Everything About The Largest Data Breach Settlement Of All Time
There are more or less 45 data that are stolen and lost every second. When this happens to a company, it will put all of their data records at risk. The clients of these businesses will also be at risk, since they have their personal information. If this happens the clients will no longer trust the company and can even sue them. Unfortunately data breaches happen all the time.
The largest data breach settlement happened to the U.S department of health and human services and the Advocate health care. The U.S Department of health and human services settled with the price of $5.5 million with the Advocate health care. The Advocate Health Care violated the Health Insurance Portability and Accountability Act also known as the HIPAA. The Health Insurance Portability and Accountability Act protects the personal health information of people so it will not go to the wrong hands. Every health care provider makes sure that the patients personal information are safe. There were at least 4 million personal health information that was stolen. The credit card number, the name, the health insurance and the address of every patient was included in the personal health information. The exposure of the these personal health information happened in the month of August in the year 2013 after four desktops were stolen in the Advocate health office that is located in Park Ridge Illinois. These desktop computers actually has the information of millions of local patients. Then another incident happened. After the hackers can now open the billing services of the Advocate Health care office. During the second incident, the hackers exposed at least 2,000 health information of patients. Then another data breach happened in the month of November in the year 2013. There was a desktop computer in a vehicle and it was stole. The breach stole 2,230 important and personal health information. The Health Insurance Portability and Accountability Act started to do their investigation after the Advocate of health office had reported all of these data breaches.
The law states that every health care provider must protect the personal health information of their clients. The result of the investigation of the Health Insurance Portability and Accountability Act is that the Advocate of health violated this law. They should have not left their desktop computers in unlocked vehicles and they did not do protective measures. The Advocate of health care is at fault since they did not secure a written contract from the billing subsidiary. The written contract should have the protection of the information that is in their electronic devices. The advocate health care is known as the largest health care provider in Illinois.
It is very important that health care providers protect their company and even their patients.