Group items tagged

Indianapolis - New developments suggest another drug store giant may face punishment for trashing your privacy. Now, Walgreens wants to settle its case - whether the state wants to or not. 13 Investigates discovered personal information in drugstore dumpsters in Indiana and across the country. WTHR exposed the problem at CVS and Walgreens pharmacies three years ago, and the Indiana attorney general's office has been investigating ever since. Walgreens says it finally has a settlement with the state - or does it? "We reached an agreement on the material terms of a settlement agreement," Walgreens attorney Stacy Cook told the Indiana Pharmacy Board Monday morning. The attorney general's office disagreed. "There was never an agreement that was reached," said Deputy Attorney General Morgan Wills. The attorneys met with the pharmacy board at Walgreen's request because the nation's second-largest drug store retailer says it had a deal the attorney general's office backed out on. "It's simply that they've changed their mind," Cook said. The attorney general's office admits it had started to negotiate terms of a settlement with Walgreens in January, but the state later decided to halt its settlement negotiations when the federal government announced a $2.25 million settlement with Walgreens' rival CVS.

A former Goldman Sachs computer programer accused of stealing secret trading codes from the investment bank was being held in federal custody on Monday, pending the posting of $750,000 bail. Sergey Aleynikov, 39, was ordered by U.S. Magistrate Kevin Nathaniel Fox in Manhattan on Saturday to post a $750,000 personal recognizance bond to be secured by three financially responsible people, according to court documents. The bond also was to include $75,000 in cash, and Aleynikov was ordered to surrender his passport and not to access the computer data at issue in the case. A preliminary hearing in his case was scheduled for August 3. Aleynikov, a Russian immigrant living in New Jersey, was arrested on Friday night by FBI agents as he got off a flight at Newark Liberty International Airport, according to court documents. He is accused of "theft of trade secrets" related to computer codes used for sophisticated automated stock and commodities trading at an unspecified, New York-based financial institution, according to the court affidavit filed by FBI special agent Michael McSwain. Sources familiar with the situation have told Reuters columnist Matthew Goldstein that the financial institution is Goldman Sachs. A Goldman representative declined to comment on Monday. A lawyer for Aleynikov, Sabrina Shroff, also declined to comment.

The U.S. Department of Justice's indictment of Albert Gonzalez on Monday seems to have all the elements of a Hollywood crime drama: A hacker gains access to millions of credit and debit card numbers and has the power to take down a nation. Too bad for Tinseltown, the attack itself was about as sexy and a pile of routers. According to the indictment, Gonzalez, 28, gained a foothold into the systems of credit card processors such as Heartland Payment Systems ( HPY - news - people ) and retailers like OfficeMax ( OMX - news - people ), Barnes & Noble ( BKS - news - people ) and TJX Cos. ( TJX - news - people ) using an amateur hacking technique called "wardriving," which uses wireless access points to find vulnerable networks from which to launch attacks. Once connected to those private networks, Gonzalez used a well-known technique called "SQL injection" to trick Web applications into forking over private information that gave him deeper access into networks. Even though it sounds complicated, techies liken this kind of hack to simply turning the front doorknob to get into a house.

Some American Express card members' accounts may have been compromised by an employee's recent theft of data, the company said Thursday. American Express Co. spokeswoman Susan Korchak said a "relatively small portion" of card members was involved, but declined to be more specific. The former employee has been arrested and the company is investigating how the data was obtained, she said. The company is in the process of notifying affected card members by letter. In one such letter sent last week, American Express Privacy Officer Alfred Silipigni said he was informing the member of "an unfortunate issue" concerning his card. "We recently learned that certain account data was acquired without authorization by an employee who is no longer with the company," he wrote. "The former employee has been arrested, and we are cooperating with law enforcement authorities with their ongoing investigation." American Express declined to disclose any more details about the incident beyond what was in the letter. The company has put additional fraud monitoring and protection controls on the accounts at issue, Korchak said. American Express has about 39 million corporate, small business and consumer cards in force in the United States.

Network Solutions Hack Compromises 573,000 Credit, Debit Accounts Hackers have broken into Web servers owned by domain registrar and hosting provider Network Solutions, planting rogue code that resulted in the compromise of more than 573,000 debit and credit card accounts over the past three months, Security Fix has learned. Herndon, Va. based Network Solutions discovered in early June that attackers had hacked into Web servers the company uses to provide e-commerce services - a package that includes everything from Web hosting to payment processing -- to at least 4,343 customers, mostly mom-and-pop online stores. The malicious code left behind by the attackers allowed them to intercept personal and financial information for customers who purchased from those stores, Network Solutions spokeswoman Susan Wade said.

The loss of personally identifiable information, such as an individual's Social Security number, name, and date of birth can result in serious harm, including identity theft. Identity theft is a serious crime that impacts millions of individuals each year. Identity theft occurs when such information is used without authorization to commit fraud or other crimes. While progress has been made protecting personally identifiable information in the public and private sectors, challenges remain. GAO was asked to testify on how the loss of personally identifiable information contributes to identity theft. This testimony summarizes (1) the problem of identity theft; (2) steps taken at the federal, state, and local level to prevent potential identity theft; and (3) vulnerabilities that remain to protecting personally identifiable information, including in federal information systems. For this testimony, GAO relied primarily on information from prior reports and testimonies that address public and private sector use of personally identifiable information, as well as federal, state, and local efforts to protect the security of such information. GAO and agency inspectors general have made numerous recommendations to agencies to resolve prior significant information control deficiencies and information security program shortfalls. The effective implementation of these recommendations will continue to strengthen the security posture at these agencies. Identity theft is a serious problem because, among other things, it can take a long period of time before a victim becomes aware that the crime has taken place and thus can cause substantial harm to the victim's credit rating. Moreover, while some identity theft victims can resolve their problems quickly, others face substantial costs and inconvenience repairing damage to their credit records. Some individuals have lost job opportunities, been refused loans, or even been arrested for crimes they did not commit as a result of identit

