Tag: Data Breach (page 1 of 3)

$3 Million Settlement for Two Separate HIPAA Breaches Affecting Over 62,500 Individuals

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Cottage Health and the Office for Civil Rights at the U.S. Department of Health and Human Services (HHS-OCR) recently entered into a $3 million no-fault settlement and three year corrective action plan to settle potential violations of the Health Insurance Portability and Accountability Act (HIPAA). This was HHS-OCR’s last HIPAA related settlement of 2018 – a record year in HIPAA enforcement activity, as detailed in this DBR on Data blog post.

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N.Y. Attorney General Enforces Mobile App Security Initiative, Announces Settlements with Five Companies

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In December 2018, the New York Attorney General’s Office announced settlements with five companies operating mobile apps, including Equifax and Western Union. The N.Y. Attorney General stated that the companies failed to keep sensitive information secure on their mobile apps and have agreed to implement improved security controls. The settlements came following a data privacy initiative by the Attorney General’s Office to proactively identify security vulnerabilities before consumer information is breached. As part of this effort, the Attorney General’s Office tested dozens of mobile apps that collect sensitive information.

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Charges Connected to Hack of SEC’s EDGAR System Discussed in SECurities and Law Perspectives

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Last week, the Department of Justice (“DOJ”) and the Securities & Exchange Commission (“SEC”) announced charges connected to a large-scale, international conspiracy to hack into the SEC’s Electronic Data Gathering, Analysis and Retrieval (“EDGAR”) system and profit by trading on stolen material, non-public information. The conduct underlying these cases was one of the principal reasons that the SEC created its Division of Enforcement “Cyber Unit” to target cyber-related securities fraud violations.

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House Committee Staff Report Finds Equifax Data Breach Entirely Preventable, Provides Recommendations for Consumer Reporting Agencies

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After a 14-month investigation into the 2017 Equifax data breach, which was one the largest in U.S. history, the House Oversight and Government Reform Committee released a report in December.

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Business Associate Exposes Protected Health Information of 19,000 Patients

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An error made by a transcription service provider during a software upgrade on Orlando Orthopaedic Center (OOC)’s server in December 2017 has resulted in the exposure of more than 19,000 patients’ protected health information (PHI). PHI stored on OOC’s server from December 2017 until February 2018 – when the breach was finally discovered – was freely exposed over the internet without any authentication. Upon full investigation, patients’ names, social security numbers, dates of birth, insurance information, employer details, and treatment types were deemed accessible.

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New Report Finds Health Care Industry Bears Highest Data Breach Costs

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Health care data breaches cost health care entities an average $408 per record– the highest of any industry for the eighth straight year, according to IBM and the Ponemon Institute’s 2018 Cost of a Data Breach Report, and three times higher than the cross-industry average of $148 per record. The cost for a health care data breach increased from last year’s reported average of $380 per record. Contributing factors to the high costs include compliance with laws and regulations and abnormally high churn rates due to consumer mistrust.

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