HIPAA Breach News

Blackbaud Data Breach Healthcare Victim Count Rises to Almost 1 Million

The number of healthcare providers confirmed to have been affected by the Blackbaud ransomware attack and data breach is growing, with a further four healthcare providers issuing breach notifications in the past few days.

Yesterday we reported Northwestern Memorial HealthCare had been affected and the personal information of 55,983 individuals was compromised. Now the Department of Health and Human Services’ Office for Civil Rights breach portal shows 179,189 MultiCare Health System donors and potential donors have been affected, as have 52,500 donors to Spectrum Health Lakeland Foundation, and 22,718 donors to the Richard J. Caron Foundation.

Earlier this month, Northern Light Health Foundation confirmed that the information of 657,392 donors was compromised in the breach. Catholic Health and its foundations, the University of Detroit Mercy, and Children’s Hospital of Pittsburgh Foundation are also known to have been affected by the Blackbaud data breach.

The total number of healthcare organizations affected by the breach is still not known, nor the total number of individuals impacted by the breach, but the total is rapidly approaching 1 million.

Blackbaud is one of the largest providers of fundraising database and support services for health care organizations, educational institutions, and other non-profits worldwide. The company maintains records for more than 25,000 non-profit organizations.

The ransomware attack occurred on or around May 14, 2020; however, the attackers had initially gained access to its systems several months previously in February 2020. Blackbaud took action to limit the extent of the file encryption and contained the attack by May 20, 2020. Prior to the deployment of ransomware, the attackers were able to exfiltrate a subset of data from Blackbaud’s self-hosted environment, including the platform used by many healthcare organizations for engagement and fundraising.

Blackbaud’s cloud services are extensively used by healthcare organizations the world over, including 30 of the top 32 largest nonprofit hospitals, but the company said its public cloud environment was not affected and neither was the majority of its self-hosted environment.

In the most part the breach was limited to the names of donors, individuals who had attended fundraising events in the past, and community members with relationships with the affected healthcare organizations.

In addition to names, demographic information such as addresses, dates of birth, telephone numbers, and email addresses were compromised, and in some cases, donation dates, donation amounts and other donor profile information. For the majority of affected healthcare organizations, highly sensitive information such as bank account information, credit card information, and Social Security numbers were not affected.

Blackbaud issued a statement about the breach confirming the ransom demand was paid in order to obtain the keys to decrypt data and to prevent any malicious use of the data stolen in the attack.

Based on the nature of the incident, our research, and third party (including law enforcement) investigation, we have no reason to believe that any data went beyond the cybercriminal, was or will be misused, or will be disseminated or otherwise made available publicly… We apologize that this happened and will continue to do our very best to supply help and support as we and our customers jointly navigate this cybercrime incident,” explained Blackbaud in its ransomware and data breach notification.

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Assured Imaging Ransomware Attack Affects Almost 245,000 Patients

Tucson, AZ-based Assured Imaging, a subsidiary of Rezolut Medical Imaging and provider of Health Screening and Diagnostic Services, has announced it has suffered a ransomware attack that resulted in the encryption of its medical record system.

Assured Imaging discovered the attack on May 19, 2020 and worked quickly to stop any further unauthorized access and restore the encrypted data. Assisted by a third-party computer forensics firm, Assured Imaging investigated the ransomware attack to determine the scope of the breach. The investigation revealed an unauthorized individual gained access to its systems between May 15, 2020 and May 17, 2020 and exfiltrated “limited data” prior to the deployment of ransomware.

The forensic investigation confirmed data had been stolen but it was not possible to determine exactly what information was exfiltrated by the attackers. A review was conducted to identify all types of information that could potentially have been accessed. The compromised system was found to contain full names, addresses, dates of birth, patient IDs, facility used, treating clinicians’ names, medical histories, services performed, assessments of the service performed, and recommendations on future testing.

Assured Imaging is unaware of any misuse of patient data but does encourage all affected individuals to monitor their accounts and credit reports for any sign or fraudulent activity.

The incident has been reported to law enforcement and the Department of Health and Human Services’ Office for Civil Rights. The OCR breach portal indicates up to 244,813 individuals were affected by the attack.

Email Breach Affects 6,000 Roper St. Francis Healthcare Patients

Charleston, SC-based Roper St. Francis Healthcare has data breach involving a single email account. The breach was detected on July 8, 2020, with the investigation revealing the email account was compromised between June 13, 2020 and June 17, 2020.

