Virginia Health Data Potentially Held Hostage

An extortion demand seeks $10 million to return more than 8 million patient records allegedly stolen from Virginia Department of Health Professions.

Thomas Claburn, Editor at Large, Enterprise Mobility

May 4, 2009

2 Min Read
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An extortion demand posted on WikiLeaks seeks $10 million to return more than 8 million patient records and 35 million prescriptions allegedly stolen from Virginia Department of Health Professions.

The note reads: "ATTENTION VIRGINIA I have your sh**! In *my* possession, right now, are 8,257,378 patient records and a total of 35,548,087 prescriptions. Also, I made an encrypted backup and deleted the original. Unfortunately for Virginia, their backups seem to have gone missing, too. Uhoh :("

The note goes on to demand $10 million within seven days, presumably from the time the data was apparently seized on April 30, in exchange for the key to decrypt the encrypted backup.

"If by the end of 7 days, you decide not to pony up, I'll go ahead and put this baby out on the market and accept the highest bid," the note says.

It's not immediately clear whether this note is genuine. The Virginia DHP hasn't responded to repeated calls and e-mail messages seeking comment.

However, a notice posted on the DHP Web site on Monday morning acknowledged that the site "is currently experiencing technical difficulties which affect computer and e-mail systems."

A spokesperson for the Virginia Attorney General's Office said the agency could neither confirm nor deny any knowledge of an extortion demand.

A note sent to the Yahoo Mail address listed in the ransom demand also has gone unanswered.

Extortion demands of this sort have become relatively common in data breach cases. Last October, for instance, Express Scripts, a prescription drug management company based in St. Louis, received a letter that threatened the release of millions of patient records. A month earlier, a man from Solana Beach, Calif., was arrested for allegedly hacking into a Maserati dealership Web site, accessing customer data, and then threatening to release the information unless the company paid him.

The attack technique -- capturing data, encrypting it, then selling access to the former owner -- has become popular enough to earn its own name: cryptoviral extortion.


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UPDATE: In response to InformationWeek's inquiry, Sandra Whitley Ryals, director of the Virginia Department of Health Professions, said in an e-mail that "a criminal investigation is under way by federal and state authorities. We cannot speak to the details because of the ongoing criminal investigation."

About the Author

Thomas Claburn

Editor at Large, Enterprise Mobility

Thomas Claburn has been writing about business and technology since 1996, for publications such as New Architect, PC Computing, InformationWeek, Salon, Wired, and Ziff Davis Smart Business. Before that, he worked in film and television, having earned a not particularly useful master's degree in film production. He wrote the original treatment for 3DO's Killing Time, a short story that appeared in On Spec, and the screenplay for an independent film called The Hanged Man, which he would later direct. He's the author of a science fiction novel, Reflecting Fires, and a sadly neglected blog, Lot 49. His iPhone game, Blocfall, is available through the iTunes App Store. His wife is a talented jazz singer; he does not sing, which is for the best.

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