HIPAA Breach News

Accidental Disclosures of PHI at LA Fire Department and Standard Modern Company

The Los Angeles Fire Department has discovered the COVID-19 vaccination statuses of 4,900 employees has been accidentally exposed online.

A list that included the full names of employees, dates of birth, employee numbers, and COVID-19 vaccination information (vaccination dates, doses, or declined vaccine) had been published on a website accessible to the public. During the time that the website was active, it was possible to visit the site and conduct searches of the database for names and employee numbers. The database was not password protected and no information had to be entered to authenticate users. If a wildcard search was conducted, a table was generated that listed the data of all 4,900 employees.

The website – covid.lacofdems.com – had been privately registered and was linked to the Fire Department’s Emergency Medical Service’s bureau. The website, which had not been authorized, was created on April 29, 2021 and was deactivated on July 15, 2021. The website had reportedly been created to allow Department employees to retrieve lost vaccination information.

Prior to the deactivation, a reporter at the LA Times downloaded the data from the database. An investigation into the owner of the site showed it was hosted by a department employee and had not been secured using government software or infrastructure.

After learning about the breach and exposure of vaccine status information, several firefighters took to social media to complain about the privacy violation. The firefighter’s union, Local 1014, has called for a full investigation to be conducted into the breach.

Error at Mailing Vendor Sees Letters Sent to Incorrect MassHealth Members

New Bedford, MA-based Standard Modern Company, Inc. has notified 2,707 patients about an accidental disclosure of some of their personal information.

Standard Modern Company provides mailing services to the Massachusetts Executive Office of Health and Human Services. On May 24, 2021, Standard Modern Company was notified that certain MassHealth members had received letters that contained the information of other MassHealth members. All mailings were ceased while the incident was investigated, with the investigation confirming an internal program error had occurred that affected mailings between May 10, 2021 and May 18, 2021. The error caused incorrect labels to be generated on a limited number of mailed notices.

In each case, a letter containing a member name, identification number, last four digits of their Social Security Number, and their data of birth was sent to a different MassHealth member.

Standard Modern Company has stopped using the internal program that caused the error, and additional safeguards have now been implemented to strengthen its mailing procedures and prevent further errors.

Each of the 2,707 affected individuals only had limited information disclosed to one other member, and there have been no reported cases of misuse of any of the disclosed information. A phone line has been established for affected individuals to find out more about the breach and have their questions answered, and complimentary access to Triple Bureau Credit Monitoring and cyber monitoring services have been offered at no charge for 24 months.

Standard Modern Company was assisted by the Buffalo, NY-based privacy and security law firm Beckage PLLC when investigating and responding to the breach.

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The Average Cost of a Healthcare Data Breach is Now $9.42 Million

IBM Security has published its 2021 Cost of a Data Breach Report, which shows data breach costs have risen once again and are now at the highest level since IBM started publishing the reports 17 years ago. There was a 10% year-over-year increase in data breach costs, with the average cost rising to $4.24 million per incident. Healthcare data breaches are the costliest, with the average cost increasing by $2 million to $9.42 million per incident. Ransomware attacks cost an average of $4.62 million per incident.

Source: IBM Security

The large year-over-year increase in data breach costs has been attributed to the drastic operational shifts due to the pandemic. With employees forced to work remotely during the pandemic, organizations had to rapidly adapt their technology. The pandemic forced 60% of organizations to move further into the cloud. Such a rapid change resulted in vulnerabilities being introduced and security often lagged behind the rapid IT changes. Remote working also hindered organizations’ ability to quickly respond to security incidents and data breaches.

According to IBM, data breaches costs were more than $1 million higher when remote work was indicated as a factor in the data breach. When remote work was a factor, the average data breach cost was $4.96 million compared to $3.89 million when remote work was not a factor. Almost 20% of organizations that reported data breaches in 2020 cited remote work as a factor, with the cost of a data breach around 15% higher when remote work was a factor.

To compile the report, IBM conducted an in-depth analysis of data breaches involving fewer than 100,000 records at 500 organizations between May 2020 and March 2021, with the survey conducted by the Ponemon Institute.

The most common root cause of data breaches in the past year were compromised credentials, which accounted for 20% of data breaches. These breaches took longer to detect and contain, with an average of 250 days compared to an overall average of 212 days.

The most common types of data exposed in data breaches were customers’ personal data such as names, email addresses, passwords, and healthcare data. 44% of all data breaches included those types of data. A data breach involving email addresses, usernames, and passwords can easily have a spiral effect, as hackers can use the compromised data in further attacks. According to the Ponemon Institute survey, 82% of individuals reuse passwords across multiple accounts.

