Health Law Scan

Shortly after our prior blog post discussing the need for healthcare entities to shore up protections against phishing attacks, the Department of Health and Human Services (HHS) and the Federal Bureau of Investigation (FBI) released a joint cybersecurity advisory (CSA) to alert members of the healthcare industry of indicators of compromise and tactics, techniques, and procedures used in phishing social engineering campaigns. This recent guidance underscores that phishing attacks have the attention of the FBI and HHS, and that health systems should proactively update their policies, procedures, and security to remain compliant with industry standards.

Phishing, the act of impersonating a person or business to deceive a target into revealing sensitive information, has quickly become the tool of choice for scammers and cybercriminals. In 2023, the Federal Bureau of Investigation’s (FBI’s) Internet Crime Complaint Center noted that there were 298,878 complaints of phishing, a significant increase from the 114,702 cases reported in 2019.

The new Civil Cyber-Fraud Initiative of the US Department of Justice’s use of the punitive False Claims Act (FCA) and its whistleblower provisions has some important legal and risk management considerations for the health industry. Because enforcement will initially occur largely through civil investigations applying the FCA in the broadest possible way, healthcare organizations should undertake a priority assessment of their cybersecurity status to ensure that their practices can withstand hacks, whistleblowers, and government scrutiny.

Ransomware attacks are increasing in their severity and sophistication, with healthcare companies being significant targets. Ransomware actors often target businesses believed to have fewer resources to invest in cyber protection, as well as those holding sensitive data, in the hopes that they will be more likely to make a quick ransom payment.

Members of our labor and employment team recently published a LawFlash discussing the US Department of Labor’s (DOL’s) April 14 issuance of three pieces of subregulatory guidance addressing the cybersecurity practices of retirement plan sponsors, vendors, and plan participants respectively. This resource, which includes our team’s analysis and observations, may be of particular interest to employers in the healthcare sector, who are all too familiar with how important it is to keep data secure.