The forensic investigation confirmed the email account contained patients’ names, dates of birth, medical record or patient account numbers, and limited clinical and/or treatment information, including providers’ names, diagnoses, and/or procedure information. The health insurance information and/or Social Security numbers of a limited number of individuals were also stored in the email account. Approximately 6,000 patients have been affected by the breach.

Individuals whose Social Security number was compromised have been offered complimentary credit monitoring and identity theft protection services. Roper St. Francis Healthcare has reinforced training on email security and has augmented its email security measures.

This is not the first phishing attack to be reported by Roper St. Francis this year. In February, the healthcare provider announced the email accounts of 13 employees had been compromised as a result of a phishing attack between November 15 2018 and December 1, 2018.  The PHI of 35,253 patients was compromised in the breach.

Hamilton Health Center Reports Impermissible Disclosure of 10,000 Patients’ PHI

Harrisburg, PA-based Hamilton Health Center, Inc. has announced the protected health information of 10,393 individuals was impermissibly disclosed as a result of a recent phishing attack.

Hamilton Health Center learned on June 19, 2020 that a spreadsheet containing patient information had been sent to an unauthorized individual in response to a phishing email. The spreadsheet contained patients’ full names, member IDs, and dates of birth, along with one or more of the following data elements: Diagnosis, treatment, physical condition medications, dates of laboratory tests and/or examinations, and/or the name of the patient’s provider.

While the above data were impermissibly disclosed, no reports have been received to indicate any information has been misused. Affected individuals are being encouraged to monitor their explanation of benefits statements for any sign of misuse of their information.

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56,000 Northwestern Memorial HealthCare Donors Impacted by Blackbaud Ransomware Attack

Northwestern Memorial HealthCare has discovered the personal information of individuals who had previously made donations to Northwestern Memorial HealthCare was potentially compromised in the recent Blackbaud ransomware attack. An unauthorized individual first gained access to Blackbaud systems on February 7, 2020, with the access possible until May 20,2020 when ransomware was deployed.

Prior to the use of ransomware, the attacker may have accessed a backup of a database that contained names, age, gender, dates of birth, medical record number, dates of service, departments of service, treating physicians, and/or limited clinical information. The database also contained the Social Security numbers and/or financial/payment card information of 5 individuals. In total, the information of 55,983 Northwestern Memorial HealthCare donors was potentially compromised in the attack.

Northwestern Memorial HealthCare is conducting a review of its third-party database storage vendors and its relationship with Blackbaud in order to prevent similar data breaches in the future.

Names and Health Insurance Information of 15,000 Lafayette Fire Department Ambulance Users Compromised

On July 27, 2020, the City of Lafayette, CO experienced a ransomware attack that disrupted the phone, email, online payment, and reservation systems and prevented the city from accessing essential data. After assessing the cost/benefits of all options, the decision was taken to pay the $45,000 ransom rather than risk extensive disruption and damage to its online operations.

Prior to the deployment of ransomware, the attackers may have gained access to personal information stored on Lafayette’s computer network. In addition to the personal information, including Social Security numbers, of city employees, and usernames and passwords of individuals who used certain online services, the attackers potentially gained access to the names and health insurance identification numbers of 15,000 individuals who had been transported by the Lafayette Fire Department ambulance prior to January 1, 2018.

The city has cleaned and rebuilt its system servers and computers, crypto-safe backup systems have been deployed, and additional cybersecurity measures are being implemented to prevent further ransomware attacks.

Cook Children’s Medical Center Breach Impacts 1,768 Individuals

Fort Worth, TX-based Cook Children’s Medical Center has discovered a box of radiology images to be missing from a locked storage room. A search was conducted for the missing storage discs, but they could not be located. The protected health information contained on the discs was limited to names, dates of birth, medical record numbers, service dates, physician names, and scan types.

The images required specialist software to view, but some of the protected health information could have been viewed without specialist software. The images related to 1,768 individuals who had undergone hip and spine imaging between 2005 and 2014.  No reports have been received to suggest any information on the discs has been misused. All affected individuals have now been notified.

PHI of 2,102 Individuals Potentially Compromised in D&S Residential Holdings Phishing Attack

Austin, TX-based D&S Residential Holdings has discovered an unauthorized individual gained access to some employee email accounts between April 20, 2020 and June 15, 2020 as a result of responses to phishing emails.