Breaches involving customers’ personally identifiable information (PII) were more expensive than breaches involving other types of data, with a cost per record of $180 when PII was involved compared to $161 per record for other types of data.

Data breach costs were lower at companies that had implemented encryption, security analytics, and artificial intelligence-based security solutions, with these three mitigating factors resulting in data breach cost savings of between $1.25 million and $1.49 million per data breach.

Adopting a zero-trust approach to security makes it easier for organizations to deal with data breaches. Organizations with a mature zero trust strategy had an average data breach cost of $3.28 million, which was $1.76 million lower than those who had not deployed this approach at all.

“Higher data breach costs are yet another added expense for businesses in the wake of rapid technology shifts during the pandemic,” said Chris McCurdy, Vice President and General Manager, IBM Security. “While data breach costs reached a record high over the past year, the report also showed positive signs about the impact of modern security tactics, such as AI, automation and the adoption of a zero-trust approach – which may pay off in reducing the cost of these incidents further down the line.”

Security automation greatly reduces data breach costs. Organizations with a “fully deployed” security automation strategy had average breach costs of $2.90 million per incident, compared to $6.71 million at organizations that had no security automation.

Companies with an incident response team that had tested their incident response plan had 54.9% lower breach costs than those that had neither. The average data breach cost was $3.25 million compared to $5.71 million when neither were in place.

The cost of a data breach was $750,000 (16.6%) higher for companies that had not undergone any digital transformation due to COVID-19. Cloud-based data breach costs were lower for organizations that had adopted a hybrid cloud approach, with an average cost of $3.61 million at organizations with hybrid cloud infrastructure compared to $4.80 million for organizations with a primarily public cloud and $4.55 million for those that had adopted a private cloud approach. Data breach costs were 18.8% higher when a breach was experienced during a cloud migration project.

Organizations that were further into their cloud migration plan were able to detect and respond to data breaches far more quickly – on average 77 days more quickly for organizations that were at a mature state of their cloud modernization plan than those in the early stages.

Mega data breaches – those involving between 50 million and 65 million records – cost an average of $401 million per incident, which is more than 100 times the cost of breaches involving between 1,000 and 100,0000 records.

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McLaren Health Care and Greenwood Leflore Hospital Impacted by Elekta Ransomware Attack

McLaren Health Care Corporation (MHCC), the operator of 15 hospitals and over 100 primary care locations in Michigan and Ohio, has announced the protected health information of 64,600 of its cancer patients may have been compromised in a ransomware attack on vendor Elekta Inc.

Elekta provides software and technology services to MHCC facilities in Macomb, Northern Michigan, Gaylord, Cheboygan, West Branch, Lapeer, Central and Bay City, which includes data storage.

Between April 2 and April 20, 2021, Hackers had access to Elekta’s systems, exfiltrated data, then deployed ransomware to encrypt files. A ransom demand was issued, payment of which was required to decrypt data and prevent the exposure of data stolen in the attack. Elekta notified MHCC about the breach on May 17, 2021.

While patient data was affected, Elekta said it has no reason to believe that any of the stolen information will be further disclosed or published online. However, as a precaution against identity theft and fraud, complimentary identity theft protection and credit monitoring services are being offered to affected individuals.

The types of data potentially compromised in the attack included full names, Social Security numbers, addresses, dates of birth, height & weight measurements, medical diagnoses, medical treatment details, appointment confirmations, and other information MHCC collected to provide health care services.

Patients of The Cancer Center at Greenwood Leflore Hospital (CCGLH) in Mississippi have also been notified about the ransomware attack as a precautionary measure to prevent identity theft and fraud.

CCGLH was also notified by Elekta on May 17 about the ransomware attack and was told that patient data had been encrypted; however, Elekta’s forensic investigation determined there was no interactive access to the PHI and the PHI of CCGLH patients was not downloaded or transferred from the database. However, it was not possible to totally rule out the possibility of unauthorized data access and PHI theft.

The same types of information were impacted as MHCC and complimentary access to identity monitoring, fraud consultation, and identity theft restoration services is also being provided to CCGLH patients. It is currently unclear exactly how many CCGLH patients have been affected.

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Phishing Attacks Reported by UC San Diego Health and UnitedHealthcare

UC San Diego Health has discovered unauthorized individuals gained access to the email accounts of some of its employees and may have accessed or exfiltrated emails containing patient data. The email accounts were compromised as a result of employees responding to phishing emails and disclosing their email credentials.

