HIPAA Breach News

Capital Health’s New Jersey Hospitals Affected by Cyberattack

Capital Health has launched an investigation into a cybersecurity incident that caused it to experience a network outage earlier in the week. Law enforcement has been notified and third-party cybersecurity experts have been engaged to determine the extent and scope of the incident.

Capital Health operates two hospitals in New Jersey, Capital Health Medical Center – Hopewell and Capital Health Regional Medical Center in Trenton, as well as an outpatient facility in Hamilton Township. Capital Health’s IT team took immediate action to contain the incident and prevent further unauthorized access to its network and it is currently working around the clock to bring systems and data back online.

Capital Health is operating under established downtime protocols while access to electronic systems is not possible, with patient information recorded on paper charts. Capital Health said care continues to be provided to patients and its emergency rooms have remained open, although it was necessary to make some changes to elective surgical and procedure schedules, with some patients’ surgeries delayed, although the impact on surgical schedules is now minimal. Capital Health said outpatient radiology is still unavailable and neurophysiology and non-invasive cardiology testing is being rescheduled. All surgeries are being prioritized based on urgency and the critical nature of the patient’s condition.

Capital Health was unable to provide a timescale for the recovery process but anticipates operating on limited systems for at least the next week. The nature of the attack has not been disclosed and, at this stage of the investigation, it is too early to tell to what extent, if any, patient data has been affected. Capital Health said no evidence of unauthorized data access or data theft has been identified at this time. Further information on the incident will be released as the investigation progresses.

This is the second major cyberattack to affect New Jersey hospitals in the past week. On Thanksgiving Day, Hackensack Meridian Health confirmed that it was experiencing a network outage that affected two of its hospitals – Hackensack Meridian Mountainside Medical Center in Montclair and Hackensack Meridian Pascack Valley Medical Center in Westwood. Both hospitals are operated under a joint venture with Ardent Health Services. which experienced a ransomware attack last week that affected several of its hospitals.

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NY Attorney General Warns New Yorkers About Identity Theft Risk from PJ&A Data Breach

At least 4 million New Yorkers in New York City and Syracuse had their sensitive information stolen in a data breach at the Nevada medical transcription service provider Perry Johnson & Associates (PJ&A). The PJ&A data breach was announced earlier this month and has affected almost 9 million individuals across the United States. While the breach has recently been announced, hackers first gained access to PJ&A’s systems in May 2023. Hackers had access to data such as names, addresses, dates of birth, medical record numbers, hospital account numbers, admission diagnosis, dates/times of service, Social Security numbers, insurance information, and medical and clinical information.

This week, New York Attorney General Letitia James issued a warning to all New Yorkers who have received a data breach notification from PJ&A to take steps to protect themselves against identity theft and fraud. New York healthcare providers affected include Northwell Health, the largest healthcare provider in New York, and Crouse Health in Syracuse.

When a data breach occurs at a business associate and the business associate issues notifications, there is potential for confusion. Individuals receiving notification letters are unlikely to be aware that the business associate had their data and may even dismiss the letter as a scam and take no action. After receiving notification letters from PJ&A, several individuals took to Reddit to seek answers as they were unsure whether the letters were genuine.

Attorney General James warned New Yorkers who receive a notification letter to be on alert as the stolen data may be misused. “I urge all New Yorkers affected by this data breach to stay alert and take these important steps to protect themselves,” said Attorney General James. “Bad actors can use the stolen information to impersonate individuals or cause financial harm. Identity theft is a serious issue, and my office will continue to take action to keep New Yorkers safe.” The same advice applies to all Americans who receive a notification letter.

The suggested actions include using credit monitoring services to track credit reports and generate alerts when a change is made to a credit file, placing a credit freeze on credit reports to ensure that new credit accounts cannot be opened, placing fraud alerts on credit reports to inform lenders and creditors to take extra steps to confirm identity before issuing credit, and obtaining copies of medical records from healthcare providers, pharmacies, and health insurers and checking for anything that seems incorrect, as it could indicate medical identity theft.

Records should also be kept of any time spent protecting against identity theft and fraud and any expenses that are incurred. It may be possible to recover costs by participating in a class action lawsuit and if there is a settlement, proof of losses will likely need to be provided when submitting a claim.

