many other ransomware operations, the Hive ransomware gang is known for stealing data prior to using ransomware and has a leak site which is used to pressure victims into paying the ransom.

Bleeping Computer says evidence has been obtained suggesting databases containing the protected health information of around 200,000 patients were stolen in the attack, with the databases including names, dates of birth, and Social Security numbers.

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PHI of 47,000 Individuals Potentially Compromised in Electromed Inc. Data Breach

Electromed Inc., a New Prague, MN-based developer and manufacturer of airway clearance devices, has announced it suffered a security breach in June 2021 in which unauthorized individuals gained access to certain IT systems.

Electromed said unauthorized activity was detected in its IT systems on June 16, 2021 and steps were immediately taken to prevent further unauthorized access. An investigation was launched to determine the source and scope of the breach and third-party cybersecurity experts were engaged to assist with the investigation.

Electromed determined the unauthorized third party accessed certain files that contained the personal and protected health information of its customers, as well as information of its employees and certain third-party contractors.  A comprehensive review was conducted of all files on the affected systems, which revealed they contained customers’ first and last names, mailing addresses, medical information, health insurance information and, for associates, Social Security numbers, driver’s license numbers, and financial account information.

While it is possible that the above types of information were obtained by the attackers, no evidence has been found to indicate misuse of the above information and no reports have been received of any cases of identity theft related to the security breach.

As a precaution against identity theft and fraud, complementary credit monitoring and identity theft protection services have been offered to affected individuals, who have been advised to check their credit reports, financial accounts, and explanation of benefits statements for any sign of fraudulent activity.

“Protecting the privacy of customers’ personal information is important to us, and we regret any inconvenience this incident may cause its customers,” said Electromed in its substitute breach notice. “To help prevent a similar incident from occurring in the future, we have taken steps to enhance the security of its systems, and continues to review its security protocols and processes, and enhancing employee training and education.”

The security breach has ben reported to the HHS’ Office for Civil Rights as affecting 47,200 individuals.

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