{"id":58175,"date":"2025-02-19T01:14:11","date_gmt":"2025-02-19T01:14:11","guid":{"rendered":"https:\/\/www.threatshub.org\/blog\/healthcare-outfit-that-served-military-personnel-settles-allegations-it-faked-infosec-compliance-for-11-million\/"},"modified":"2025-02-19T01:14:11","modified_gmt":"2025-02-19T01:14:11","slug":"healthcare-outfit-that-served-military-personnel-settles-allegations-it-faked-infosec-compliance-for-11-million","status":"publish","type":"post","link":"https:\/\/www.threatshub.org\/blog\/healthcare-outfit-that-served-military-personnel-settles-allegations-it-faked-infosec-compliance-for-11-million\/","title":{"rendered":"Healthcare outfit that served military personnel settles allegations it faked infosec compliance for $11 million"},"content":{"rendered":"<p>An alleged security SNAFU that occurred during the Obama administration has finally been settled under the second Trump administration.<\/p>\n<p>The case concerns Health Net Federal Services (HNFS), an outfit that provides healthcare services to military personnel, and its parent company Centene Corporation.<\/p>\n<p>The orgs will pay $11,253,400 to settle claims that HNFS falsely certified compliance with certain infosec requirements in a contract with the Department of Defense a decade ago.<\/p>\n<div aria-hidden=\"true\" class=\"adun\" data-pos=\"top\" data-raptor=\"condor\" data-xsm=\",fluid,mpu,\" data-sm=\",fluid,mpu,\" data-md=\",fluid,mpu,\"> <noscript> <a href=\"https:\/\/pubads.g.doubleclick.net\/gampad\/jump?co=1&amp;iu=\/6978\/reg_security\/front&amp;sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&amp;tile=2&amp;c=2Z7VHb-dWB_3OAvL82cPmGQAAAU4&amp;t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0\" target=\"_blank\" rel=\"noopener\"> <img decoding=\"async\" src=\"https:\/\/pubads.g.doubleclick.net\/gampad\/ad?co=1&amp;iu=\/6978\/reg_security\/front&amp;sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&amp;tile=2&amp;c=2Z7VHb-dWB_3OAvL82cPmGQAAAU4&amp;t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0\" alt> <\/a> <\/noscript> <\/div>\n<p>In agreeing to the <a target=\"_blank\" rel=\"nofollow noopener\" href=\"https:\/\/www.justice.gov\/usao-edca\/media\/1389341\/dl\">settlement<\/a>, neither Centene Corporation nor HNFS admit any guilt and, per usual with these types of court resolutions, there is &#8220;no determination of liability.&#8221;<\/p>\n<div aria-hidden=\"true\" class=\"adun\" data-pos=\"top\" data-raptor=\"falcon\" data-xmd=\",fluid,mpu,leaderboard,\" data-lg=\",fluid,mpu,leaderboard,\" data-xlg=\",fluid,billboard,superleaderboard,mpu,leaderboard,\" data-xxlg=\",fluid,billboard,superleaderboard,brandwidth,brandimpact,leaderboard,mpu,\"> <noscript> <a href=\"https:\/\/pubads.g.doubleclick.net\/gampad\/jump?co=1&amp;iu=\/6978\/reg_security\/front&amp;sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&amp;tile=4&amp;c=44Z7VHb-dWB_3OAvL82cPmGQAAAU4&amp;t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0\" target=\"_blank\" rel=\"noopener\"> <img decoding=\"async\" src=\"https:\/\/pubads.g.doubleclick.net\/gampad\/ad?co=1&amp;iu=\/6978\/reg_security\/front&amp;sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&amp;tile=4&amp;c=44Z7VHb-dWB_3OAvL82cPmGQAAAU4&amp;t=ct%3Dns%26unitnum%3D426raptor%3Dfalcon%26pos%3Dmid%26test%3D0\" alt> <\/a> <\/noscript> <\/div>\n<div class=\"adun_eagle_desktop_story_wrapper\">\n<div aria-hidden=\"true\" class=\"adun\" data-pos=\"mid\" data-raptor=\"eagle\" data-xxlg=\",mpu,dmpu,\"> <noscript> <a href=\"https:\/\/pubads.g.doubleclick.net\/gampad\/jump?co=1&amp;iu=\/6978\/reg_security\/front&amp;sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&amp;tile=3&amp;c=33Z7VHb-dWB_3OAvL82cPmGQAAAU4&amp;t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0\" target=\"_blank\" rel=\"noopener\"> <img