Healthcare is one of the most regulated industries in the U.S. HIPAA, or the Health Insurance Portability and Accountability Act of 1996, requires healthcare organizations and their third-party service providers, such as labs and billing companies, to have data security measures in place protect patients’ private health information (PHI). HIPAA compliance is complex, and the penalties for non-compliance are stiff; if a facility’s PHI is breached, and it is found they were not compliant with HIPAA, the facility could face millions of dollars worth of fines. In some cases, company executives can even be held criminally liable.

C-level executives in the healthcare industry may not understand the intricacies of ransomware attacks or phishing schemes, but they do understand the seriousness of HIPAA compliance. They also fall into the trap of thinking that if their organization is compliant with HIPAA, that means their systems are safe. As a result, they devote most or all of their cyber security resources to complying with HIPAA.

HIPAA compliance is crucial – but a cyber security plan cannot start and end with HIPAA compliance.

HIPAA Compliance Is Only a Starting Point to Protect Patient Data

Today’s healthcare IT environment is highly complex. In addition to electronic health records (EHRs), mobile technology, cloud applications, electronic health exchanges, and Internet of Things (IoT) devices are growing in popularity. These technologies are making it easier for healthcare providers to deliver quality care and are improving patients’ lives, but each new gadget and application means new vulnerabilities for hackers to exploit.

In a recent survey of information security experts conducted by the Brookings Institution, most respondents indicated that they felt HIPAA does not sufficiently address modern healthcare data security issues, mainly because the law is light on specifics. HIPAA compliance is primarily about demonstrating that an organization has met certain documentation and procedural requirements. It does not outline precise technical safeguards.

The proof that HIPAA compliance is insufficient to protect against ransomware and data breaches is in the statistics. Healthcare is the most likely industry to experience a data breach. Nearly 90% of healthcare organizations – and 60% of third-party healthcare vendors – have experienced at least one breach. Nearly 80% have had two or more, and nearly 50% have had three or more.

Why Isn’t HIPAA Compliance Enough?

There are several reasons why HIPAA compliance does not provide full data protection on its own. First, it isn’t meant to. Technology simply changes too quickly for any legislation to keep up. By the time a new set of rules were written, they’d already be out of date! This is why HIPAA focuses on what organizations need to achieve, not on precisely how they should go about achieving it. Second, every organization’s IT environment is different. A data security plan that works well at one facility may fall flat at another. Finally, compliance rules cannot adequately address the threats posed by mistakes, negligence, or malicious acts on the part of a facility’s employees, which cause nearly half of all data breaches.

HIPAA compliance should be the starting point – not the entirety – of a comprehensive, proactive healthcare data security plan.

Many healthcare organizations do not have the resources to handle all of their information security needs in-house; many others don’t know where to start. This is why they should partner with a professional cyber security firm such as Lazarus Alliance. The cyber security experts at Lazarus Alliance have deep knowledge of the cyber security field, are continually monitoring the latest information security threats, and are committed to protecting organizations of all sizes from security breaches. We offer full-service risk assessment services and Continuum GRC software to protect companies from data breaches, ransomware attacks, and other cyber threats.

Lazarus Alliance is proactive cyber security®. Call 1-888-896-7580 to discuss your organization’s cyber security needs and find out how we can help your organization.

Doping allegations, illegal gambling, and other attempts to game the system and give a player or a team an edge have long plagued the professional sports world. Now, the cheating has gone cyber. Chris Correa, a former executive with the Saint Louis Cardinals MLB team, has been sentenced to nearly four years in prison for hacking into the Houston Astros’ database and stealing confidential information that could have given the Cardinals an unfair advantage. It is unclear how many other Cardinals employees – if any – were aware of the Houston Astros hack, and the MLB is looking into taking action against the team as a whole.

However, whether or not the MLB decides to sanction the Cardinals, the Astros need to clean up their cyber security act, and other organizations should take heed of the mistakes the team made.

How Did the Houston Astros Hack Happen?

Although it involved the glamorous world of professional sports, the Houston Astros hack was just like most other data breaches. It happened not because a hacker found a “backdoor” into the system but through the use of stolen login credentials. Many times, these credentials are stolen via a phishing scheme, but Correa didn’t have to bother with putting one together; in fact, he may not have possessed the technical prowess to launch a phishing scheme.

According to court documents, a former Cardinals employee, identified only as “Victim A,” left the Cardinals to join the Astros organization in late 2011. Victim A was instructed to hand over his work laptop – and its password – to Correa. Correa, apparently figuring that the employee would use the same password or something very close to it in his new position, attempted to use the information to access the Astros’ database. He eventually figured it out and proceeded to steal confidential information regarding the player draft, trade negotiations, and other sensitive data. Even worse, after the Astros updated their database, Correa was able to obtain the new login information by accessing Victim A’s email account, where he found a message containing default login information to the new database system.

