HIPAA Breach News

Urology Practice Pays $75,000 Ransom to Regain Access to Computer Systems

Boardman, OH-based N.E.O Urology has experienced a severe ransomware attack that has impacted its entire IT system. The ransomware caused widespread file encryption and locked the healthcare provider out of its computers and patient records.

While the attack was sophisticated, the notification was not. The healthcare provider was sent a fax from the attackers which demanded a $75,000 ransom payment for the keys to unlock the encryption.

N.E.O Urology contacted its IT service provider and after assessing options and the risks, the decision was taken to pay the ransom. The IT service provider made contact with the attackers through a third party and the ransom was paid to obtain the keys to unlock the encryption. Even with the decryption keys, it took the medical practice three days to restore its computer systems due to the severity of the attack and extent of the encryption. The initial investigation suggests the attackers were based in Russia.

Payment of a ransom is not without risk. The attackers may not be able to unlock files or may choose not to do so even after the ransom is paid. The FBI’s advice is never to pay the ransom as it just encourages further attacks. However, when data cannot be recovered by any other means, there may be little choice other than payment of the ransom. N.E.O Urology informed the police department that as a result of the lack of access to its computers it was losing between $30,000 and $50,000 per day.

Ransomware attacks significantly declined throughout 2018, but in Q1, 2019 there was a major uptick in attacks. Ransomware attacks increased 195% in Q1, 2019, according to Malwarebytes. More than 70% of those attacks were on small businesses. Healthcare organizations are an attractive target due to their need to have constant access to databases and patient records and are commonly attacked, much more than other industry sectors.

The inability to restore files from backups and the refusal to pay a ransom can have severe consequences. Earlier this year, Brookside ENT and Hearing Center was attacked and patient records were encrypted. After refusing to pay the ransom, the attackers deleted all the encrypted files. Faced with having to rebuild the practice from scratch, the owners chose early retirement and closed the practice.

To ensure you are not left at the mercy of cybercriminals, it is essential to adopt a robust backup strategy that sees multiple backup copies created, with one copy stored off-site in a secure location on a non-networked device and to test your backups to make sure that file recovery is possible in the event of an attack.

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Alabama Jury Awards Woman $300,000 Damages over HIPAA Breach

A woman in Alabama has been awarded $300,000 in damages after a doctor illegally accessed and disclosed her protected health information to a third party.

Plaintiff Amy Pertuit filed a lawsuit against Medical Center Enterprise (MCE) in Alabama, a former MCE physician, and an attorney over the violation of her privacy in January 2015.

According to lawyers for the plaintiff, Amy Pertuit’s husband was experiencing visitation issues and was involved in a custody battle with his former wife, Deanna Mortenson.

Mortenson contacted Dr. Lyn Diefendfer, a physician at MCE, and convinced her to obtain health information about Amy Pertuit for use against her husband in the custody battle. The information was disclosed to Mortenson’s attorney, Gary Bradshaw.

Dr. Diefendfer accessed Pertuit’s records through the Alabama Prescription Drug Monitoring Program website. Since Dr. Diefendfer had no treatment relationship with Pertuit, she was not authorized to access her medical information. The access and disclosure were violations of hospital policies and HIPAA Rules.

After discovering that her health information had been disclosed, Pertuit lodged a complaint with the Department of Health and Human Services’ Office for Civil Rights which put the hospital on notice. However, the hospital failed to implement appropriate sanctions against Diefendfer. Dr. Diefendfer is alleged to have accessed further health information in 2016 and again disclosed that information to Bradshaw.

The plaintiff’s lawyers also said that the hospital’s privacy officer had investigated Dr. Diefendfer and discovered 22 separate violations of hospital policies and HIPAA Rules.

The lawsuits filed against Dr. Diefender, Deanna Mortensen, and Gary Bradshaw were all settled out of court. The case against MCE went to a jury trial.

The jury unanimously found that MCE had failed to take appropriate action against Dr. Diefender after the discovery of the privacy violation, and awarded the plaintiff $295,000 in punitive damages and a further $5,000 as compensation for pain, suffering, and humiliation.

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PHI Exposed in Union Labor Life Insurance Phishing Attack

The Ullico Inc. subsidiary, Union Labor Life Insurance (ULLI), is notifying more than 87,000 plan members that some of their protected health information (PHI) has been exposed as a result of an employee responding to a phishing email.

