Court Rules
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SettlementMedium Risk

NY AG Fines Personal Touch $350K for Healthcare Data Breach

Personal Touch Holding CorporationOctober 18, 2023New York Attorney General

Penalty Amount

$350,000

Consumers Affected

316,845

Summary

New York Attorney General Letitia James secured a $350,000 settlement from Personal Touch Holding Corporation for failing to protect patient and employee data. A ransomware attack in January 2021 compromised the personal and medical information of approximately 316,845 New Yorkers due to inadequate security measures. As part of the agreement, Personal Touch must pay penalties, enhance its cybersecurity program, and provide free credit monitoring to affected individuals.

Remedy

Personal Touch must pay $350,000 in penalties, offer free credit monitoring and identity theft services to affected individuals, and implement a comprehensive information security program including encryption, access controls, employee training, and vendor management procedures.

Monetary PenaltyCompliance Program

Contract Impact

In-house legal teams should review all agreements involving the handling of sensitive personal or health information, particularly vendor contracts, business associate agreements (BAAs), and data processing addendums. Specific clauses to scrutinize include data security standards (requiring encryption, access controls, and MFA), incident response and breach notification obligations (including timelines and reporting requirements), audit rights for security compliance, and subprocessor management. Given the ransomware attack via a phishing email, contracts must also mandate security awareness training for the vendor's personnel. Changes may be needed to strengthen security obligations, require regular vulnerability assessments and penetration testing, mandate immediate notification of security incidents, and ensure contractual rights to audit or require certification of compliance with frameworks like HIPAA Security Rule. For healthcare data, all BAAs must explicitly incorporate HIPAA Security Rule requirements and hold vendors liable for failures leading to breaches.

Contract Search Terms

data encryption requirementincident response planHIPAA business associate agreementdata security schedulesubprocessor managementbreach notification timelinesecurity audit rightsdata retention and disposal policyphishing training provisionsmultifactor authentication clause

Laws Cited

HIPAA

Violation Types

Entity Details

Entity

Personal Touch Holding Corporation

Also known as: Personal Touch

Industry

Healthcare

Official Sources

Source Evidence

Entity Name
"Personal Touch Holding Corporation"
Fine Amount
"pay $350,000 in penalties"
Laws Cited
"Health Insurance Portability and Accountability Act (HIPAA)"
Violation Description
"failing to protect vulnerable New Yorkers’ personal information and health care data"

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