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Privacy and Security

Friday, October 14, 2011

Pentagon Hit With $4.9B Class-Action Lawsuit Over Data Breach

A veteran and a military family have filed a class-action lawsuit against the Department of Defense, seeking $4.9 billion in damages from a recent data breach affecting 4.9 million beneficiaries of TRICARE, NextGov reports (Brewin, NextGov, 10/13).

TRICARE provides health benefits for military personnel, retirees and their families.

Background on Data Breach

Science Applications International Corporation -- the DOD contractor responsible for the breach -- said the incident involved the loss of backup computer tapes from an electronic health record system. SAIC reported the breach on Sept. 14.

The tapes contained data on TRICARE beneficiaries who received care at military facilities between 1992 and Sept. 7. Affected beneficiaries are residents of TRICARE's southern region.

According to officials, the patient data on the magnetic tapes include:

  • Addresses;
  • Personal health information;
  • Phone numbers; and
  • Social Security numbers (iHealthBeat, 9/29).

Details of Lawsuit

The suit, filed in the U.S. District Court for the District of Columbia, seeks $1,000 in damages for each affected beneficiary, no-cost credit monitoring and an order prohibiting TRICARE from moving records off government property unless they are fully encrypted.

The plaintiffs allege that TRICARE failed to take the necessary precautions to protect patients' privacy, noting that the data stored on the stolen computer tape were "unprotected, easily copied" and that TRICARE "inexplicably failed to encrypt the information."

The lawsuit argues TRICARE "compounded its dereliction of duty by authorizing an untrained or improperly trained individual to take the highly confidential information off of government premises and to leave unencrypted information in an unguarded car."

SAIC was not named as a defendant in the case.

Although TRICARE downplayed the likelihood of someone being able to access the information on the stolen tape when announcing the data breach last month, the plaintiffs argued that "personal information on the computer tape could be retrieved by the name of an individual or by an identifying number, symbol or other identifying data assigned to an individual."

TRICARE declined to comment on the lawsuit (NextGov, 10/13).



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