As is often the case in healthcare phishing attacks, the phishing email was realistic and appeared to be a genuine request from a business partner. The email contained a hyperlink which asked for login credentials to be entered when clicked. The employee entered the credentials, which were harvested by the attacker and used to remotely access the account.

ULLI had systems in place which alerted the information technology department to the unauthorized access. The IT department blocked third-party access to the account within 90 minutes of the account being compromised on April 1, 2019 and disconnected the device from the network. The prompt action greatly limited the potential for the accessing or theft of protected health information contained in emails and email attachments.

ULLI conducted a forensic analysis and determined that access was limited to a single email account on one device. However, that email account was confirmed to contain the PHI of plan members in emails and email attachments.

While the investigation found no evidence to suggest patient information was accessed or stolen, the possibility could not be ruled out with a sufficiently high degree of certainty.

The protected health information that was potentially compromised was limited to: Names, addresses, dates of birth, Social Security numbers, and some personal health information of plan members and their family members.

As a precaution, ULLI has taken the decision to offer all affected individuals 24 months of complimentary credit monitoring and identity theft protection services.

According to the breach report submitted to the Department of Health and Human Services’ Office for Civil Rights, up to 87,400 patients have been affected by the breach.

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Nurse Fired over Alleged Theft and Impermissible Disclosure of PHI

A former employee of a Germantown, MD-based healthcare provider is suspected of accessing the protected health information of up to 16,542 patients and providing that information to a third party for use in fraudulent activities.

On April 10, 2019, Takai, Hoover & Hsu, P.A., which runs THH Paediatrics in Germantown, was notified by county and state police that an individual had been arrested as part of an investigation in a matter unrelated to THH.

That individual was associated with an employee of THH who is suspected of accessing and impermissibly disclosing patient information including names, dates of birth, Social Security numbers, and addresses of the parents of patients.

Immediate action was taken by THH to investigate the allegations. Access to patient data was restricted for the employee, who was placed on leave on April 16 pending the outcome of the internal and law enforcement investigations.

The former employee has not been charged at this stage and no direct evidence has been found to suggest that any patient information was taken and misused; however, THH took the decision to fire the employee on May 3, 2019 after receiving further information from law enforcement. The matter has also been reported the Maryland Board of Nursing.

THH has hired a computer forensics company to conduct a detailed investigation of its computer systems to determine what, if any, protected health information has been accessed and whether information was copied.

Monroe County Hospital Notifies 10,970 Patients About PHI Breach at Navicent Health

Monroe County Hospital (MCH) in Forsyth, GA, is notifying 10,970 patients that some of their PHI may have been compromised in a security breach at one of its vendors.

On March 26, 2019, the hospital was informed by Navicent Health that some patient information was potentially compromised in a recent cyberattack. An unauthorized individual had gained access to the email accounts of several Navicent Health employees and potentially accessed MCH patient data. This was part of a much larger breach affecting more than 278,000 patients.

The forensic investigation revealed the following PHI may have been compromised: Names, addresses, dates of birth, medical record numbers, limited health information, and for certain individuals, driver’s license numbers or Social Security numbers.

All affected individuals were mailed notification letters on May 24.

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PHI Potentially Compromised at Rosenbaum Dental Group and Kingman Regional Medical Center

Kingman Regional Medical Center (KRMC) has discovered a flaw on its website resulted in the exposure of the protected health information (PHI) of certain patients.

KRMC became aware of the security issue on April 8, 2019 and the website was shut down while the security problem was investigated. Assisted by a third-party computer forensics company, KRMC determined that the configuration of the website was such that unauthorized individuals may have been able to gain access to patient information.

The website was housed on an isolated server, so any access to data was limited to the information stored on the server. For a small subset of patients who used the website to enter information related to their care, such as making an appointment, could have had the following information exposed: Name, date of birth, and information supplied related to a medical condition for which medical services were being requested.

Affected patients were notified of the breach by mail on June 7, 2019. The KRMC website has been offline now for more than 2 months. KRMC is in the process of rebuilding the website with enhanced privacy and security safeguards.

Rosenbaum Dental Group Discovers Malware Infection

Rosenbaum Dental Group is notifying some of its patients that it has discovered malware on its systems, through which unauthorized individuals may have gained access to their protected health information.

