Id Theft Alerts

July 21, 2011
Breach Costs $100,000
wellpoint
WellPoint Inc. has agreed to pay a $100,000 fine for waiting months to notify Indiana customers of a data breach. The agreement also requires the company to provide two years of credit monitoring and pay them up to $50,000 for any loss related to the breach.

The breach occurred between October 2009 and March 2010 when computer tapes were stolen. The tapes contained the personal information of 645,000 customers nationwide. The company waited 127 days to notify them of the breach. [story]
Breach Costs $865,000

If you ever wondered what fame buys you then here is the answer. WellPoint exposed 645,000 customers and pays $100,000. The information for two celebrities was exposed at UCLA and the fine was $865,000. I won't say one agreement is too big or one agreement is too small but I will say the contrast is shocking.
 
HIPAA Audit Firm Choosen 

The Department Health and Human Services' Office for Civil Rights (OCR) has chosen an audit firm for HIPAA compliance. The audits will be done on covered entities as part of the HITECH rules. KPMG will perform the audits and is expected to have 150 done by the end of 2012.

 

Will this be a model that is expanded to other industries? Experts weigh in. 
Breech Law Gets a New Draft

Representative Mary Bono Mack of California, released a new version of his bill for data breach notification rules. He released the bill to the House Energy and Commerce Subcommittee on Commerce. The aim of the bill is to replace the patchwork of state laws with one national standard. The committee is expected to take up the bill this week.

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