The loss of personally identifiable information, such as an individual's Social Security number, name, and date of birth can result in serious harm, including identity theft. Identity theft is a serious crime that impacts millions of individuals each year. Identity theft occurs when such information is used without authorization to commit fraud or other crimes. While progress has been made protecting personally identifiable information in the public and private sectors, challenges remain. GAO was asked to testify on how the loss of personally identifiable information contributes to identity theft. This testimony summarizes (1) the problem of identity theft; (2) steps taken at the federal, state, and local level to prevent potential identity theft; and (3) vulnerabilities that remain to protecting personally identifiable information, including in federal information systems. For this testimony, GAO relied primarily on information from prior reports and testimonies that address public and private sector use of personally identifiable information, as well as federal, state, and local efforts to protect the security of such information. GAO and agency inspectors general have made numerous recommendations to agencies to resolve prior significant information control deficiencies and information security program shortfalls. The effective implementation of these recommendations will continue to strengthen the security posture at these agencies. Identity theft is a serious problem because, among other things, it can take a long period of time before a victim becomes aware that the crime has taken place and thus can cause substantial harm to the victim's credit rating. Moreover, while some identity theft victims can resolve their problems quickly, others face substantial costs and inconvenience repairing damage to their credit records. Some individuals have lost job opportunities, been refused loans, or even been arrested for crimes they did not commit as a result of identit

The Kaiser Permanente hospital in Bellflower has been hit with a $187,500 fine for failing for a second time to prevent unauthorized access to confidential patient information, state pubic health officials said today. [Updated at 3 p.m.: A spokesman for the hospital said the fine was part of the ongoing investigation into employees improperly accessing the medical records of Nadya Suleman and her children. Disciplinary action has been taken against the employees, said Jim Anderson, a hospital spokesman. All the incidents occurred in January; a previous post said they had occurred in April and May.] State officials said Kaiser Permanente Bellflower Medical Center compromised the privacy of four patients when eight employees improperly accessed records. This is the second penalty against the hospital, officials said. The hospital was fined $250,000 in May for failing to keep employees from snooping in the medical records of Nadya Suleman, the woman who set off a media frenzy after giving birth to octuplets in January. The fine was the first penalty imposed and largest allowed under a new state law enacted last year after the widely publicized violations of privacy at UCLA Medical Center involving Farrah Fawcett, Britney Spears, California First Lady Maria Shriver and other celebrities. "We are very concerned with violations of patient confidentiality and their potential harm to the residents of California," said Dr. Mark Horton, director of the California Department of Public Health. "Medical privacy is a fundamental right and a critical component of quality medical care in California."

Beyond PCI: Other Regulations to Look For in 2009 Just a few days ago, the Federal Reserve, the Office of Thrift Supervision and the National Credit Union Administration announced the enactment of comprehensive new rules regarding card practices. These rules, which will not take effect until July 1, 2010, impose restrictions on a number of controversial issuer practices, including interest rate increases, late fees and double-cycle billing. Many industry observers predict that the rules will result in less credit being made available, and on stricter terms, than has been the case over the last several years. These rules may not be the end of the matter. Rep. Carolyn Maloney (D-NY), who in 2008 introduced the Credit Cardholders' Bill of Rights Act of 2008 (which sought to regulate many of the same practices as the then-proposed Fed rules), stated that she was disappointed in the delayed effectiveness of the Fed rules and promised to revive the Credit Cardholders' Bill of Rights in 2009 to, as she put it, "bridge the gap" between now and the effective date of the Fed rules.

Healthcare organizations are losing more than just names, addresses and Social Security numbers. When their data gets stolen, patients lose the privacy of their medical conditions, treatments and medications while at the same time falling prey to identity theft, medical billing fraud and other criminal schemes. Theft of electronic medical records is on the rise, and the implications are getting more serious. In a 2008 survey of identity theft victims, the Identity Theft Resource Center found that 67% had been charged for medical services they never received and 11% were denied health or life insurance due to unexplained reasons.

"The U.S. Department of Health and Human Services issued an interim final rule to beef up penalties for violations of the Health Insurance Portability and Accounting Act (HIPAA), as several Congressmen criticize the agency for leaving dangerous loopholes in the law. The new rules significantly increase penalty amounts that the U.S. Department of Health and Human Services can impose for HIPAA violations of patient privacy, according to a statement from HHS. The new rules reflect requirements enacted in the Health Information Technology for Economic and Clinical Health (HITECH) sections of the American Recovery and Reinvestment Act (ARRA) of 2009. Before HITECH, maximum penalties were $100 for each violation or $25,000 for all identical violations of the same provision. A covered health care provider, health plan, or clearinghouse could be exempt from civil financial penalties if it demonstrated it did not know it violated the HIPAA rule. The HITECH act increases civil financial penalties by establishing tiered ranges of increasing minimum penalties, with a maximum $1.5 million for all violations of identical provisions. And a "covered entity" can plead ignorance as a protection only if it fixes the violation within 30 days of discovery."