Dark Reading is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Attacks/Breaches

WellPoint Sued For Delay In Disclosing Security Breach

Indiana Attorney General seeks $300,000 for failure to comply with state law

The Indiana Attorney General's office today filed a lawsuit against WellPoint Inc., claiming the health insurance provider did not notify its customers or the Attorney General's office in a timely manner following a data breach earlier this year affecting more than 32,000 customers.

The lawsuit seeks payment of $300,000, according to news reports.

Indiana law requires businesses to notify both the individuals potentially affected by a data breach, as well as the Attorney General's office, "without unreasonable delay."

Applications for insurance policies submitted to WellPoint containing Social Security numbers, financial information, and health records were potentially available to the general public through an unsecured Internet website for a period of at least 137 days between October 2009 and March 2010, the attorney general's office said.

According to the state's complaint, WellPoint was notified on Feb. 22 of this year -- and again on March 8 -- that application records containing personal information were accessible through its public website.

WellPoint did not begin notifying customers of the security breach until June 18, the complaint says. Following news reports of the breach, the attorney general's office submitted an inquiry to WellPoint and received a response on July 30. The delays in notice both to customers and to the attorney general's office are considered unreasonable, the complaint says. The state is seeking $300,000 in civil penalties.

"While most inadvertent security breaches do not result in fraud, notifying those affected in a timely manner significantly reduces the risk of identity theft," the attorney general's office says. "Situations involving the theft of personal information for the purposes of identity theft most often result in some form of fraud occurring within seven to 10 days."

The attorney general's office sajd it has not received any consumer complaints relating to identity theft as a result of the WellPoint data breach. The Indiana Attorney General's Identity Theft Unit continues to investigate the WellPoint data breach and encourages those who may have been affected to perform a credit check and security freeze to guard against identity theft.

Have a comment on this story? Please click "Discuss" below. If you'd like to contact Dark Reading's editors directly, send us a message.

Tim Wilson is Editor in Chief and co-founder of Dark Reading.com, UBM Tech's online community for information security professionals. He is responsible for managing the site, assigning and editing content, and writing breaking news stories. Wilson has been recognized as one ... View Full Bio

Comment  | 
Print  | 
More Insights
Comments
Newest First  |  Oldest First  |  Threaded View
Navigating Security in the Cloud
Diya Jolly, Chief Product Officer, Okta,  12/4/2019
SOC 2s & Third-Party Assessments: How to Prevent Them from Being Used in a Data Breach Lawsuit
Beth Burgin Waller, Chair, Cybersecurity & Data Privacy Practice , Woods Rogers PLC,  12/5/2019
Register for Dark Reading Newsletters
White Papers
Video
Cartoon Contest
Write a Caption, Win a Starbucks Card! Click Here
Latest Comment: Our Endpoint Protection system is a little outdated... 
Current Issue
Navigating the Deluge of Security Data
In this Tech Digest, Dark Reading shares the experiences of some top security practitioners as they navigate volumes of security data. We examine some examples of how enterprises can cull this data to find the clues they need.
Flash Poll
Rethinking Enterprise Data Defense
Rethinking Enterprise Data Defense
Frustrated with recurring intrusions and breaches, cybersecurity professionals are questioning some of the industrys conventional wisdom. Heres a look at what theyre thinking about.
Twitter Feed
Dark Reading - Bug Report
Bug Report
Enterprise Vulnerabilities
From DHS/US-CERT's National Vulnerability Database
CVE-2014-3656
PUBLISHED: 2019-12-10
JBoss KeyCloak: XSS in login-status-iframe.html
CVE-2013-0293
PUBLISHED: 2019-12-10
oVirt Node: Lock screen accepts F2 to drop to shell causing privilege escalation
CVE-2013-1793
PUBLISHED: 2019-12-10
openstack-utils openstack-db has insecure password creation
CVE-2013-2095
PUBLISHED: 2019-12-10
rubygem-openshift-origin-controller: API can be used to create applications via cartridge_cache.rb URI.prase() to perform command injection
CVE-2019-19698
PUBLISHED: 2019-12-10
marc-q libwav through 2017-04-20 has a NULL pointer dereference in wav_content_read() at libwav.c.