security —

Medical services company settles with 4 states over 2023 hack of sensitive patient records

State attorneys general on Friday announced a health care services company has agreed to pay $300,000 and make sweeping changes to its security practices following a March 2023 breach exposing the data of more than 13 million people nationwide.

Medical services company settles with 4 states over 2023 hack of sensitive patient records

The case, brought by AGs in Connecticut, New Jersey, New York and Michigan, targeted the medical transcription, coding and imaging subsidiaries of the Nevada-based Perry Johnson Companies. If the firm fails to make the required cybersecurity reforms, it will be required to pay the four states an extra $9.7 million, according to a press release from the office of New York Attorney General Letitia James.

James’ office rolled out a probe that found hackers broke into Perry Johnson’s systems by using an employee’s credentials. The company did not use multi-factor authentication to verify users, according to James’s office. In the months following the hack, the bad actor hoovered up passwords and obtained unencrypted files storing patients’ protected health data, the press release said.

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Reported by therecord.media.

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