Major Cyberattack Impacts Pharmacies and Hospitals in New York

A recent cyberattack on a major healthcare provider in New York has sent shockwaves through the state's healthcare industry, underscoring the vulnerability of hospitals and pharmacies to cyber threats.

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The cyberattack, which occurred on February 21 and remains an issue a week later, has impacted pharmacies across New York, causing disruptions in filling healthcare prescriptions and raising concerns about the security of patient data.

While many smaller pharmacies across New York were impacted, chain pharmacies were not spared from the cyberattack. Reuters reports that some CVS Health and Walgreens pharmacies have reported continued issues due to the cyberattack.

The attack targeted Change Healthcare, a critical branch of UnitedHealth Group responsible for handling insurance claims and payments. This disruption affected the operations of pharmacies and has led to significant challenges for healthcare providers relying on the services of Change Healthcare.

Cybersecurity experts warn that healthcare providers and pharmacies are increasingly targeted due to the valuable data they possess. TJ Sayers, a cybersecurity expert, highlights the importance of addressing vulnerabilities promptly and providing adequate training to users to prevent falling victim to cyber threats. Many attacks exploit social engineering tactics to gain unauthorized access, making end-user training a crucial defense mechanism.

Recognizing the challenges faced by cybercrime not only in the healthcare sector but also at the local government level, the state of New York is directing nearly $6 million in grant funds to enhance cybersecurity and build cyber resiliency across municipalities.

Cyberattacks have become a troubling trend in New York with malicious intent behind the data breaches. Cybercriminals are increasingly interested in holding sensitive data hostage for ransom. As local governments possess vast amounts of sensitive information, they have become targets for such attacks.

This has prompted local governments to double down on security measures, leading to substantial increases in IT budgets which is why New York is providing federal grant money to improve cybersecurity in local governments. This funding will expand access to multi-factor authentication, strengthen the IT and cybersecurity workforce through scholarships, and offer additional training to municipal employees.