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Iowa Community HomeCare Sued over March 2023 Ransomware Attack

UI Community HomeCare and UI Community Medical Services, which are subsidiaries of University of Iowa (UI) Health Care, are being sued by a former employee and a patient over a March 2023 ransomware attack and data breach. The data breach was disclosed by IU Health Care in May 2023, but occurred in March 2023 and affected its subsidiaries. Iowa Community HomeCare discovered the security breach on March 23, 2023, when files on its network were encrypted. The investigation confirmed there had been unauthorized access to files containing sensitive data on March 23, 2023.

Personal and protected health information was exposed, and potentially stolen, such as names, birthdates, addresses, phone numbers, medical record numbers, referring physician names, dates of service, health insurance information, billing and claims information, medical history information, and diagnosis/treatment information. At the time of issuing notifications, Iowa Community HomeCare had identified no attempted or actual misuse of the stolen data. The data breach was reported to the HHS’ Office for Civil Rights as affecting up to 67,897 individuals.

The lawsuit was filed against UI Community HomeCare and UI Community Medical Services and claims the attack and data breach could have been prevented if the defendants had implemented appropriate security measures. While security measures had been implemented, the lawsuit alleges the defendants willfully avoided their data security obligations at the expense of plaintiffs and class members by utilizing cheaper, ineffective security measures.

The defendants are also alleged to have failed to disclose to patients that substandard cybersecurity measures were in place and vulnerabilities had not been addressed, which led the plaintiffs and class members to believe their sensitive information would be adequately protected when making decisions about purchasing and availing of the defendants’ services. As such, the plaintiffs claim that the defendants’ profits, benefits, and other compensation were obtained improperly and that the defendants are not legally entitled to retail any of the benefits, compensation, or profits realized from their transactions.

The lawsuit names Becky Kaefring and Kimberly Sullivan as plaintiffs. Kaefring worked for UI Community HomeCare between 2003 and 2019 and Sullivan’s child received health care services from UI Community HomeCare. The plaintiffs allege they have suffered injuries as a result of the data breach including lost time, annoyance, interference, inconvenience, and anxiety about the exposure of their sensitive data, and that they are faced with the burden of having to closely monitor for identity theft and fraud for years to come.

Kaefring alleges negligence, negligence per se, breach of implied contract, unjust enrichment, invasion of privacy, and breach of fiduciary duty and Sullivan alleges negligence, breach of implied contract, breach of implied covenant of good faith and fair dealing, and unjust enrichment. The lawsuit seeks class action certification, damages, a refund, and injunctive relief, including an order from the court compelling the defendant to make substantial improvements to security.

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Ardent Health Services Ransomware Attack Affects Hospitals in 6 States

Brentwood, Tennessee-based Ardent Health Services, which operates 30 hospitals and has more than 200 sites of care across the country, has suffered a ransomware attack that has impacted hospitals in 6 states – Texas, Idaho, Kansas, New Jersey, New Mexico, and Oklahoma. The attack has resulted in emergency rooms being placed on divert, with new emergency patients redirected to alternate healthcare facilities. Without access to IT systems, some non-urgent elective surgeries have been canceled and will be rescheduled when access is restored to IT systems.

Several Ardent Health Services facilities had already announced over the Thanksgiving weekend that they were investigating network outages that started on Thanksgiving Day. Emergency downtime protocols had been implemented and patient information was being recorded using pen and paper due to the lack of access to IT systems and patient data. Ardent Health Services issued a statement on Monday confirming that the disruption had been caused by a ransomware attack.

Unauthorized activity was first detected on the morning of November 23, 2023, and it was subsequently determined to have been caused by a ransomware attack. At the time of writing, no ransomware group has claimed responsibility for the attack. Ardent said it immediately took its network offline, suspended user access to its technology applications, corporate servers, Epic EMR system, and its Internet and clinical programs, and implemented its downtime protocols.