The types of information stored on the affected system included names, addresses, telephone numbers, and health insurance information.

It was not possible to determine whether patients’ PHI was compromised in the malware attack. All patients who have potentially been affected have been notified by mail and have been offered one year’s membership to credit monitoring and reporting services at no charge.

A breach notice has been submitted to the Department of Health and Human Services Office for Civil Rights, but it has yet to appear on the OCR breach portal. It is therefore currently unclear how many individuals have been affected.

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Mercy Health Discovers PHI of 978 Patients Was Exposed

Mercy Health has discovered a limited amount of patient data had been saved on a private server which was used for other activities such as online scheduling and electronic physician office check-ins. As a result, patient information could potentially have been accessed by unauthorized individuals.

The issue has been corrected and all patient information has now been secured. The investigation did not uncover any evidence of unauthorized access or data theft, but it was not possible to rule out either with a very high degree of certainty.

Patient information was accessible on the server from an unspecified date in 2014 to March 25, 2019, when the problem was detected and rectified. The security issue only affected certain individuals who had received medical services at Mercy Health facilities in Grand Rapids or Muskegon in Michigan.

The types of information potentially accessed were limited to names, addresses, email addresses, and health insurance information for the vast majority of affected individuals. A limited number of patients may also have had their Social Security number and diagnosis information exposed.

The incident has been reported to the appropriate authorities and affected individuals have been sent breach notification letters.  According to the breach summary on the HHS’ Office for Civil Rights website, the protected health information of 978 patients was exposed.

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Delta Health Systems Alerts Plan Members to Exposure of SSNs Over Internet

Employees of Turlock Irrigation District in California who are members of their employer-sponsored health plan are being notified that some of their protected health information has been exposed online as a result of an error at a business associate.

Delta Health Systems (DHS) provides administrative services related to the health plan and requires access to certain protected health information. Some of that information was made accessible over the internet through a link to a DHS webpage.

The error was made by third-party website developer. While the website had been configured to restrict access, there was a conflicting setting which provided general access to the document which took precedence.

Affected plan members have been told that their billing statement for their employee-sponsored health plan could have been accessed by unauthorized individuals during the time it was accessible over the internet. The billing statement contained the plan member’s first and last name, employer’s name and address, DHS ID number, and Social Security number.

All affected members have been offered one year of free membership to credit monitoring and identity theft protection services through Experian.

The issue was identified and corrected on April 18, 2019. It was not possible to determine when the error was introduced and for how long plan members’ personal information was exposed. It was not possible to determine whether any unauthorized individuals accessed the billing statements while they were unprotected.

In addition to correcting the problem, DHS has contacted search engines to request the removal of all cached content. DHS is also revising its security policies and procedures and has built a new, more secure website that lacks the software that was misconfigured.

The incident has been reported to the California Attorney General but has not yet been listed on the HHS’ Office for Civil Rights website, so it is currently unclear how many plan members have been affected.

Ellwood City Medical Center Investigating Cyberattack

Officials at Ellwood City Medical Center, in Ellwood City, PA, are currently investigating a cyberattack that compromised part of its systems. The attack appears to have started on or around Saturday May 27, although at this stage, no further information has been released. Analyses are ongoing to determine whether any patient records have been compromised.

The cyberattack comes at a time when the Americore Health-owned medical center is embroiled in problems associated with billing and payroll and is being investigated over late payments of wages to staff.

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AMCA Data Breach Tally Passes 20 Million as BioReference Laboratories Added to List of Impacted Entities

The total number of victims of the American Medical Collections Agency (AMCA) data breach has now passed 20 million, as yet another healthcare organizations has been confirmed as being affected by the breach.

New Jersey-based laboratory and clinical testing company BioReference Laboratories is the latest confirmed victim, with approximately 422,600 of its customers having had their personal information exposed in the AMCA data breach.

BioReference Laboratories joins Quest Diagnostics/Optum360 (11.9 million records) and LabCorp (7.7 million records), with the total number of compromised records now standing at 20,022,600 records. That number may well continue to grow as the investigation progresses and more healthcare entities are notified that their data has also been compromised.

BioReference Laboratories confirmed the breach in an 8-K Security and Exchange Commission (SEC) filing on Monday. The OPKO Health subsidiary was notified it has been impacted by the breach on June 3, 2019.