D&S Residential Holdings conducted a comprehensive investigation, assisted by a leading computer security firm, but was unable to determine whether any information in the email accounts was accessed or stolen by the attackers.

A review of the email accounts revealed they contained protected health information. Individuals whose Social Security number was compromised in the attack have been offered 12 months of complimentary credit monitoring and identity theft protection services.  The breach report submitted to the HHS’ Office for Civil Rights indicates 2,102 individuals were affected by the breach.

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Utah Pathology Services Email Breach Potentially Affects 112,000 Patients

Utah Pathology Services has announced an unauthorized individual has gained access to the email account of an employee and attempted to redirect funds from Utah Pathology. The breach was detected promptly, the compromised email account was secured, and the attempted fraud was unsuccessful and did not involve any patient information.

Independent IT and forensic investigators were engaged to assist with the investigation and help determine the extent of the breach. The investigation is ongoing, but it has now been confirmed that the compromised email account contained the personal and protected health information of around 112,000 patients.

The purpose of the attack appears to have been to redirect funds to an account under the control of the attacker, rather than to steal patient data; however, the possibility of data theft could not be ruled out and affected individuals are now being notified about the breach.

The compromised email account contained the following types of information in addition to patient names: Gender, date of birth, mailing address, phone number, email address, health insurance information, internal record numbers, and diagnostic information related to pathology services. A small number of affected individuals had their Social Security number exposed.

No evidence of misuse of patient information has been found to date but, out of an abundance of caution, affected individuals have been offered 12 months complimentary membership to Cyberscout’s identity monitoring service.

Utah Pathology Services is reviewing its privacy and security measures and additional safeguards will be implemented, as appropriate, to prevent further breaches in the future.

Valley Health Systems Suffers Ransomware Attack

Valley Health Systems, a healthcare provider serving around 75,000 patients in southern West Virginia, southeastern Ohio and eastern Kentucky, was attacked with ransomware on or around August 22, 2020.

As is common in manual ransomware attacks, prior to the encryption of data, files were exfiltrated by the attackers and were used to pressure the healthcare provider into paying the ransom. Some of the data stolen in the attack has been published on a leak site.

Valley Health Systems continued to provide medical services to patients while recovering from the attack and patient care was unaffected. Several systems are still affected and are being slowly restored and brought back online. Third-party cybersecurity experts have been assisting with the investigation and recovery.

According to a statement VHS provided to databreaches.net, “Unfortunately, the threat actor has released some of our information. We are doing everything we can to understand what information is at risk and to protect patient information.” Databreaches.net confirmed that the attack involved Sodinikibi (REvil) ransomware.

VHS said, “We are committed to completing a full forensic review following the resolution of this outage, and we will take all appropriate action, which may include notifying affected patients, in response to our findings. We have also taken steps to notify the FBI and intend to fully cooperate with any investigation into this incident.”

The breach has yet to appear on the HHS’ Office for Civil Rights website, so it is currently unclear how many individuals have been affected.

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Former Nursing Home Employee Accused of Defrauding Residents Out of $25,000

A former nursing home employee has been accused of stealing the identities of dozens of nursing home residents and using their accounts to pay her bills.

The woman, Anna Zur, 39, of Franklin Park, IL, previously worked in the corporate office of a care facility and abused her access rights to residents’ information to obtain documents and financial information, which she sent to a personal email account. She has been accused of stealing the identities of residents and using their accounts to purchase goods and services and pay her bills.

The Palos Heights Police Department conducted a year-long investigation into cases of identity theft and fraud and issued a warrant for the woman’s arrest. She was taken into custody on August 26, 2020 and has been charged with felony counts of wire fraud and continuing a financial crimes enterprise. The woman has been linked to 35 cases of identity theft and is alleged to have defrauded individuals out of $25,000.

Patient Data Stolen in Ventura Orthopedics Ransomware Attack

The Californian healthcare provider Ventura Orthopedics has experienced a manual ransomware attack and has had patient information stolen and published online. The stolen data was identified by Databreaches.net when checking the new data leak site used by the operators of Conti-Ryuk ransomware. Data from the attack was also found on the leak site used by the Maze ransomware operators.

The dumped data was found to contain patient information such as names, dates of birth, medications, and lab test results. In total, more than 1,800 files have been leaked online.