The email environment has now been secured and additional measures have been implemented to improve security. The investigation into the breach revealed the first email account was compromised on December 2, 2020, and others were compromised up until April 8, 2020.

At this stage, no evidence has been found to indicate any emails or email attachments were subjected to unauthorized access between December 2020 and April 2021, and no reports have been received that suggest the protected health information (PHI) of patients has been misused; however, it was not possible to rule out unauthorized PHI access and data exfiltration.

The investigation into the breach is ongoing to identify exactly what happened and the information that has been affected. Notification letters will be sent to all affected individuals once the forensic investigation is completed. The full review of affected email accounts is expected to take until September. Individual notifications will be issued no later than September 30, 2021. Affected individuals will be offered a complimentary membership to credit monitoring services for 12 months.

UC San Diego Health explained in its substitute breach notice that the following types of information were contained in the compromised email accounts: full name, address, date of birth, email, fax number, claims information (date and cost of health care services and claims identifiers), laboratory results, medical diagnosis and conditions, Medical Record Number and other medical identifiers, prescription information, treatment information, medical information, Social Security number, government identification number, payment card number or financial account number and security code, student ID number, and username and password.

Community members have been warned to be vigilant and to monitor their financial accounts and explanation of benefits statements for signs of identity theft or other fraudulent activity.

UnitedHealthcare Reports Breach Affecting 2,330 Plan Members

The health plan provider UnitedHealthcare has announced the protected health information of 2,330 plan members has been exposed in a phishing attack on one of its insurance brokers – Academic HealthPlans, Inc. (AHP).

AHP identified suspicious activity in its email system on June 21, 2021. Steps were immediately taken to block further unauthorized access and an investigation was launched to determine the nature and extent of the breach. AHP determined that two employee email accounts had been compromised after the employees responded to phishing emails and that email accounts were subject to unauthorized access between August 6, 2020 and August 24, 2020 and on October 2, 2020. The security breach was limited to the Microsoft 365 cloud-based email system.

A review of the email accounts revealed they contained names, member identification numbers, Social Security Numbers, credit/debit card information, dates of birth, addresses, plan information, and claim information. Notification letters were sent to affected individuals on July 20, 2021 and a complimentary 2-year membership to identity theft protection services has been offered to affected individuals. AHP found no evidence suggesting emails in the account had been viewed or acquired.

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Florida Heart Associates Operating at 50% Capacity 2 Months After Ransomware Attack

A ransomware attack on Fort Myers, FL-based Florida Heart Associates that started around May 19, 2021 has caused serious and ongoing disruption to its services, with the medical practice only operating at around 50% capacity two months after the attack. Disruption is expected to continue for several more weeks, with the practice not expecting to fully recover until the end of next month or even early September.

Prior to the use of ransomware, the attackers exfiltrated files containing the protected health information of 45,148 patients, including Social Security numbers, member identification numbers, birth dates, and health insurance information. A ransom demand was issued to ensure the deletion of stolen data and to provide the keys to decrypt data, but the decision was taken by the practice not to pay the attackers. The ransomware gang was ejected from the network, but not before much of its IT infrastructure was rendered inoperable.

The investigation revealed its systems were first breached on May 9, 2021, with the hackers deploying ransomware on May 19, when staff were prevented from accessing files. The attack took its IT systems and phone lines out of action, with the phones having only just been brought back online.

Florida Heart Associates CEO Todd Rauchenberger said the practice is still providing care to patients and is now taking walk-in appointments. In addition to having to work without telephones and limited access to IT systems, the practice has lost many members of staff. With the reduction in staff, patients are feeling the effect. Fox4 News reports that patients have not been able to reach the practice by telephone to make appointments, and it has been difficult for many patients to get appointments with a doctor.

Florida Heart Associates has already notified patients about the breach and the exposure of their personal and health information and said it will be implementing additional measures to improve security moving forward, including technical safeguards and reviewing and updating policies and procedures with respect to data privacy and security.

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Overlake Hospital Medical Center Proposes Settlement to Resolve Data Breach Case

Overlake Hospital Medical Center in Bellevue, WA has proposed a settlement to resolve a class action lawsuit filed by victims of a December 2019 data breach that exposed patients’ demographic information, health insurance information, and health data.

The breach in question was a phishing attack that was discovered on December 9, 2019. The investigation revealed unauthorized individuals gained access to the email accounts of several employees, with one of the email accounts compromised between December 6, 2019 and December 9, 2019, and the others compromised for several hours on December 9.