decoding=\"async\" src=\"https:\/\/pubads.g.doubleclick.net\/gampad\/ad?co=1&amp;iu=\/6978\/reg_security\/front&amp;sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&amp;tile=3&amp;c=33Z7VHb-dWB_3OAvL82cPmGQAAAU4&amp;t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0\" alt> <\/a> <\/noscript> <\/div>\n<\/p><\/div>\n<p>Also per usual: the $11 million financial penalty isn&#8217;t even a slap on the wrist for Centene Corporation, which raked in <a target=\"_blank\" rel=\"nofollow noopener\" href=\"https:\/\/investors.centene.com\/2025-02-04-CENTENE-CORPORATION-REPORTS-2024-RESULTS\">$163.1 billion of revenue<\/a> in its most recent full financial year.<\/p>\n<p>Centene Corporation did not immediately respond to <em>The Register<\/em>&#8216;s request for comment. We will update this story if the healthcare giant sends us substantial info.<\/p>\n<div aria-hidden=\"true\" class=\"adun\" data-pos=\"top\" data-raptor=\"falcon\" data-xsm=\",fluid,mpu,\" data-sm=\",fluid,mpu,\" data-md=\",fluid,mpu,\"> <noscript> <a href=\"https:\/\/pubads.g.doubleclick.net\/gampad\/jump?co=1&amp;iu=\/6978\/reg_security\/front&amp;sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&amp;tile=4&amp;c=44Z7VHb-dWB_3OAvL82cPmGQAAAU4&amp;t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0\" target=\"_blank\" rel=\"noopener\"> <img decoding=\"async\" src=\"https:\/\/pubads.g.doubleclick.net\/gampad\/ad?co=1&amp;iu=\/6978\/reg_security\/front&amp;sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&amp;tile=4&amp;c=44Z7VHb-dWB_3OAvL82cPmGQAAAU4&amp;t=ct%3Dns%26unitnum%3D426raptor%3Dfalcon%26pos%3Dmid%26test%3D0\" alt> <\/a> <\/noscript> <\/div>\n<p>The settlement was made in relation to HNFS\u2019s administration of the Defense Health Agency&#8217;s (DHA) TRICARE health benefits program \u2014 the health plan for US military servicemembers and their families \u2014 across all or part of 22 American states, covering millions of people and their very sensitive data.<\/p>\n<p>Under the government contract, HNFS was required to &#8220;adhere to certain privacy standards and cybersecurity requirements,&#8221; according to court documents.<\/p>\n<p>Those standards included scanning for known vulnerabilities and patching security flaws in a timely manner, plus submitting an annual report to the DHA that certified compliance with certain infosec standards and privacy controls.<\/p>\n<div aria-hidden=\"true\" class=\"adun\" id=\"story_eagle_xsm_sm_md_xmd_lg_xlg\" data-pos=\"mid\" data-raptor=\"eagle\" data-xsm=\",mpu,dmpu,\" data-sm=\",mpu,dmpu,\" data-md=\",mpu,dmpu,\" data-xmd=\",mpu,dmpu,\" data-lg=\",mpu,dmpu,\" data-xlg=\",mpu,dmpu,\"> <noscript> <a href=\"https:\/\/pubads.g.doubleclick.net\/gampad\/jump?co=1&amp;iu=\/6978\/reg_security\/front&amp;sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&amp;tile=3&amp;c=33Z7VHb-dWB_3OAvL82cPmGQAAAU4&amp;t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0\" target=\"_blank\" rel=\"noopener\"> <img decoding=\"async\" src=\"https:\/\/pubads.g.doubleclick.net\/gampad\/ad?co=1&amp;iu=\/6978\/reg_security\/front&amp;sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&amp;tile=3&amp;c=33Z7VHb-dWB_3OAvL82cPmGQAAAU4&amp;t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0\" alt> <\/a> <\/noscript> <\/div>\n<p>However, according to the DOJ, between 2015 and 2018 HNFS falsely certified compliance with those controls and ignored reports from third-party security auditors.<\/p>\n<p>Plus, we&#8217;re told, the healthcare provider allegedly ignored its own internal audit of cybersecurity risks related to asset management, access controls, configuration settings, firewalls, end-of-life hardware and software in use, patch management, vulnerability scanning, and password policies.