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Tax Fraud Gang Targeted Healthcare Firms

Posted on April 30, 2014 by Dissent

Brian Krebs reports:

Earlier this month, I wrote about an organized cybercrime gang that has been hacking into HR departments at organizations across the country and filing fraudulent tax refund requests with the IRS on employees of those victim firms. Today, we’ll look a bit closer at the activities of this crime gang, which appears to have targeted a large number of healthcare and senior living organizations that were all using the same third-party payroll and HR services provider.

As I wrote in the previous story, KrebsOnSecurity encountered a Web-based control panel that an organized criminal gang has been using to track bogus tax returns filed on behalf of employees at hacked companies whose HR departments had been relieved of W-2 forms for all employees.

Among the organizations listed in that panel were Plaintree Inc. and Griffin Faculty Practice Plan. Both entities are subsidiaries of Derby, Conn.-based Griffin Health Services Corp.

Steve Mordecai, director of human resources at Griffin Hospital, confirmed that a security breach at his organization had exposed the personal and tax data on “a limited number of employees for Griffin Health Services Corp. and Griffin Hospital.” Mordecai said the attackers obtained the information after stealing the organization’s credentials at a third-party payroll and HR management provider called UltiPro.

And at long last, we have the common denominator for some breaches that had been reported on this blog, including Assisted Living Concepts. You can read the other entities affected in Brian’s full post, here.

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