Health Insurer, Anthem, Says Database Of Customers And Employees Hacked

Check out the information on Health insurer - Anthem whose one of databse was hacked on 4th February.

Anthem, which is USA’s second largest health insurer, on February 4th revealed that one of their databases, which holds personal information relating to around 80 million of its clients and employees was hacked. This cyber infraction is the first of its kind that the Wall Street Journal has reported.

According to the paper, investigations were still ongoing regarding the extent of the breach, though the company itself revealed their fear that ‘tens of millions’ of employee and client records had likely been taken already. According to Anthem, the breach led to the disclosure of personal information – names, physical and email addresses, Social Security Numbers as well as employment information, including remuneration information.

No access to credit card and media information

Anthem, however, assured clients that credit card information had not been accessed and asserted that there was no evidence pointing to access to or targeting of medical information – test results and insurance claims, for instance.

This attack is the most recent following a sequence of hacks directed towards high-profile companies. Previous attacks hit retailers such as Target and Home Depot, banks including JPMorganChase and the entertainment corporation Sony Pictures.

Having detected the breach, the health insurer announced that clients that were affected would be notified through e-mail and post. Anthem also revealed their intention to institute an information website and offer credit-monitoring services.

This early revelation to the public was lauded, representing a shift from the strategies of previous victims who did not report the breaches quickly enough after discovery.

In a statement released on the same day, the chairperson of the House Homeland Security Committee, Rep. Michael McCaul of R-Texas, said that the attack was proof of the continual threats being faced by corporations. He asserted the necessity of a move by Congress to eliminate legal barriers to sharing information on cyber security perils.

PHI very valuable for cyber attackers

According to security experts, health data and information holds great allure for cyber criminals. For there to be a crime, there must be opportunity and motive. Health data has monetization potential, which speaks to the motive, while the fact that health records are being increasingly digitized and shared through various digital channels provides ample opportunity.

This is enforced by the fact that the security measures in place are a sore match for the sophistication of attackers perpetrating these crimes. Personal Health Information (PHI), according to the cloud security firm Bitglass’s CEO, Nat Kausik, holds greater value than credit card information.

Credit cards come with the option of cancellation, whereas PHI has more vital and unchangeable information which gives cybercriminals a full profile of the victims. They can then assume their identities to commit insurance fraud, open new accounts and credit cards and commit prescription fraud, among other things.

Given this trend, it’s important for all corporations to revisit their current security systems and determine whether these are capable of rebuffing any directed cyber intrusions. The elevated legal costs and danger of huge financial losses are too high a price to pay for any organization, explained Mr. Matt Cullina, who is the CEO of IDT911, an identity protection firm.