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Data Breaches Cost Anthem $115M in Settlement

Posted: August 23, 2018 to Cybersecurity.

Tags: Data Breach, Digital Forensics, Malware

The largest ever recorded data breach class action lawsuit was settled against Anthem this week. California US District Judge Lucy Koh has approved a $115 million settlement. Anthem reached the deal June 23 without admitting any wrongdoing. The data breach affected 79 million Anthem members, exposing their social security numbers, names, date of birth, addresses and other personal information. The breach was first discovered by Anthem on January 27, 2015. Their system had been hacked, however, since February of 2014 when one of Anthem’s subsidiaries opened a phishing email containing malware. They have provided credit monitoring for their affected members since the discovery. Breach costs can include incident response, litigation, ongoing investigations, and cleanup. For example, Equifax has reported that the cost of its data breach is over $439 million dollars with only $125 million covered by its cybersecurity insurance policy. Although most of the settlement fund will be used to monitor the credit of the exposed members for the next two years, members may also claim up to $10,000 each to cover the out-of-pocket expenses they incurred due to the breach. In addition to the settlement fund, Anthem is required to triple its cybersecurity budget. This includes archiving databases, strict access controls, information encryption and strengthening data security controls. Contact Petronella Computer for all your cybersecurity needs.

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About the Author

Craig Petronella, CEO and Founder of Petronella Technology Group
CEO, Founder & AI Architect, Petronella Technology Group

Craig Petronella founded Petronella Technology Group in 2002 and has spent more than 30 years working at the intersection of cybersecurity, AI, compliance, and digital forensics. He holds the CMMC Registered Practitioner credential (RP-1372) issued by the Cyber AB, is an NC Licensed Digital Forensics Examiner (License #604180-DFE), and completed MIT Professional Education programs in AI, Blockchain, and Cybersecurity. Craig also holds CompTIA Security+, CCNA, and Hyperledger certifications.

He is an Amazon #1 Best-Selling Author of 15+ books on cybersecurity and compliance, host of the Encrypted Ambition podcast (95+ episodes on Apple Podcasts, Spotify, and Amazon), and a cybersecurity keynote speaker with 200+ engagements at conferences, law firms, and corporate boardrooms. Craig serves as Contributing Editor for Cybersecurity at NC Triangle Attorney at Law Magazine and is a guest lecturer at NCCU School of Law. He has served as a digital forensics expert witness in federal and state court cases involving cybercrime, cryptocurrency fraud, SIM-swap attacks, and data breaches.

Under his leadership, Petronella Technology Group has served 2,500+ clients, maintained a zero-breach record among compliant clients, earned a BBB A+ rating every year since 2003, and been featured as a cybersecurity authority on CBS, ABC, NBC, FOX, and WRAL. The company leverages SOC 2 Type II certified platforms and specializes in AI implementation, managed cybersecurity, CMMC/HIPAA/SOC 2 compliance, and digital forensics for businesses across the United States.

CMMC-RP NC Licensed DFE MIT Certified CompTIA Security+ Expert Witness 15+ Books
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