The health system is working to restore access to its IT systems as quickly as possible and, in the meantime, ambulances are likely to remain on divert until its IT operations have been restored. There is also likely to be ongoing disruption to its clinical and financial operations; however, patient care continues to be provided safely and effectively in all of its hospitals. Third-party cybersecurity experts have been engaged to assist with the investigation and determine the scope of the attack and the extent to which patient data was compromised, and the incident has been reported to law enforcement. A time frame could not be provided for how long it will take to restore its IT systems and determine the extent, if any, that that patient data has been compromised.

The HIPAA Journal first reported outages at several hospitals early on Monday. Details of the affected hospitals can be found in this post.

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BlackCat Ransomware Group Re-encrypts Henry Schein Data

The BlackCat ransomware group conducted a ransomware attack on the Fortune 500 firm Henry Schein and claimed to have stolen 35 TB of sensitive data. The healthcare giant was engaged in ongoing discussions with the group but negotiations had stalled. According to a spokesperson for the BlackCat group, “We have not received any indication of their willingness to prioritize the security of their clients, partners, and employees, let alone protect their own network.” Just as Henry Schein was about to finish restoring its systems, the BlackCat hackers struck again and re-encrypted its data.

Henry Schein confirmed in an October 15, 2023, announcement that it had been forced to take some of its systems offline to contain a cyberattack that had affected its manufacturing and distribution businesses. According to the announcement, the attack occurred the previous day. The company had been working around the clock to resolve the situation and bring its systems online, and as its investigation progressed it became clear that the ransomware group had gained access to sensitive customer and supplier information. That information included personal information, bank account information, and payment card numbers. Around two weeks after Henry Schein announced the attack, the BlackCat ransomware group claimed responsibility and added Henry Schein to its data leak site.

Henry Schein has now confirmed that the second attack resulted in applications such as its e-commerce platform being made unavailable; however, Henry Schein anticipated a quick recovery from the attack and only expected it to cause short-term disruption. Following the attack, the BlackCat group threatened to publish internal payroll data on its data leak site within a few hours if Henry Schein refused to negotiate, and claimed additional data would be released on a daily basis thereafter. Instead of posting data, BlackCat removed the listing. That could mean Henry Schein has started negotiating again or that a ransom payment has been made. Entries on the data leak sites of ransomware groups are typically only removed if a ransom has been paid.

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Texas and Idaho Healthcare Providers Suffer Thanksgiving Day Cyberattacks

Cyber actors often time their attacks to coincide with holiday periods when IT staffing levels are likely to be reduced to increase the probability of being able to access networks and exfiltrate data undetected, especially during Thanksgiving weekend. This year is no exception. A medical center in Idaho and an East Texas health system have announced that they are currently investigating potential cyberattacks that started on Thanksgiving Day. The nature of the attacks has not yet been disclosed and, at such an early stage in the investigations, it is unclear if patient data has been exposed or stolen.

UT Health East Texas, Texas

Tyler, TX-based UT Health East Texas, the operator of 10 hospitals and more than 90 healthcare clinics in East Texas, has confirmed that it experienced a network outage on Thursday, November 24, 2023. Steps were immediately taken to lock down its network to prevent any further unauthorized access. Without access to critical IT systems, ambulances were put on divert; however, care continues to be provided to patients with the health system operating under established downtime procedures. A statement was issued by a UT Health East Texas spokesperson saying network access is expected to be restored in around 24-36 hours, although it is currently unclear if that has happened.

Portneuf Medical Center, Idaho

Portneuf Medical Center in Pocatello, IA, has launched an investigation into a possible cyberattack and data breach that was detected on November 24, 2023. The attack resulted in a network outage, and the decision was taken to put the emergency room on divert status until access to its network was restored. The medical center is operating under established downtime procedures and says patient care has been unaffected.

Three Further Healthcare Providers Added to Hacking Group Data Leak Sites

Three healthcare providers have recently been added to the data leak sites of hacking groups.

Vanderbilt University Medical Center, Tennessee

Vanderbilt University Medical Center (VUMC), which operates seven hospitals and many healthcare facilities in and around Nashville, TN, has confirmed an investigation has been launched into a recent cyberattack. While the nature of the cyberattack has not yet been disclosed, VUMC has confirmed that a database was compromised in the attack, although the preliminary results of the investigation indicate neither patient nor employee data were stolen in the attack.

