Consumers Affected
4,000,000
Texas Attorney General Ken Paxton issued Civil Investigative Demands to Blue Cross Blue Shield of Texas and Conduent Business Services LLC as part of an investigation into a massive data breach at Conduent that exposed the protected health information of approximately four million Texans. The breach occurred between October 21, 2024 and January 13, 2025, affecting Texas Medicaid recipients and other residents. The AG's office is investigating the security failures and compliance with Texas law.
In-house legal teams should review all contracts with third-party service providers handling protected health information or other sensitive consumer data, ensuring they include robust data security safeguard requirements, clear breach notification timelines, and liability provisions for security failures. Contracts with vendors processing health data should specifically require compliance with applicable state and federal health privacy laws, regular security audits, and incident response protocols. Additionally, teams should verify that vendor agreements include provisions for prompt notification of any unauthorized access to data, as well as indemnification for breaches caused by vendor negligence.
Entity
Blue Cross Blue Shield of Texas and Conduent Business Services LLC
Also known as: Blue Cross Blue Shield and Conduent
Industry
Insurance"Blue Cross Blue Shield of Texas (“BCBS”) and Conduent Business Services LLC (“Conduent”)"
"exposed the sensitive personal data of approximately four million Texans"
"breach of Conduent’s system security that occurred between October 21, 2024 through January 13, 2025. During the breach, an unauthorized third-party accessed the protected health information of Texas residents, including Texas Medicaid recipients"
"Attorney General Ken Paxton"
"part of the investigation of the Conduent data breach"
"any insurance giant cut corners"
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