Friday, May 25, 2012

228,000 Medicaid Beneficiaries had Personal Information Breached by Medicaid Employee in North Carolina

Over 228,000 Medicaid beneficiaries had their personal information stolen by a South Carolina employee of the Department of Health and Human Services. The employee allegedly gathered names, phone numbers, addresses, birth dates and Medicare ID numbers for us in identity theft

The cost is potentially millions of dollars of fines by federal and state agencies for not safeguarding the information properly on top of $800,000 to $1 million spent on credit protection services for the individuals affected.

The employee, a former member of the local Democratic Party executive committee, was charged with five counts of violating medical confidentiality laws and one count of disclosure of confidential information.
"An employee completely abused the information that they had and used it for personal gain. We’re going to make sure this does not happen again." - Gov. Nikki Haley
Governor Haley told her cabinet agency heads that supervisors at state agencies risk their jobs if they are not vigilant about security. “If (agencies) have a supervisor who has this happen on their watch, they will get fired,” she said.

The directory of the state's Health and Human Services said state employees inappropriately using information pose a greater threat than external hackers but he does not have a monitoring system that could have picked up on the breach.
Detect inappropriate access by authorized insiders, just like the one in this blog posting. Download a white paper on privacy breach detection monitoring service works with no hardware and no on-site software.
Sources:
(a) Personal data for 228,000 in SC compromised - State employee charged; HHS to help protect IDs - The State, April 20, 2012
(b) Haley wants ‘example’ made of ex-state worker - The State, May 01, 2012

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