On November 24, 2023, VUMC was added to the Meow Leaks data leak site, along with 7 (non-healthcare) victims. The listing indicates the attack occurred on November 2, 2023, and the group claims to have 100% leaked the stolen data and has threatened to hack VUMC again if the ransom is not paid.

Crystal Lake Health Centers, Michigan

Crystal Lake Health Centers, the operator of 11 health centers in Michigan, has recently been added to the Hunters International data leak site. The listing includes a sample of 47.5 MB of data as evidence of the attack, and the group claims to have exfiltrated 120 GB of data in total including patient information such as contact details, SSNs, and insurance data. Hunters International is primarily a data theft and extortion group; however, has recently acquired the infrastructure and source code of the now-defunct Hive ransomware group.

Granger Medical Clinic, Utah

Granger Medical Clinic in Riverton, UT, was added to the data leak site of the NoEscape ransomware group on November 24, 2023.  It is not clear from the listing when the attack occurred but it appears that the clinic entered into negotiations before refusing to pay the ransom. The group claims to have infiltrated 38 GB of data and has published screenshots as proof of the attack. The NoEscape group claims to have successfully encrypted data on the network and exfiltrated employee data and patient data, including names, contact information, more than 2,000 passports, and tens of thousands of SSNs. The group demanded payment of $700,000 to prevent the release of the stone data.

The medical clinic has not yet announced the ransomware attack and data breach but has posted a notice on its website warning about emails that claim to be from Granger Medical Clinic about employment opportunities and said communications would only come from @GRANGERMEDICAL.COM, @SEND.APPLICANTEMAILS.COM, or @APPLICANTEMAIL.COM and the clinic would never ask for payment in relation to job opportunities. It is unclear if this scam is related to the ransomware attack.

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Mission Community Hospital Alerts Patients About May 2023 Cyberattack

Mission Community Hospital, an acute care hospital serving the patients of the San Fernando Valley in California, has started notifying patients that some of their personal and protected health information was exposed in a May 2023 cyberattack.

Unauthorized access to its network was discovered on May 1, 2023, and the forensic investigation determined that an unauthorized third party accessed its network the same day, including files that contained patient data. The review of the files revealed they contained names, addresses, dates of birth, Social Security numbers, driver’s license numbers, financial account information, health insurance plan member IDs, claims data, and clinical information related to the care received at Mission Community Hospital.

Affected individuals have been offered a complimentary one-year membership to a credit monitoring and identity theft protection service. Mission Community Hospital said it has implemented additional safeguards and technical security measures to further protect and monitor its systems. The HHS’ Office for Civil Rights breach portal still shows the placeholder of 500 records in a report submitted on June 30, 2023. 500 is a commonly used placeholder to meet breach reporting requirements until the number of individuals affected is known.

The breach notification letter did not include details about the nature of the attack other than stating ” files containing some of your information may have been subject to unauthorized access,”; however, this appears to have been a ransomware attack. The RansomHouse ransomware group claimed responsibility for the attack and has added Mission Community Hospital to its dark web data leak site. In the listing, the group claims to have infiltrated “more than 2.5 TB” of data. The listing has a downloadable evidence pack, which consists of screenshots of its file system that appear to have been taken on April 16, 2023, around two weeks before unauthorized access was detected. The HIPAA Journal has confirmed that no data is currently showing on the listing, only the screenshots, which could indicate that the data has been sold per the group’s threat or the group is still holding out for payment. Listings are usually removed from data leak sites if a ransom is paid.

RansomHouse was behind a 2023 attack on Warren General Hospital, the listing for which is still on the group’s data leak site along with evidence packs, although there has been no data dump so far. Warren General Hospital recently reported the breach to OCR as affecting 168,921 individuals. A March 2023 attack on Albany ENT & Allergy Services is also listed, which includes a full data dump. According to the OCR breach portal, 224,486 patients of Albany ENT were affected by the attack.

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Longhorn Imaging Center Cyberattack Affects More than 100,000 Patients

Data breaches have recently been announced by Longhorn Imaging Center in Texas, Woodfords Family Services in Maine, Prestige Care/Prestige Senior Living in Washington, WellLife Network Inc. in New York, and Frederiksted Health Care in the U.S. Virgin Islands.

