Montana Blue Cross-Blue Shield (Montana BCBS), the largest insurance carrier in Montana, experienced a severe data breach through one of its vendors. The breach lasted several months and was discovered in February but only reported to the Montana Commissioner of Securities and Insurance in October. It exposed the **financial information and medical records** of over **460,000 Montanans**, including sensitive health and personal data. The breach posed significant risks of identity theft, financial fraud, and unauthorized access to private health records. In response, the Commissioner’s office deployed an AI-powered tool to assist affected residents in safeguarding their data, freezing credit, and monitoring for identity theft. A class-action lawsuit has also been filed by impacted residents. The breach involved a third-party vendor, highlighting vulnerabilities in supply chain security and the potential for large-scale exposure of highly sensitive personal and health data.
Health Care Service Corporation cybersecurity rating report: https://www.rankiteo.com/company/hcsc
"id": "hcs1202712111125",
"linkid": "hcsc",
"type": "Breach",
"date": "2/2025",
"severity": "100",
"impact": "5",
"explanation": "Attack threatening the organization’s existence"{'affected_entities': [{'customers_affected': '460,000+',
'industry': 'healthcare/insurance',
'location': 'Montana, USA',
'name': 'Montana Blue Cross-Blue Shield (BCBS)',
'size': 'largest insurance carrier in Montana',
'type': 'health insurance provider'},
{'name': 'Unnamed Vendor of Montana BCBS',
'type': 'third-party vendor'}],
'customer_advisories': ['Do not share personally identifying information with '
'the AI tool.',
'Use the AI tool to learn about credit freezes, '
'identity theft monitoring, and insurance claims.',
'Contact the Commissioner’s office for one-on-one '
'assistance if needed.'],
'data_breach': {'number_of_records_exposed': '460,000+',
'personally_identifiable_information': True,
'sensitivity_of_data': 'high (financial + health data)',
'type_of_data_compromised': ['financial information',
'medical records']},
'date_detected': '2023-02-01',
'date_publicly_disclosed': '2023-10-01',
'date_resolved': '2023-02-01',
'description': 'A data breach at a vendor of Montana Blue Cross-Blue Shield '
'(BCBS) exposed financial and health information of over '
'460,000 Montanans. The breach lasted several months and was '
'discovered and closed in February 2023, with public '
'disclosure in October 2023. In response, the Montana '
'Commissioner of Securities and Insurance implemented an AI '
'tool to assist affected residents in safeguarding their data '
'and navigating post-breach steps. The breach has also led to '
'a class-action lawsuit by several residents.',
'impact': {'brand_reputation_impact': 'high (statewide breach affecting '
'largest insurance carrier)',
'customer_complaints': 'class-action lawsuit filed',
'data_compromised': ['financial information', 'medical records'],
'identity_theft_risk': 'high (financial and health data exposed)',
'legal_liabilities': 'class-action lawsuit',
'payment_information_risk': 'high'},
'initial_access_broker': {'high_value_targets': ['financial information',
'medical records']},
'investigation_status': 'ongoing (class-action lawsuit in progress)',
'lessons_learned': 'Proactive use of AI tools can enhance post-breach '
'resident support and triage, especially for large-scale '
'incidents with limited staff resources. Ensuring AI tools '
'are isolated from sensitive systems and comply with '
'privacy standards mitigates secondary risks.',
'post_incident_analysis': {'corrective_actions': ['Implementation of '
'AI-powered resident '
'assistance tool',
'Enhanced communication via '
'website updates',
'Encrypted and monitored AI '
'interactions to prevent '
'secondary breaches'],
'root_causes': ['third-party vendor vulnerability '
'(specifics undisclosed)']},
'recommendations': ['Implement AI-driven support tools for large-scale breach '
'responses to improve real-time assistance.',
'Ensure third-party vendors adhere to robust '
'cybersecurity standards to prevent supply-chain '
'breaches.',
'Provide clear, accessible guidance for affected '
'individuals on steps like credit freezes and identity '
'theft monitoring.',
'Monitor for patterns in resident inquiries to identify '
'unattended issues post-breach.'],
'references': [{'source': 'Daily Montanan', 'url': 'https://dailymontan.com'},
{'source': 'Montana Commissioner of Securities and Insurance',
'url': 'https://csimt.gov'}],
'regulatory_compliance': {'legal_actions': ['class-action lawsuit filed by '
'residents'],
'regulatory_notifications': ['Montana Commissioner '
'of Securities and '
'Insurance notified in '
'October 2023']},
'response': {'communication_strategy': ['public announcement',
'AI tool for resident guidance',
'website portal (csimt.gov)'],
'containment_measures': ['breach closed in February 2023'],
'enhanced_monitoring': ['AI tool interactions encrypted and '
'monitored'],
'incident_response_plan_activated': True,
'recovery_measures': ['AI tool for real-time resident support',
'website updates with breach information'],
'remediation_measures': ['implementation of AI-powered '
'assistance tool for residents']},
'stakeholder_advisories': ['AI tool for resident guidance',
'website updates with breach information'],
'title': 'Montana Blue Cross-Blue Shield Vendor Data Breach',
'type': ['data breach', 'third-party vendor compromise']}