DataBreaches.Net

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

Hack of former DST business exposes Blue Cross Blue Shield member info

Posted on August 6, 2016 by Dissent

This may turn out to be one of the biggest healthcare sector breaches of the year.

Kansas City Business Journals reports:

Newkirk Products Inc. reported a security breach of personal information for health insurance ID cards, including those for Blue Cross and Blue Shield of Kansas City.

However, Newkirk said in a Friday release, the breach did not gain access to Social Security numbers or information related to banking or credit cards, medical history or claims.

[…]

Note that this incident affected multiple BCBS entities, as Newkirk’s press release makes clear (over 230,000 members of BCBS Western New York were reportedly affected, and that’s just one of the affected BCBS units):

ALBANY, N.Y., Aug. 5, 2016  — Newkirk Products, Inc. (“Newkirk”) today announced a cyber security incident involving unauthorized access to a server containing certain personal information.  Newkirk is a service provider that issues healthcare ID cards for health insurance plans including Blue Cross and Blue Shield of Kansas City, Blue Cross Blue Shield of North Carolina, HealthNow New York Inc., BlueCross BlueShield of Western New York, BlueShield of Northeastern New York, and Capital District Physicians’ Health Plan, Inc. (CDPHP), and, through Newkirk’s relationship as a service provider to DST Health Solutions, Inc., Gateway Health Plan, Highmark Health Options, West Virginia Family Health, Johns Hopkins Employer Health Programs, Inc., Priority Partners Managed Care Organization and Uniformed Services Family Health Plan.

No health plans’ systems were accessed or affected in any way.

The data potentially subject to unauthorized access varies by plan but includes some combination of: the member’s name, mailing address, type of plan, member and group ID number, names of dependents enrolled in the plan, primary care provider, and in some cases, date of birth, premium invoice information and Medicaid ID number.  The server did not contain Social Security numbers, banking or credit card information, medical information or any insurance claims information.

On July 6, 2016, Newkirk discovered that a server containing member information was accessed without authorization.  Newkirk shut down the server, started an investigation into the incident and hired a third party forensic investigator to determine the extent of the unauthorized access and whether the personal information of its clients’ members may have been accessed.  Newkirk also notified federal law enforcement.  While the forensic investigation is ongoing, it appears that the unauthorized access first occurred  on May 21, 2016.  Although the information contained on the server may have been accessed, Newkirk has no evidence to date that such data has been used inappropriately.

Broadridge Financial Solutions, Inc. acquired Newkirk on July 1, 2016 from DST Systems, Inc. (“DST”).  DST Health Solutions, Inc. is a subsidiary of DST.  The Broadridge network was not compromised, as the Newkirk network has not been integrated into Broadridge.  Furthermore, there is no evidence at this time that any other Newkirk or DST service or infrastructure has been impacted by this incident.

Letters to those impacted by the incident are being mailed.  These letters include an explanation of the incident, an offer of two years of free identity protection and restoration services and information about additional ways impacted individuals can protect themselves.

BCBS of Kansas City issued the following statement:

Blue Cross and Blue Shield of Kansas City (Blue KC) has been notified that Newkirk Products, Inc. (Newkirk), a service provider responsible for printing and mailing Blue KC member ID cards, experienced a data security incident that may affect members’ personal information.

The information potentially accessed includes member name, mailing address, type of health plan, member and group ID number, and other information found on member ID cards such as, in some cases, primary care provider.

Social Security numbers, dates of birth, banking or credit card information, medical information or any insurance claims information were not impacted by this incident.

Newkirk is working with federal law enforcement and a third-party forensic expert to investigate the incident. Although the information contained on the server may have been accessed, Newkirk has no evidence to date that such data has been used inappropriately.

As a precautionary measure, Blue KC placed a hold on producing and mailing new member ID cards and is providing temporary cards to new and existing groups and members upon request. Please contact Blue KC customer service at 1-844-583-4173 for assistance.

Newkirk is offering preventive steps members can take to protect their personal information, including two years of complimentary identity protection and restoration services. Visit www.newkirkproductsfacts.com for more information.

Unless affected individuals request a call back from the incident-specific call center, Blue KC and Newkirk will ONLY communicate with potentially affected members via mail or through member-initiated calls to the AllClear ID dedicated call center. Members should not respond to any emails or other written correspondence requesting personal information in connection with this incident. In addition, if members did not request a call back at the call center, they should not respond to any calls requesting personal information in connection with the incident.

Update: It looks like the total number affected will be about 3.3 million.

Category: Breach IncidentsHealth DataOf NoteSubcontractorU.S.

Post navigation

← Innovak Can’t Shake Data Breach Suit
WI: Janesville Pharmacist Charged with Health Care Fraud & Identity Theft →

1 thought on “Hack of former DST business exposes Blue Cross Blue Shield member info”

  1. kl says:
    August 25, 2016 at 7:01 pm

    The “AllClear” identity theft coverage is completely ridiculous to activate. Almost makes me think it’s done that way to deter people from claiming the free 2-year coverage. Disgusted.

Comments are closed.

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

  • Ransomware group Gunra claims to have exfiltrated 450 million patient records from American Hospital Dubai.
  • North Shore University Sleep Disorders Center employee charged with secretly recording patients in restrooms
  • When ransomware listings create confusion as to who the victim was
  • Rajkot civic body’s GIS website hit by cyber attack, over 400 GB data feared stolen
  • Taiwan’s BitoPro hit by NT$345 million cryptocurrency hack
  • Texas gastroenterology and surgical practice victim of ransomware attack
  • Romanian Citizen Pleads Guilty to ‘Swatting’ Numerous Members of Congress, Churches, and Former U.S. President
  • North Dakota Enacts Financial Data Security and Data Breach Notification Requirements
  • Pro-Ukraine hacker group Black Owl poses ‘major threat’ to Russia, Kaspersky says
  • Vanta bug exposed customers’ data to other customers

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

  • Florida ban on kids using social media likely unconstitutional, judge rules
  • State Data Minimization Laws Spark Compliance Uncertainty
  • Supreme Court Agrees to Clarify Emergency Situations Where Police Don’t Need Warrant
  • Stewart Baker vs. Orin Kerr on “The Digital Fourth Amendment”
  • Fears Grow Over ICE’s Reach Into Schools
  • Resource: HoganLovells Asia-Pacific Data, Privacy and Cybersecurity Guide 2025
  • She Got an Abortion. So A Texas Cop Used 83,000 Cameras to Track Her Down.

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.