There has been no announcement made by Ventura Orthopedics about the ransomware attack at the time of writing and no information is detailed on the HHS’ Office for Civil Rights breach portal, so it is currently unclear how many individuals have been affected by the attack.

Comanche County Hospital Authority Impacted by Magellan Health Ransomware Attack

Comanche County Hospital has announced that the protected health information of 1,112 individuals was compromised in the ransomware attack on the pharmacy benefits vendor, Magellan Health in April 2020.

Magellan Health’s investigation revealed limited health information of benefit plan members was compromised in the attack such as names, addresses, payment, health insurance account information, and treatment information. No Social Security numbers or financial information were compromised.

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Dynasplint Systems Data Breach Impacts Almost 103,000 Individuals

Severna Park, MD-based Dynasplint Systems, a manufacturer of proprietary stretching devices to improve joint motion, has experienced a cyberattack in which personal and protected health information may have been accessed or stolen.

The security breach occurred on May 16, 2020. Assisted by a digital forensics firm, Dynasplint Systems determined on June 4, 2020 that information such as names, addresses, dates of birth, Social Security numbers, and medical information was accessed by the attackers. The cyberattack was reported to the FBI and Dynasplint Systems is cooperating with the investigation to hold the individuals responsible accountable.

The breach report submitted to the Department of Health and Human Services’ Office for Civil Rights indicates 102,800 individuals were potentially affected by the attack. Those individuals were notified on August 8, 2020 and have been offered complimentary identity monitoring and recovery services for 12 months through Kroll.

Texas Medical Clinical Research Organization Suffers Phishing Attack

Pinnacle Clinical Research, a San Antonio, TX-based medical clinical research organization that runs hepatological and gastroenterological clinical trials in San Antonio and Austin, TX has announced it has suffered a phishing attack.

The email account breach was detected in April 2020. Assisted by independent IT security and forensic investigators, Pinnacle Clinical Research determined on or around May 8, 2020 that the compromised email account contained the sensitive information of clinical trial participants.

The breach was limited to a single email account which was found to contain information such as names, mailing addresses, telephone numbers, medical histories, and treatment information. A subset of affected individuals may also have had one or more of the following data elements exposed: Date of birth, Social Security number, driver’s license number, state ID number, taxpayer ID number, passport number, credit card/financial account number, associated PIN or password, email address, and/or health insurance individual policy number.

The compromised email account was immediately secured when the breach was discovered and steps have since been taken to improve the privacy and security of information stored in its systems. Affected individuals have been offered complimentary identity theft protection and credit monitoring services for 12 months.

Phishing Attack Reported by the Institute for Integrative Nutrition

The Institute for Integrative Nutrition in New York City has discovered personal information has potentially been compromised in a March 2020 phishing attack. The email account breach was detected on June 22, 2020. The investigation revealed a single email account was accessed by an unauthorized individual between March 3-4, 2020.

Third party cybersecurity professionals assisted with an extensive forensic investigation and the manual document review confirmed that names and personal information, including Social Security numbers, had potentially been accessed, although no evidence was found suggesting data were stolen in the attack.

Out of an abundance of caution, affected individuals have been offered complimentary identity theft protection services and “significant measures” have been implemented to prevent further breaches in the future.

PHI Potentially Compromised in Phishing Attack on Colorado Mental Health Center

Lafayette, CO-based Mental Health Center of Boulder County Inc., aka Mental Health Partners, experienced a phishing attack in late March in which employee information and the protected health information of some of its clients were potentially compromised.

Assisted by forensic investigators, Mental Health Partners determined on July 22, 2020 that the following information may have been subjected to unauthorized access or could have been stolen in the attack: names; dates of birth; Social Security numbers; driver’s license or state identification card numbers; passport numbers; financial account information; medical record numbers; medical treatment information, including symptom, diagnosis, treatment, medication, and doctor information; and/or health insurance information.

Affected individuals have been offered complimentary credit monitoring services. No evidence was found to indicate data were stolen or misused. Mental Health Partners has reviewed its internal policies and procedures following the attack and additional safeguards are being implemented to enhance digital security.

Boxes of Medical Records Found at Texas Recycling Center

More than 2 dozen boxes of old medical records have been found at an Odessa, TX recycling center. The records appear to have come from West Texas Orthopedics, which is part of Midland Health. It is not known how the records came to be at the recycling center and why they were not disposed of securely in accordance with HIPAA Rules.

