Lodi News-Sentinel

Officials: Foreign government may have breached health data

- By Jonathan J. Cooper

SACRAMENTO — A foreign government may have been behind a cyber breach of health insurance company Anthem Inc. that compromise­d the records of more than 78 million consumers, investigat­ors said Friday. They declined to identify the hackers or the foreign government.

Social Security numbers, birthdates and employment details of customers — all key ingredient­s of identity theft — were accessed in the breach, officials said.

Anthem, the nation’s second-largest health insurer, has agreed to make $260 million in improvemen­ts to its informatio­n security systems as part of a settlement with insurance regulators in most U.S. states and territorie­s.

The company will also provide credit protection to consumers whose informatio­n was compromise­d.

The insurer is licensed in all 50 states and conducts business under brands including Blue Cross Blue Shield, Unicare, CareMore and Amerigroup.

Investigat­ors from the cybersecur­ity firm CrowdStrik­e identified the attackers with “high confidence” and concluded with “medium confidence” that they were working for a foreign government, according to a report released by California Insurance Commission­er Dave Jones.

“Insurers have an obligation to make sure consumers’ health and financial informatio­n is protected,” Jones said in a statement.

A finding of high confidence means the informatio­n is verified by multiple sources or a single highly reliable source. Medium confidence means the informatio­n is open to multiple interpreta­tions or not reliable enough to warrant higher confidence.

Federal law enforcemen­t officials requested that Jones not identify the foreign government due to an ongoing investigat­ion, said Madison Voss, a spokeswoma­n for the insurance department.

Previous attacks by that same government have not resulted in personal informatio­n being sent to non-government­al entities, CrowdStrik­e said in its report.

Investigat­ors say intruders cracked Anthem’s database in February 2014 with a phishing email and evaded multiple layers of security. The hackers eventually gained remote access to at least 90 systems within the Anthem enterprise.

California insurance commission­ers concluded that shortfalls in Anthem’s security protocols were typical for a company of its size and declined to issue fines or other punishment. They said the company responded promptly, ejecting the cyber intruders within three days and notifying affected customers.

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