South Carolina Insurance data stolen: Notofication sent after two months

January 9th, 2014 by admin Leave a reply »

State mandated health insurance program in S.C. notified customers about laptop theft which has occurred two months earlier according to website, GoUpstate.com. The laptop belonged to one of the company’s auditor and reportedly it was password protected, the laptop was stolen from individual’s car. Information about stolen laptop was notified to the police next day and the SC Health Insurance Pool.

SC Health Insurance Pool, run by the SC Department of Insurance had hired Columbia accounting firm DeLoach & Williamson to review their claims and payments. The laptop had important personal information like patient names, dates of service, provider identification numbers, and Social Security numbers as per The Post and Courier. In total 3,432 customers were affected who earlier used the program in 2011 and 2012.

Personal information may lead to data theft due to possible violation of company policy as per the Attorneys for DeLoach. It is prohibited to leave laptop in vehicle unattended which leads to theft. The pool mentioned that it does not allow employees to take customer information outside company offices.

Despite theft knowledge within week, customers were not informed. All the affected customers were mailed about the incident.

“First, we had to determine what type of information was included,” Cynthia Hutto of Nelson Mullins Riley & Scarborough said. Apparently delay was caused due to the process of information collection for mailing address and setting up free credit monitoring. Cost for same is covered for one year by the auditor and respective mailing notification is sent for same.

With the present scenario it is advisable to have security software which prevents major data loss. With the possible penalty of breach and potential loss of customers trust more stringent security measures has to be applied. Encryption software greatly enhances the security of your organization’s data as the information is not compromised if a laptop is lost or stolen.

Alertsec Xpress is the full disk encryption service that delivers a mobile data protection system for all information stored on laptops used throughout your organization.

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