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Change Healthcare Detects Ransomware Attack Vector

 

The cyberattack's widespread destruction underscores how threat actors can do significant damage by targeting a relatively unknown vendor that serves a vital operational function behind the scenes.

The AlphV ransomware group disrupted basic operations to the critical systems of US healthcare services by attacking a vital financial and claims processing link in a highly interconnected industry. The outage and cascading effects of the cyberattack on the healthcare IT systems continued into the fourth week on Thursday.

UnitedHealth Group reported unauthorised access on its systems on February 21. The reconnecting and testing of Change's claims systems will be completed in phases next week.

The US Department of Health and Human Services launched an inquiry into the incident on Wednesday to investigate whether protected health information was stolen and if Change met privacy and security standards. 

The department's Office for Civil Rights (OCR) announced the investigation in a letter on Wednesday, with Director Melanie Fontes Rainer writing that it was necessary to look into the situation "given the unprecedented magnitude of this cyberattack, and in the best interests of patients and health care providers." 

The statement comes following a crisis meeting on Tuesday with White House officials, medical sector leaders, HHS Secretary Xavier Becerra, and Andrew Witty, CEO of UnitedHealth Group, Change Healthcare's parent company. 

According to Fontes Rainer, the investigation will focus on whether protected health information was compromised and if Change Healthcare and UHG followed Health Insurance Portability and Accountability Act (HIPAA) requirements. 

“OCR’s interest in other entities that have partnered with Change Healthcare and UHG is secondary. While OCR is not prioritizing investigations of healthcare providers, health plans, and business associates that were tied to or impacted by this attack, we are reminding entities that have partnered with Change Healthcare and UHG of their regulatory obligations and responsibilities, including ensuring that business associate agreements are in place and that timely breach notification to HHS and affected individuals occurs as required by the HIPAA Rules,” Rainer said. 

The American Hospital Association referred to the attack as the most significant and consequential incident of its kind against the U.S. healthcare system in history.

UnitedHealth's Cyberattack Should Serve as a 'Wake-up Call' for HealthCare Sector

 

The US Health and Human Services Department (HHS) announced Tuesday that it would assist doctors and hospitals in locating alternate claims processing platforms to help restart the flow of business following a cyberattack on a UnitedHealth Group (UNH) subsidiary that crippled operations of a large swath of America's health systems for the past two weeks. 

On February 21, a cyberattack paralysed Change Healthcare, which hospitals, doctors' offices, and pharmacies use to handle payments and prior authorizations for patient visits and medicines.

United gave a lengthy status update Tuesday afternoon, stating that the attack was carried out by BlackCat, a well-known Russian-backed ransomware outfit. 

The FBI was aware of BlackCat, also known as ALPHV, and was successful in breaching the group at the end of last year, but was unable to put it down. BlackCat has previously targeted a number of healthcare companies. It claimed to have collected up to 6 gigabytes of data during the last attack, and that it received $22 million in bitcoin, a transaction visible on the blockchain, but it is still being determined where it came from. 

Based on the most recent statistics, 90% of claims are still being processed for health providers, and pharmacies should be fully operational by Thursday, UHG explained in a statement Tuesday.

Additionally, the company noted, "We've made progress in providing workarounds and temporary solutions to bring systems back online in pharmacy, claims and payments." 

While smaller systems that rely heavily on Change Healthcare are suffering, larger systems with many vendors or the financial capacity to quickly switch to another provider are less affected. 

"This may be the first of its kind, where an outage at the interoperability layer weakens the capacity of the system to function," stated Aneesh Chopra, former US chief technology officer and currently co-founder and president of CareJourney, a healthcare analytics company. "This is a wake-up call on the need for redundancy in systems so we have backup options when a particular vendor goes down.” 

Third-party risks 

Tech platforms have had difficulty allowing their software to interact with each other and provide seamless connectivity for health systems due to regulations safeguarding patient data. However, newer products have made interoperability easier to achieve, which also makes them more susceptible to attacks. 

United's attack makes sense for that reason because it choked off a key mechanism in the inner workings of the system. The change enables several healthcare system companies to handle payments and claims. For example, CVS (CVS) reports that 25% of its claims are processed using Change.

This is in stark contrast to earlier attacks that target specific organisations, such as insurance and hospitals, and affect only one aspect of the system. 

United is also a tempting target because its Optum brand comprises Optum Financial, a different division of UHG that operates a number of payment systems.