<\/p>\n<p>This potentially put millions of data describing military personnel and their families&#8217; personal and health-related info at risk.<\/p>\n<p>The Feds do not allege that any protected data was stolen or lost as a result of the apparent security oversights.<\/p>\n<p>That outcome is very fortunate. Indeed, this matter could have ended badly for everyone involved, considering that healthcare data is a <a target=\"_blank\" href=\"https:\/\/www.theregister.com\/2024\/10\/24\/ransomware_ripple_effect_hospitals\/\" rel=\"noopener\">top target<\/a> for ransomware crews and other cybercriminals looking to steal sensitive info and extort corporations to prevent its release.<\/p>\n<p>&#8220;Safeguarding sensitive government information, particularly when it relates to the health and well-being of millions of service members and their families, is of paramount importance,&#8221; said Acting US Attorney Michele Beckwith for the Eastern District of California.<\/p>\n<p>&#8220;When HNFS failed to uphold its cybersecurity obligations, it didn&#8217;t just breach its contract with the government, it breached its duty to the people who sacrifice so much in defense of our nation,&#8221; Beckwith added in a Justice Department <a target=\"_blank\" rel=\"nofollow noopener\" href=\"https:\/\/www.justice.gov\/opa\/pr\/health-net-federal-services-llc-and-centene-corporation-agree-pay-over-11-million-resolve\">statement<\/a>.<\/p>\n<p>Health Net, another Centene Corporation-owned health insurance company, was among the providers whose services were <a target=\"_blank\" rel=\"nofollow noopener\" href=\"https:\/\/www.healthnetoregon.com\/newsroom\/provider-alert-change-healthcare-cybersecurity-incident-and-its-impact-to-trillium-health-net-and-wellcare-providers.html\">disrupted<\/a> during last year&#8217;s <a target=\"_blank\" href=\"https:\/\/www.theregister.com\/2024\/03\/04\/alphv_ransom_payment\/\" rel=\"noopener\">Change Healthcare ransomware attack<\/a>. That massive digital intrusion <a target=\"_blank\" href=\"https:\/\/www.theregister.com\/2024\/02\/22\/change_healthcare_outage\/\" rel=\"noopener\">downed systems<\/a> at thousands of pharmacies and hospitals across the US and compromised protected health information belonging to at least <a target=\"_blank\" href=\"https:\/\/www.theregister.com\/2024\/10\/27\/senator_domain_registrars_russia_disinfo\/\" rel=\"noopener\">100 million individuals<\/a>. \u00ae<\/p>\n<p> READ MORE <a href=\"https:\/\/go.theregister.com\/feed\/www.theregister.com\/2025\/02\/19\/decadeold_healthcare_security_snafu_settled\/\">HERE<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>If this makes you feel sick, knowing this happened before ransomware actors started targeting medical info may help An alleged security SNAFU that occurred during the Obama administration has finally been settled under the second Trump administration.\u2026  READ MORE HERE&#8230;<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"colormag_page_layout":"default_layout","footnotes":""},"categories":[63],"tags":[],"class_list":["post-58175","post","type-post","status-publish","format-standard","hentry","category-the-register"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.6 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Healthcare outfit that served military personnel settles allegations it faked infosec compliance for $11 million 2026 | ThreatsHub Cybersecurity News<\/title>\n<meta name=\"description\" content=\"ThreatsHub Cybersecurity News | ThreatsHub.org | Cloud Security &amp; Cyber Threats Analysis Hub. 100% Free OSINT Threat Intelligent and Cybersecurity News.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link 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