CBR Systems Inc., a cord blood bank vendor, has settled with the Federal Trade Commission and agreed to a proposed consent order to improve its information security practices following a major breach of protected health information in December 2010.
Under the order, which does not include an admission of violating any laws, the company further agreed to submit to independent security audits every other year for 20 years. The breach occurred when an unencrypted laptop and unencrypted hard drive were stolen from the car of an employee. Data compromised for approximately 298,000 individuals included some or all of the following: name, gender, date and time of birth, Social Security number, drivers’ license number, email address, phone number, and type of adoption. The FTC also charged that network information on the devices such as passwords and protocols put additional personal health information at risk.
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