The investigation did not uncover evidence of data theft or misuse of patient data, but it was not possible to rule unauthorized access to protected health information (PHI) and the exfiltration of data. The PHI of up to 109,000 patients was contained in the compromised email accounts.

Affected individuals were notified starting on February 4, 2020 and Overlake Hospital Medical Center took several steps to improve security, including implementing multi-factor authentication, changing email retention policies, and providing further training to employees. Overlake Hospital Medical Center has spent $148,590 on improvements to bolster security since the breach and has committed to further enhancements totalling $168,000 per year for the next 3 years.

The lawsuit – Richardson V. Overlake Hospital Medical Center – was filed in the Superior Court of King County in Washington, and alleged Overlake Hospital was negligent for failing to prevent unauthorized individuals from gaining access to its systems. The lawsuit also alleged intrusion upon seclusion/invasion of privacy, breach of fiduciary duty, breach of confidence, breach of express contract, and breach of implied contract. While 109,000 individuals were notified about the breach, only 24,000 individuals are included in the class as all other patients did not have their PHI exposed.

The lawsuit alleged the hospital failed to implement reasonable safeguards to ensure the privacy of HIPAA-covered data and failed to provide adequate notice about the data breach. Overlake Hospital Medical Center has denied all claims made in the lawsuit and all charges of wrongdoing. The decision was made to settle the lawsuit with no admission of liability.

Under the terms of the settlement, two types of claims can be submitted. Class members are entitled to claim up to $250 for certain out-of-pocket expenses incurred as a result of the breach, including bank fees, phone calls, postage costs, fuel for local travel, and up to three hours of documented time at $20 per hour, provided at least one full hour was spent on mitigations. It is also possible to recover the cost of credit report fees, and credit monitoring and identity theft protection services taken out between February 4, 2020 and the date of the Court’s preliminary approval of the settlement.

Claims for extraordinary expense reimbursement may be submitted for up to $2,500. These claims must include evidence of losses that were more likely than not suffered as a result of the breach between December 1, 2019 and the end of the claim period.

A fairness hearing has been scheduled for Sept. 10, 2021.

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Paperwork Containing PHI of Oklahoma Heart Hospital Patients Accidentally Donated to Charity

Oklahoma Heart Hospital has started notifying certain patients about a privacy incident in which paperwork containing limited patient information was accidentally donated to charity.

A former employee had made handwritten notes which contained the protected health information of a limited number of patients during the course of that individual’s employment at Oklahoma Heart Hospital between 2011 and 2014.

Some of the former employee’s personal possessions were donated to charity in May 2021, with the handwritten notes accidentally included in the donated items. Oklahoma Heart Hospital was contacted by the individual who found the notes and arrangements were immediately made to collect the paperwork. The documents were then cataloged to identify the patients involved and the types of information that had been exposed.

The notes included information such as patients’ names, medical record numbers, OHH visit numbers, dates of birth, ages, admit dates, genders, and clinical information consisting of diagnosis, lab results, medications and/or treatment information. No information was exposed that would have provided unauthorized individuals with access to patient record systems.

While the protected health information of some patients was viewed by an individual not authorized to view the information, Oklahoma Heart Hospital has not uncovered any evidence to suggest any patient data has been further disclosed or misused; however, out of an abundance of caution, all affected individuals have been notified by mail and advised to monitor their account and explanation of benefits statements for signs of fraudulent activity.

The privacy breach has been reported to the Department of Health and Human Services’ Office for Civil Rights as affecting 1,038 patients.

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UNC Health and Nebraska DHHS Report Phishing Attacks

The Nebraska Department of Health and Human Services has announced a security incident involving the protected health information of clients of Aging Partners, a department of the City of Lincoln.

The breach was discovered by the Lincoln Information Services Department on May 25, 2021. Employees had responded to phishing emails and disclosed credentials to their email accounts, which contained more than 46,000 emails. Assisted by a computer forensics company, it was determined that the email account was accessed by an unauthorized individual between May 18 and May 21.

A review of the emails in the account confirmed some contained patient information such as names, addresses, dates of birth, phone numbers, Social Security numbers, dates of service, type/amount of service, and some health information such as diagnoses, care assessments, and medication lists. Emails also contained bank account numbers or other financial information of a limited number of individuals. 6,600 of the emails included the PHI of Aging Partners’ clients, although only 1,513 individuals have been affected. For the majority of affected individuals, only names were included in the email accounts.