While Correa’s behavior was reprehensible, the Houston Astros hack didn’t have to happen. The organization could have prevented the breach by taking a few basic proactive security measures:

• Victim A’s practice of using a password that was very similar to the one he’d used at his previous job is a common error; despite security experts advising them otherwise, most people use the same password for multiple sites. Employees should not be allowed to choose their own passwords; instead, they should be assigned strong passwords and be required to change them on a regular basis.
• Systems that contain highly sensitive data should require multi-factor authentication upon login, not just a user name and password.
• Default login information should never be disseminated to employees through email. This information should be given to each employee in hard copy, and the system should automatically require the employee to change their default credentials the first time they log in.
• All systems should be continuously monitored for anomalous activity, such as an employee logging in from an unusual location or at odd hours.

The Houston Astros hack should be a wakeup call to organizations in all industries. It was not masterminded by a skilled hacker but a regular individual who took advantage of basic security flaws. Instead of being proactive, the Astros were reactive with their information security, and Correa’s plea deal estimates that their carelessness with employee passwords cost them $1.7 million.

Many organizations do not have the resources to handle all of their information security needs in-house; many others don’t know where to start. This is why they should partner with a professional cyber security firm such as Lazarus Alliance. The cyber security experts at Lazarus Alliance have deep knowledge of the cyber security field, are continually monitoring the latest information security threats, and are committed to protecting organizations of all sizes from security breaches. We offer full-service risk assessment services and Continuum GRC software to protect companies from data breaches, spear phishing attacks, and other cyber threats.

Lazarus Alliance is proactive cyber security®. Call 1-888-896-7580 to discuss your organization’s cyber security needs and find out how we can help your organization.

Wendy’s Data Breach: Forget the beef, where’s the cyber security?

The scope of the recent Wendy’s data breach, which has already resulted in a class-action lawsuit against the fast-food giant, is about to get much bigger. Krebs on Security reports having received information from “a number of sources in the fraud and banking community” alleging that “that there was no way the Wendy’s breach only affected five percent of stores [as Wendy’s originally reported] — given the volume of fraud that the banks have traced back to Wendy’s customers.” Even worse, these same sources allege that “the breach was still ongoing well after Wendy’s made the five percent claim in May.”

Backed into a corner, Wendy’s finally released a statement to Krebs on Security admitting that the number of locations affected was expected to be “considerably higher” than the approximately 300 originally reported. However, Wendy’s declined to estimate how many locations were involved, citing an ongoing investigation. Interestingly, the company emphasized that the breaches affected only independently owned franchise restaurants, not company-owned locations, and claimed that the breach was the fault of third-party service providers hired by franchisees to service and maintain their POS systems.

If that sounds like Wendy’s is passing the buck, it’s because they are. Rather than taking responsibility for the cyber security shenanigans going on under the Wendy’s banner, Wendy’s is choosing to place the blame on its franchisees and their third-party vendors: “They’re independently owned and operated, so we have no control over what they do!” It remains to be seen whether the courts will side with Wendy’s on this legal hairsplitting, but it’s unlikely that consumers will see things Wendy’s way. To a consumer, a Wendy’s location is a Wendy’s location, regardless of whether the corporation owns it or has franchised it out, and if consumers do not trust that their payment card data is safe at Wendy’s, they’ll stop patronizing their restaurants.

How Could the Wendy’s Data Breach Have Been Prevented?

Wendy’s claims that its POS systems were compromised using credentials stolen from POS service providers; these credentials allowed hackers to remotely access the POS systems. As discussed in a previous blog, there are numerous measures that restaurants and retailers can take to secure their POS systems, including monitoring the system for suspicious activity, such as someone logging in from an unusual location or accessing parts of the system they would have no legitimate reason to. The Wendy’s data breach could have been prevented had the company taken its cyber security seriously and implemented proactive security measures, but the company chose not to. Instead, it chose to pass the buck on its POS security, and then attempt to deflect responsibility onto its franchisees instead of getting out in front of the problem.

This begs the question, is the Wendy’s data breach a harbinger of things to come as the fast-food industry transitions from human clerks to automated ordering kiosks and touch screens? Consumers and the government are not yet asking this question, but if incidents like the Wendy’s data breach multiply, it’s certain they will be.

The core competency of a restaurant is food preparation, not information security, which is why restaurants should partner with a professional cyber security firm such as Lazarus Alliance. The cyber security experts at Lazarus Alliance have deep knowledge of the cyber security field, are continually monitoring the latest information security threats, and are committed to protecting retail and restaurant POS systems from security breaches. We offer full-service risk assessment services and Continuum GRC software to protect companies from data breaches, spear phishing attacks, and other cyber threats, as well as help them get and remain PCI DSS compliant.

Lazarus Alliance is proactive cyber security®. Call 1-888-896-7580 to discuss your organization’s cyber security needs and find out how we can help your restaurant protect its POS data and ensure compliance with PCI DSS.