“We have a team on-site at Odessa Recycling Center. They have looked through all records and determined that they do not belong to us. The name West Texas Orthopedics has been used by other entities in the past, but these records predate our ownership,” said Midland Health in a statement issued about the breach.

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AI Company Exposed 2.5 Million Patient Records Over the Internet

The personal and health information of more than 2.5 million patients has been exposed online, according to technology and security consultant Jeremiah Fowler.

The records were discovered on July 7, 2020 in two folders that were publicly accessible over the Internet and required no passwords to access data. The folders were labeled as “staging data” and had been hosted by an artificial intelligence company called Cense AI, a company that provides SaaS-based intelligent process automation management solutions. The folders were hosted on the same IP address as the Cense website and could be accessed by removing the port from the IP address, which could be done by anyone with an Internet connection. The data could have been viewed, altered, or downloaded during the time it was accessible.

An analysis of the data suggests it was collected from insurance companies and relate to individuals who had been involved in automobile accidents and had been referred for treatment for neck and spinal injuries. The data was quite detailed and included patient names, addresses, dates of birth, policy numbers, claim numbers, diagnosis notes, payment records, date of accident, and other information. The majority of individuals in the data set appeared to come from New York. In total, there were 2,594,261 records exposed across the two folders.

Fowler identified extremely uncommon names and performed a Google search to verify those individuals were real, checking the name, region and demographic data. Fowler was satisfied that this was a real data set and not dummy data. Fowler made contact with Cense via email and while no response was received, the data was no longer accessible on July 8, 2020.

Fowler suspects that the data had been temporarily loaded into a storage repository prior to being loaded into Cense’s management or AI system. There was no way of determining how long the data had been exposed.

Currently, there is no breach notice on the Cense website and the incident has not appeared on the HHS’ Office for Civil Rights website. Fowler said he only accessed a limited amount of data for verification purposes and did not download any patient information; however, during the time the folders were exposed, it is possible that other individuals may have found and downloaded the data.

Data leaks such as this are all too common. Misconfigurations of cloud resources such as S3 buckets and Elasticsearch instances frequently leave sensitive data exposed. Cybercriminals are constantly searching for exposed data and it does not take long for data to be found. Once study conducted by Comparitech showed that it takes just a few hours for exposed Elasticsearch instances to be found.

Cloud services offer many advantages over on-premises solutions, but it is essential for protections to be put in place to secure any cloud data and for policies and procedures to be implemented to allow misconfigurations to be rapidly identified and corrected.

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July 2020 Healthcare Data Breach Report

July saw a major fall in the number of reported data breaches of 500 or more healthcare records, dropping below the 12-month average of 39.83 breaches per month. There was a 30.8% month-over-month fall in reported data breaches, dropping from 52 incidents in June to 36 in July; however, the number of breached records increased 26.3%, indicating the severity of some of the month’s data breaches.

 

1,322,211 healthcare records were exposed, stolen, or impermissibly disclosed in July’s reported breaches. The average breach size was 36,728 records and the median breach size was 6,537 records.

Largest Healthcare Data Breaches Reported in July 2020

14 healthcare data breaches of 10,000 or more records were reported in July, with two of those breaches involving the records of more than 100,000 individuals, the largest of which was the ransomware attack on Florida Orthopaedic Institute which resulted in the exposure and potential theft of the records of 640,000 individuals. The other 100,000+ record breach was suffered by Behavioral Health Network in Maine. The breach was reported as a “malware” attack that prevented records from being accessed. 129,871 healthcare records were compromised in that attack.

Name of Covered Entity State Covered Entity Type Individuals Affected Type of Breach
Florida Orthopaedic Institute FL Healthcare Provider 640,000 Hacking/IT Incident
Behavioral Health Network, Inc. MA Healthcare Provider 129,571 Hacking/IT Incident
NCP Healthcare Management Company MA Business Associate 78,070 Hacking/IT Incident
Walgreen Co. IL Healthcare Provider 72,143 Theft
Allergy and Asthma Clinic of Fort Worth TX Healthcare Provider 69,777 Hacking/IT Incident
WellCare Health Plans FL Health Plan 50,439 Unauthorized Access/Disclosure
Maryland Health Enterprises DBA Lorien Health Services MD Healthcare Provider 47,754 Hacking/IT Incident
Central California Alliance for Health CA Health Plan 35,883 Hacking/IT Incident
University of Maryland Faculty Physicians, Inc. / University of Maryland Medical Center MD Healthcare Provider 33,896 Hacking/IT Incident
Highpoint Foot & Ankle Center PA Healthcare Provider 25,554 Hacking/IT Incident
Accu Copy of Greenville, Incorporated NC Business Associate 21,800 Hacking/IT Incident
CVS Pharmacy RI Healthcare Provider 21,289 Loss
Owens Ear Center TX Healthcare Provider 19,908 Unauthorized Access/Disclosure
University of Utah UT Healthcare Provider 10,000 Hacking/IT Incident
Rite Aid Corporation PA Healthcare Provider 9,200 Theft