Longhorn Imaging Center Data Breach

South Austin Health Imaging LLC, which does business as Longhorn Imaging Center in Austin, TX, has recently reported a hacking incident to the HHS’ Office for Civil Rights that has affected 100,643 patients. According to the breach notice submitted to the Texas Attorney General, the breached information included full names, addresses, dates of birth, medical information, and health insurance information. Notification letters are now being sent to the affected individuals.

There is currently no substitute breach notice on the Longhorn Imaging Center website and the imaging center has yet to confirm exactly what happened, including when the breach occurred and when it was detected; however, this appears to have been an attack by the SiegedSec threat group – the group behind the recent attack on the Idaho National Laboratory.

In early June, the group added Longhorn Imaging Center to its data leak site and claimed it had exfiltrated a database that included “physician full names, patient full names, patient treatment info, patient data of birth, patient gender, treatment date, institution name, and lost more.”

Woodfords Family Services Data Breach

Woodfords Family Services, a Westbrook, ME-based provider of services to people with special needs and their families, has recently reported a data breach to the HHS’ Office for Civil Rights that has affected 6,691 individuals.

According to its substitute breach notification, the forensic investigation confirmed that its network was accessed by an unauthorized third party on or around June 19, 2023, and files containing a limited amount of personal information may have been removed from its network. The document review confirmed the files contained full names in combination with one or more of the following: address, date of birth, phone number, email address, Social Security number, driver’s license number, government-issued identification number, medical record number, full face photo, unique identifier, certificate/license number, financial account information, credit/debit card information, passport number, medical treatment/diagnosis information, and/or health insurance policy information.

Affected individuals were notified on November 10, 2023, and complimentary credit monitoring services have been offered to individuals whose Social Security numbers were exposed.

Prestige Care Data Breach

Prestige Care/Prestige Senior Living in Washington has recently announced that it fell victim to a cyberattack that was detected on or around September 7, 2023, that resulted in its network being infected with malware that prevented access to certain files. The investigation confirmed the unauthorized actor accessed files on its systems the same day the breach was detected.

The investigation and file review are ongoing, and the total number of individuals affected has yet to be determined, although Prestige has said the information of current and former employees and residents was compromised in the attack. The impacted information varies from individual to individual and may include names, Social Security numbers, dates of birth, medical information, and health insurance information. Notification letters will be sent to the affected individuals when the review is completed. To meet regulatory breach reporting requirements, the incident has been reported to the HHS’ Office for Civil Rights as affecting at least 501 individuals. The total will be updated when the review is completed.

The HIPAA Journal previously reported that the ALPHV/BlackCat ransomware group claimed responsibility for the attack and had added Prestige to its data leak site and claimed to have stolen 260 GB of data. While the listing is still on the leak site, no data is currently downloadable.

WellLife Network Inc. Data Breach

WellLife Network Inc., a New York-based provider of behavioral health services, has recently issued an interim notification about a cyberattack that was detected on September 7, 2023. Third-party cybersecurity specialists were engaged to investigate unauthorized network activity and confirmed that an unauthorized third party accessed its network between August 26, 2023, and September 7, 2023, and viewed and/or copied files containing patient information.

The WellLife Network has started a manual and programmatic review of the affected files to determine the affected data and the number of individuals impacted. That review is ongoing, but it appears that the types of information involved include name, date of birth, demographic information, and/or other personal or health information. Individual notifications will be sent to the affected individuals when the review is completed. To meet regulatory breach reporting requirements, the incident has been reported to the HHS’ Office for Civil Rights as affecting at least 501 individuals. The total will be updated when the review is completed.

Frederiksted Health Care Data Breach

Frederiksted Health Care, Inc., a healthcare provider serving patients in the St. Croix community in the U.S. Virgin Islands, confirmed to local media in late October that it had suffered a cyberattack. Steps were immediately taken to secure its systems and an investigation was launched to determine the nature and scope of the incident. Local media reports indicate this was a ransomware attack. The healthcare provider has recently reported the incident to the HHS’ Office for Civil Rights as affecting 600 individuals.

