Alter Healthcare Data Breach Exposed Information of Over 100 Million Individuals
Malevolent entities gained access to the confidential health records of more than 100 million individuals in the breach of Alter Healthcare in February — the most extensive health care data breach ever reported to federal authorities — revealed by the U.S. Office for Civil Rights on Oct. 22.
The intrusion, disclosed in June, may impact up to a third of the U.S. population. It has emerged as one of the major cyberattacks of the year, highlighting how ransom data could lead to physical harm, such as delayed delivery of crucial medication.
SEE: Nation-state attackers might seek out “target-rich, cyber-poor” organizations like public infrastructure or health care, as per CISA advisor Nicole Perlroth.
Insight into the Alter Healthcare Cyberattack
In February, the parent company of Alter Healthcare, UnitedHealth Group, discovered that a hacker implanted ransomware into the systems of Alter Healthcare. The group ALPHV, also known as BlackCat, claimed responsibility for the breach.
By March, Alter Healthcare confirmed that hackers infiltrated their systems between Feb. 17 and 20. The company engaged top cybersecurity and data analysis professionals, including experts from Mandiant, to analyze the stolen records. In April, UnitedHealth released a more detailed report on the incident.
During a Senate hearing in May, UnitedHealth Group CEO Andrew Witty disclosed that the company paid a $22 million ransom in Bitcoin to retrieve the stolen data.
Cybersecurity experts strongly advise against paying ransoms due to the incentives it provides to threat actors, potential financial repercussions on businesses, and the absence of a guaranteed data return. The U.S. government is contemplating the contentious proposal of prohibiting ransom payments.
Alter Healthcare stated that they are unable to specify the exact impact on each individual’s data. Generally, the stolen data included:
- First and last names, addresses, dates of birth, phone numbers, and emails.
- Health details like diagnoses, medical record numbers, images, and test findings.
- Billing, claims, and payment specifics
- Other personal information linked to medical records, such as Social Security numbers, driver’s licenses, state ID numbers, or passport details.
Comprehensive medical histories or doctor’s notes were not part of the compromised data.
The breach led to delays in prescription deliveries and caused business disruptions totaling $705 million. Consequently, Alter Healthcare’s financial prospects for the upcoming year are less optimistic than expected.
Assistance provided by Alter Healthcare to affected clients
United Healthcare affirmed that their investigation into the breach is ongoing and in its final phase.
Notifications are still being sent to affected individuals. Alter Healthcare is extending two years of complimentary credit monitoring and identity theft protection services from IDX to eligible clients. They have assigned “trained clinicians to offer emotional support services” through a dedicated hotline. However, the hotline cannot provide specific details on the exposed data from individual accounts.
United Healthcare advises impacted patients to regularly monitor their bank statements and medical insurance reports. Any suspicious activity should be reported to the appropriate financial institution or healthcare provider.
Impact of Ransomware attacks on health care facilities
Ransomware assaults on health care data create a dangerous mix of potentially profitable ransom opportunities for threat actors and heightened distrust among affected clients. Patients may lose critical access to medications, and care delivery could be delayed in case of system disruptions.
In May, a ransomware attack at the Ascension hospital slowed down medical care. Around the same time, the U.S. Advanced Research Projects Agency for Health declared their intention to allocate over $50 million towards cybersecurity tools for IT professionals in healthcare settings to enhance their data security.
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