Causes of July 2020 Healthcare Data Breaches

Hacking and other IT incidents dominated the breach reports in July, accounting for 69.4% (25 incidents) of the month’s breaches and 86.3% of breached records (1,141,063 records). The mean breach size was 45,643 records with a median size of 7,000 records.

There were 6 unauthorized access/disclosure incidents reported. 76,553 records were breached in those incidents, with a mean breach size of 12,759 records and a median size of 2,123 records.  There were 4 breaches categorized as theft involving the PHI/ePHI of 83,306 individuals. The mean breach size was 20,827 records and the median breach size was 5,332 records. One loss incident was reported that involved the PHI/ePHI of 20,827 individuals.

Many pharmacies across the United States were looted during the period of civil unrest in the wake of the death of George Floyd, with the Walgreens, CVS, and Rite Aid pharmacy chains hit particularly hard. In addition to the theft of prescription medications, devices containing ePHI and paperwork containing sensitive patient information were also stolen in the break-ins.

Phishing attacks usually dominate the healthcare breach reports and while email-related breaches were the most common type of breach in July, network server breaches were in close second, most commonly involving the use of malware or ransomware. The increase in the latter is certainly a cause of concern, especially considering the rise in human-operated ransomware attacks that involve the theft of patient data prior to file encryption. These attacks see patient data exposed or sold if the ransom is not paid, but there is no guarantee that stolen data will be deleted even if the ransom is paid. Phishing and ransomware attacks are likely to continue to be the leading causes of data breaches over the coming months.

Spam filters, web filters, and end user training are essential for reducing susceptibility to phishing attacks, along with multi-factor authentication on email accounts. Ransomware and other forms of malware are commonly delivered by email and these measures are also effective at blocking attacks. It is also essential for vulnerabilities to be patched promptly. Many of the recent ransomware attacks have involved the exploitation of vulnerabilities, even though patches to address the flaws were released several weeks or months prior to the attacks. Brute force tactics continue to be used on RDP, so it is essential for storing passwords to be set. Human operated ransomware attacks often see attackers gain access to healthcare networks weeks before ransomware is deployed. By monitoring networks and event logs for anomalous user behavior, it may be possible to detect and block an attack before ransomware is deployed.

Healthcare Data Breaches by Covered Entity Type

There were 26 data breaches reported by healthcare providers in July 2020, 4 by health plans, and 6 breaches were reported by business associates of HIPAA-covered entities. A further three breaches were reported by a covered entity but had some business associate involvement.

July 2020 Healthcare Data Breaches by State

The 36 data breaches were reported by HIPAA-covered entities and business associates in 21 states. California and Texas were worst affected with 4 breaches apiece, followed by Florida and Pennsylvania with three breaches, and two breaches in each of Illinois, Massachusetts, Maryland, North Carolina, and Wisconsin. One breach was reported in each of Alaska, Arizona, Colorado, Connecticut, Michigan, Nebraska, New Mexico, New York, Ohio, Rhode Island, Utah, and West Virginia.

HIPAA Enforcement in July 2020

The HHS’ Office for Civil Rights has issued multiple notices of enforcement discretion this year spanning the duration of the nationwide COVID-19 public health emergency; however, that does not mean that OCR has scaled back enforcement of HIPAA Rules. OCR accepts that it may be difficult to ensure continued compliance with all aspects of HIPAA Rules during such difficult times, but entities that are discovered to have violated the HIPAA Rules can and will still face financial penalties for noncompliance.

In July, OCR announced two settlements had been reached with HIPAA covered entities to resolve HIPAA violation cases. A settlement of $1,040,000 was agreed with Lifespan Health System Affiliated Covered Entity to resolve HIPAA violations discovered during the investigation of a 2017 breach report submitted following the theft of an unencrypted laptop computer.