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WellTok Data Breach: At Least 3.5 Million Individuals Notified

The Denver-based patient engagement company, WellTok, has recently confirmed that it was one of the victims of the Clop hacking group, which exploited a zero-day vulnerability (CVE-2023-34362) in Progress Software’s MOVEit Transfer file transfer tool in May 2023. Around 3.5 million individuals have been notified they have been affected by the Welltok data breach.

Welltok, which is owned by Virgin Pulse, works with health plan providers and manages communications with their subscribers through its platform. The company also operates a voluntary online wellness program for health plan subscribers that encourages healthy lifestyle changes. Welltok used the MOVEit Transfer tool for transferring large datasets across the Internet as part of its contracted services with health plans. According to Welltok, it was notified by Progress Software on May 31, 2023, about a vulnerability in the platform and applied the patch and mitigations as recommended by Progress Software. Its initial investigation suggested its MOVEit Transfer server had not been compromised. Then on July 26, 2023, it was alerted about an earlier breach of its MOVEit Transfer server, and on August 11, 2023, confirmed that the Clop group had exploited the vulnerability on May 30, 2023, the day before the patch was released. Data theft was confirmed on August 26, 2023.

A review of the affected files confirmed that they contained the data of health plan members such as names, dates of birth, addresses, and health information. Certain individuals also had their Social Security numbers, Medicare/Medicaid IDs, and health insurance information stolen. A substitute breach notification was uploaded to the Welltok website in October; however, it would only likely be found by individuals who visited the website, as the page had been set as no-index which meant it would not be indexed by search engines.

Welltok notified the Maine Attorney General about the data breach, which was reported as affecting 1,648,848 individuals. The notification was issued on behalf of the following group of health plans of Stanford Health Care:

  • Stanford Health Care
  • Lucile Packard Children’s Hospital Stanford
  • Stanford Health Care Tri-Valley
  • Stanford Medicine Partners
  • Packard Children’s Health Alliance

The Welltok website notification states it is providing notifications on behalf of Sutter Health, Trane Technologies Company LLC, and group health plans sponsored by Trane Technologies Company LLC or Trane U.S. Inc. Those entities were not included in the Maine Attorney General notification. Sacramento, CA-based Sutter Health previously confirmed that it was affected by the Welltok data breach and said 845,451 individuals had been affected.

Arkansas-based St. Bernards Healthcare, Inc. separately reported the breach to the Maine Attorney General as affecting 89,556 individuals. Corewell Health, which serves patients in southeast Michigan, was also affected by the Welltok data breach and said approximately 1 million patients had been affected along with around 2,500 Priority Health members. Based on the reports so far, Welltok has notified around 3.5 million individuals that they were affected.

“Yet another stark example of supply chain vulnerabilities being exploited by cybercriminals. For far too long companies who develop software platforms have seen cybersecurity as an expense versus a functionality of doing business. Greater due diligence is necessitated by Virgin Pulse per runtime security and vulnerability management,” Tom Kellermann, SVP of Cyber Strategy at Contrast Security told the HIPAA Journal.

The latest tracking data from the cybersecurity firm Emsisoft shows the Clop hacking group mass exploited the vulnerability to attack at least 2,618 organizations globally, and the personal data of at least 77 million individuals was stolen. Emsisoft said the sectors most affected were education, healthcare, financial and professional services. While the vulnerability was exploited in late May, many organizations have only recently confirmed they were affected and those totals are certain to continue to rise. Many lawsuits have been filed in response to these data breaches, against the organizations affected as well as Progress Software. 58 lawsuits against Progress Software were consolidated into a single class action in Federal court in Massachusetts last month, as each made similar claims. The U.S. Securities and Exchange Commission (SEC) has also launched an investigation into Progress Software over the data breach.

“Once a vulnerability is made public, the hourglass is turned and IT teams have limited time before criminals take advantage of the vulnerability if they haven’t done so already,” Dror Liwer, co-founder of cybersecurity company Coro told the HIPAA Journal “To minimize the risk, removal of impacted software, or patching if available, must be immediate. Every sand grain that falls is an opportunity for the criminals, and an exposure to the organization.”

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