The breach at AMCA occurred between August 1, 2018 and March 30, 2019, during which time hackers had access to the AMCA web payment page, which included data of several healthcare clients.

Patients who had received BioReference Laboratories testing services had the following information compromised: Name, address, phone number, date of birth, date of service, email address, provider information, balance information, and bank account information. No Social Security numbers, medical information, test results, or passwords/security questions and answers were exposed.

AMCA has confirmed that approximately 6,600 customers of BioReference Laboratories whose financial information has been exposed have been notified by AMCA and offered complimentary credit monitoring and identity theft protection services for 2 years.

As is the case with the other affected entities, only basic information has so far been provided by AMCA. No company affected by the breach has so far been provided with full details of the individuals affected, so breach notification letters cannot yet be sent.

BioReference Laboratories said it is attempting to obtain further information about the breach from AMCA and when that information is received additional steps will be taken. BioReference Laboratories notes that no collection requests have been sent to AMCA since October 2018 and a request has been submitted to AMCA to stop working on any pending collections requests.

Several state Attorneys General have confirmed that they have launched investigations and have contacted AMCA and the breached entities demanding further information.

“This data breach is yet another example of how fragile our information infrastructure is, and how vulnerable all of us are to cyber hacking,” said Michigan Attorney General Dana Nessel. “Here in Michigan, we continue to rely on media reports that alert us to these terrible situations because – unlike most other states – we have no law on the books that requires that our office be notified when a breach occurs.”

Nessel is particularly concerned about the length of time hackers had access to the AMCA payment page before the breach was detected and that the attack appears to have been conducted specifically to obtain sensitive patient information, which places affected individuals at a high risk of fraud.

New York Attorney General Letitia James, Minnesota Attorney General Keith Ellison, and North Carolina Attorney General Josh Stein have also confirmed that they have started investigating the data breach. Two New Jersey senators have also demanded answers New Jersey-based Quest Diagnostics. However, it appears that the affected companies are still very much in the dark about what exactly has happened and who has been affected. Only limited information has been provided as AMCA continues to investigate.

AMCA has confirmed it has already taken steps to improve security, including taking its web payments page offline, migrating its services to another third-party vendor, and has hired a cybersecurity firm to assess cybersecurity protections and install additional security measures. Third-party forensics experts are continuing to investigate the breach and identify other data that may have been affected.

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Misconfigured University of Chicago Medicine ElasticSearch Instance Exposed More Than 1.68 Million Records

It is certainly a week of massive data breaches. 11.9 million Quest Diagnostics records were exposed, 7.7 million records at LabCorp have potentially been compromised, and now University of Chicago Medicine has discovered more than 1.68 million of its records have been exposed.

The records were stored on a misconfigured ElasticSearch server which had had protections removed allowing it to be accessed over the internet without the need for any authentication. The misconfiguration allowed a database to be accessed which contained 1,679,993 records of donors and prospective donors.

The exposed database was discovered by Security Discovery researcher Bob Diachenko on May 28. Diachenko had performed a search using the search engine Shodan to identify unsecured databases. Even though awareness has been raised following the discovery of a large number of exposed ElasticSearch instances and other NoSQL databases in recent months, Security Discovery researchers are still identifying between 5 and 10 ‘big cases’ of unsecured databases every month.

The latest find was a sizable cluster containing 34GB of data. The cluster, named data-ucmbsd2, had been indexed by Shodan and could be accessed over the internet by anyone. The database contained a range of information including names, addresses, phone numbers, email addresses, dates of birth, gender, marital status, wealth information and current financial status, and notes about past communications.

Diachenko determined that the data belonged to UC Medicine and sent a notification and the ElasticSearch instance was secured within 48 hours.

UC Medicine has issued a statement confirming a comprehensive forensic investigation was conducted, which determined the database was not subjected to unauthorized access other than by Diachenko. Diachenko confirmed that he only accessed some of the records to determine who they belonged to and did not download the database. Fortunately, the window of opportunity was short. Diachenko discovered the database one day after it had been indexed by Shodan.

ElasticSearch instances should be configured so they are only accessible over an internal network and authentication controls should be implemented to ensure only authorized individuals have access. Misconfigurations not place data at risk of theft, there have also been instances where the lack of authentication has allowed hackers to encrypt databases using ransomware or even totally delete all stored data.

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