OCR discovered multiple compliance failures. Lifespan had not implemented encryption on portable devices that stored ePHI, even though Lifespan was aware of the risk of ePHI exposure. There were also device and media control failures, the failure to enter into business associate agreements with vendors, and an impermissible disclosure of 20,431 patients’ ePHI.

Metropolitan Community Health Services dba Agape Health Services was investigated over a 2011 data breach of 1,263 patient records and OCR discovered longstanding, systemic noncompliance with the HIPAA Security Rule. A settlement of $25,000 was agreed with OCR to resolve the violations, with the small size of the healthcare provider taken into consideration when determining an appropriate penalty amount.

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R1 RCM Medical Collection Agency Suffers Ransomware Attack

One of the largest medical debt collection agencies in the United States has suffered a ransomware attack. Chicago-based R1 RCM, formerly Accretive Health Inc., generated $1.18 billion in revenue in 2019 and works with more than 750 healthcare clients. It is currently unclear how many of its clients have been affected by the attack.

The breach was recently reported by Brian Krebs of Krebs on Security. R1 RCM confirmed that it was attacked with ransomware and its systems were taken down in response to the attack. Recovery efforts are ongoing.

No information has been released on the type of ransomware used in the attack and it is unclear if patient data was stolen prior to files being encrypted. Krebs spoke to a source close to the investigation who suggested the ransomware used in the attack was Defray. Defray ransomware is usually spread via malicious Word documents sent via email in small, targeted campaigns. The threat actors behind the ransomware have previously targeted education and healthcare verticals.

In 2019, the medical debt collection agency, American Medical Collection Agency (AMCA), was attacked with ransomware. Prior to data encryption, approximately 27 million records were stolen, making it the largest data breach of the year. The cost of the attack proved too much, and AMCA was forced into bankruptcy. With many more clients than AMCA, this ransomware attack has the potential to be far larger, although the operators of Defray ransomware are not known to steal data prior to file encryption.

Beaumont Health Phishing Attack Impacts 6,000 Patients

Beaumont Health, Michigan’s largest healthcare system, has started notifying 6,000 patients that some of their protected health information may have been accessed by unauthorized individuals as a result of a phishing attack.

Unauthorized individuals gained access to multiple employee email accounts between January 3, 2020 and January 29, 2020. Beaumont Health learned on June 5, 2020 that one or more of the breached email accounts contained patient data, including names, dates of birth, diagnoses, diagnosis codes, procedures performed, treatment location, treatment type, prescription information, Beaumont patient account numbers, and Beaumont medical record numbers. Affected patients were notified about the breach on July 28, 2020.

This is the second phishing-related breach to be reported by Beaumont Health in 2020. In April, 112,000 individuals were notified about a separate phishing attack that occurred in 2019. Following the attacks, Beaumont Health took significant steps to improve email security, including improving its multi-factor authentication software, conducting a risk analysis, and providing additional training and education to Beaumont employees on the identification and handling of malicious emails. Changes have also been made to internal policies and procedures to identify and remediate future threats to minimize the risk of a similar incident occurring in the future.

PHI of 3,736 Patients Potentially Compromised in Phishing Attack on The Connection, Inc.

The Connection, Inc., a Middletown CT-based provider of community-based behavioral health and substance use services, has discovered the email accounts of two of its employees have been accessed by unauthorized individuals. The security breach was discovered on February 13, 2020 when one of the employees started experiencing problems with their email account. The subsequent investigation confirmed that two email accounts had been breached between January 4, 2020 and February 13, 2020.

The individual(s) behind the attack attempted to change employees’ direct deposit information through payroll. While that appears to be the sole purpose of the attack, The Connection, Inc. could not rule out the possibility that information in the email accounts was stolen.

The email accounts contained information on current and former clients including names, dates of birth, mailing addresses, Social Security numbers, driver’s license numbers, financial account information medical record or patient account numbers, treatment and clinical information, prescription information, diagnoses, provider names, dates of treatment, and/or affiliation with The Connection. The Connection is unaware of any attempted misuse of client information.

Notification letters started to be sent to affected individuals on July 24, 2020. Individuals whose Social Security number was compromised have been offered complimentary credit monitoring and identity protection services.

The Connection has provided further training to the workforce on cybersecurity and multi-factor authentication has been implemented on email accounts.

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