DataBreaches.Net

Menu
  • About
  • Breach Notification Laws
  • Privacy Policy
  • Transparency Report
Menu

$2.5 million settlement because draft policies and plans were neither finalized nor implemented before laptop theft

Posted on April 24, 2017 by Dissent

A recent HHS settlement that included a relatively small monetary penalty, $31,000, didn’t seem to get a lot of media attention. Maybe today’s announced settlement stemming from a laptop theft that resulted in a steep monetary penalty will get attention? From HHS:

The U.S. Department of Health and Human Services, Office for Civil Rights (OCR), has announced a Health Insurance Portability and Accountability Act of 1996 (HIPAA) settlement based on the impermissible disclosure of unsecured electronic protected health information (ePHI). CardioNet has agreed to settle potential noncompliance with the HIPAA Privacy and Security Rules by paying $2.5 million and implementing a corrective action plan. This settlement is the first involving a wireless health services provider, as CardioNet provides remote mobile monitoring of and rapid response to patients at risk for cardiac arrhythmias.

In January 2012, CardioNet reported to the HHS Office for Civil Rights (OCR) that a workforce member’s laptop was stolen from a parked vehicle outside of the employee’s home. The laptop contained the ePHI of 1,391 individuals. OCR’s investigation into the impermissible disclosure revealed that CardioNet had an insufficient risk analysis and risk management processes in place at the time of the theft. Additionally, CardioNet’s policies and procedures implementing the standards of the HIPAA Security Rule were in draft form and had not been implemented. Further, the Pennsylvania –based organization was unable to produce any final policies or procedures regarding the implementation of safeguards for ePHI, including those for mobile devices.

“Mobile devices in the health care sector remain particularly vulnerable to theft and loss,” said Roger Severino, OCR Director. “Failure to implement mobile device security by Covered Entities and Business Associates puts individuals’ sensitive health information at risk. This disregard for security can result in a serious breach, which affects each individual whose information is left unprotected.”

The Resolution Agreement and Corrective Action Plan may be found on the OCR website at https://www.hhs.gov/hipaa/for-professionals/compliance-enforcement/agreements/cardionet

SOURCE: HHS

More than five years from report of the theft to HHS settlement? It would be great if HHS had the resources to investigate and pursue more cases in a way that resolves them more quickly.


Related:

  • North Country Healthcare responds to Stormous's claims of a breach
  • Gladney Adoption Center had serious data exposures in the past few months. What will they do to prevent more?
  • Former U.S. Soldier Pleads Guilty to Hacking and Extortion Scheme Involving Telecommunications Companies
  • DOGE Denizen Marko Elez Leaked API Key for xAI
  • Four people bailed after arrests over cyber attacks on M&S, Co-op and Harrods
Category: Health DataTheft

Post navigation

← Blowout Cards Notifies Customers After Card Fraud Reports Roll In
Wellington Student Arrested for Selling Drugs on the Darknet →

Now more than ever

"Stand with Ukraine:" above raised hands. The illustration is in blue and yellow, the colors of Ukraine's flag.

Search

Browse by Categories

Recent Posts

  • North Country Healthcare responds to Stormous’s claims of a breach
  • Gladney Adoption Center had serious data exposures in the past few months. What will they do to prevent more?
  • Former U.S. Soldier Pleads Guilty to Hacking and Extortion Scheme Involving Telecommunications Companies
  • DOGE Denizen Marko Elez Leaked API Key for xAI
  • Four people bailed after arrests over cyber attacks on M&S, Co-op and Harrods
  • RansomedVC is back — and is still attacking its competitors
  • Texas Enacts Electronic Health Record Data Localization Law
  • United Australia Party confirms ransomware attack, personal data and email correspondence exposed
  • Armenian National Extradited to the United States Faces Federal Charges for Ransomware Extortion Conspiracy
  • 70% of healthcare cyberattacks result in delayed patient care, report finds

No, You Can’t Buy a Post or an Interview

This site does not accept sponsored posts or link-back arrangements. Inquiries about either are ignored.

And despite what some trolls may try to claim: DataBreaches has never accepted even one dime to interview or report on anyone. Nor will DataBreaches ever pay anyone for data or to interview them.

Want to Get Our RSS Feed?

Grab it here:

https://databreaches.net/feed/

RSS Recent Posts on PogoWasRight.org

  • Texas Enacts Electronic Health Record Data Localization Law
  • Upstate NY county clerk again refuses to enforce Texas abortion judgment
  • Attorney General James Leads Coalition Urging Congress to Protect Americans from Masked ICE Agents
  • Attorney General Tong Announces $85,000 Settlement with TicketNetwork for Violations of the Connecticut Data Privacy Act​
  • Fourth Circuit upholds West Virginia ban on abortion pills
  • Meta fixes bug that could leak users’ AI prompts and generated content
  • The EU’s Plan To Ban Private Messaging Could Have a Global Impact (Plus: What To Do About It)

Have a News Tip?

Email: Tips[at]DataBreaches.net

Signal: +1 516-776-7756

Contact Me

Email: info[at]databreaches.net

Mastodon: Infosec.Exchange/@PogoWasRight

Signal: +1 516-776-7756

DMCA Concern: dmca[at]databreaches.net
© 2009 – 2025 DataBreaches.net and DataBreaches LLC. All rights reserved.