All affected individuals are now being notified and credit monitoring and identity theft protection services are being offered to individuals whose financial information was present in the compromised email accounts.

UNC Health Reports Phishing Attack

UNC Health has announced that an email account containing the protected health information of patients of University of North Carolina at Chapel Hill School of Medicine (SOM) and the University of North Carolina Hospitals (UNC Hospitals) has been accessed by an unauthorized individual.

On May 20, 2021, UNC Health discovered the email account of a SOM faculty member had been compromised. That individual provided clinical services at UNC Hospitals. The email account was immediately secured, and an investigation was launched to determine the extent of the breach. Assisted by a third-party cybersecurity firm, UNC Health determined that the email account breach was isolated to April 20, 2021 and no other email accounts or systems were involved.

A review of the account revealed the following types of information could potentially have been compromised: Patients’ names, dates of birth, diagnosis and treatment information, and/or information about a research study patients may have been involved in or have been eligible for at UNC Hospitals/SOM. The email account contained the health insurance information of fewer than 30 patients and the Social Security numbers of fewer than 10 patients. There have been no reported cases of misuse of patient data.

Additional email security measures are being implemented and employees are being provided with further training to help them identify phishing emails.

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Former Scripps Health Worker Charged Over HIPAA Violation in COVID-19 Unemployment Benefit Fraud Case

The Department of Justice has announced nine San Diego residents have been charged in two separate indictments in connection with the theft of patients’ protected information and the submission of fraudulent pandemic unemployment insurance claims.

Under the Coronavirus Aid, Relief, and Economic Security (CARES) Act of 2020, new unemployment benefits were offered to individuals affected by the COVID-19 pandemic, who would not, under normal circumstances, qualify for payments.

In one of the cases, Matthew Lombardo, a former Scripps Health employee, was charged with felony HIPAA violations for obtaining and disclosing the protected health information of patients to his alleged co-conspirators. Lombardo was also charged with conspiracy to commit wire fraud, along with three alleged co-conspirators – Konrad Piekos, Ryan Genetti, and Dobrila Milosavljevic. Piekos, Genetti, and Milosavljevic were also charged with aggravated identity theft and are alleged to have used the stolen information to submit fraudulent pandemic unemployment insurance claims.

The San Diego Sheriff’s’ Department had initiated a traffic stop on Konrad Piekos for driving without a license plate. When police officers approached the vehicle, they saw an assault rifle in plain sight in his vehicle. Piekos admitted possessing an unregistered assault rifle, and the subsequent vehicle search revealed several loaded firearms and ammunition. A warrant was obtained to search Piekos’ properties and police officers found several other firearms and ammunition, quantities of heroin and fentanyl, and mobile phones. After obtaining warrants to search the phones, detectives identified text messages between Piekos, Genetti, and Lombardo discussing the illicit distribution of narcotics, firearms, and a scheme to obtain unemployment benefits using other persons’ personal identifying information (PII).

Piekos and Genetti had conspired together to fraudulently obtain PUA benefits in July 2020, with Lombardo joining the scheme in August 2020. Lombardo is alleged to have used his position as a patient financial service representative to access patients’ PII, which he then distributed to Piekos, Genetti, and Milosavljevic starting on August 15,2020, according to the indictment. Scripps Health terminated Lombardo on April 14, 2021.

In a separate case, Genetti and three other defendants – Lindsay Renee Henning, Garrett Carl Tuggle, and Salvatore Compilati – were charged with conspiracy to commit wire fraud. Henning and Tuggle were also charged with aggravated identity theft, and Henning, Tuggle, and a fourth defendant, Juan Landon, were charged with possession of methamphetamine, cocaine, and heroin with intent to distribute. The defendants had submitted more than 108 separate claims for PUB benefits, totaling $1,615,000.

Lombardo faces a maximum jail term of 10 years in prison for the HIPAA violation along with a fine and penalty assessment. The conspiracy to commit wire fraud charges carry a maximum jail term of 20 years in prison with a fine and penalty assessment, and there is a mandatory minimum 2-year jail term for the aggravated identity theft charges, with the aggravated identity theft jail term consecutive to any other sentences.

“Pandemic unemployment insurance programs are a critical part of our safety net designed to support hardworking citizens who are suffering during an unprecedented economic downturn,” said Acting U.S. Attorney Randy Grossman. “Our office and our law enforcement partners will investigate and prosecute individuals who attempt to steal from these programs designed to assist deserving recipients.”

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