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Attorney General James Secures $400,000 from Dental Insurance Provider for Failing to Protect Patient Data

Posted on December 12, 2023 by Dissent

Chris Boyle reports:

New York Attorney General Letitia James today secured $400,000 from one of New York’s largest dental insurance providers, Healthplex, Inc. (Healthplex), for failing to properly protect the personal and medical information of New Yorkers. Healthplex, a Long Island-based company, had inadequate data security practices that made it susceptible to a data breach attack that compromised the personal and private information of 89,955 individuals, of which 63,922 were New York residents. As a result of this agreement, Healthplex has agreed to strengthen its data security practices.

“Visiting a dentist’s office can be a stressful experience without having the added concern that personal and medical data could be stolen by bad actors,” said Attorney General James. “Insurers, like all companies charged with holding on to sensitive information, have an obligation to ensure that data is safeguarded and doesn’t fall into the wrong hands. New Yorkers can rest assured that when my office is made aware of data breaches, we will drill down and get to the root of the problem.”

In late November 2021, an unknown individual sent a phishing email to a Healthplex employee, requesting the employee to enter their login credentials. On November 24, 2021, the hacker gained access to the employee’s account which contained over 12 years of emails. Some of the exposed emails contained sensitive customer enrollment information, including names, member identification numbers, insurance group names and numbers, addresses, dates of birth, credit card numbers, banking information, Social Security numbers, and member portal usernames and passwords. The Office of the Attorney General’s investigation concluded that, by failing to implement multifactor authentication for remote email access, Healthplex failed to adopt reasonable data security practices to protect patients’ personal and health information.

Read more at LongIsland.com.

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Category: Health DataOf NotePhishingU.S.

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