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Published on March 07, 2024
Healthcare Hacked! UnitedHealth’s Change Healthcare Tormented by Blackcat Bandits, $22M in Bitcoin Allegedly PaidSource: Unsplash/Markus Spiske

In a digital heist that's sent shockwaves through the healthcare industry, Change Healthcare, a unit under the UnitedHealthcare umbrella, suffered a massive cyberattack. The hacking fiasco, attributed to a sinister-sounding group known as ALPHV/Blackcat, reportedly led to the theft of a staggering six terabytes of private medical info, causing disruption to health services and a scramble for prescription medications.

Amidst the chaos, a leak has brought to light a possible capitulation by UnitedHealthcare, with suggestions flying that the health insurance giant coughed up $22 million in Bitcoin to the hackers. As reported by KARE 11, a Bitcoin transaction of the same amount was tracked to an account believed to belong to the Blackcat gang on March 1st, causing speculation to swirl that UnitedHealthcare may be the payer. However, a company's spokesperson kept the cards close by stating, "We are focused on the investigation and restoring operations at Change," neither confirming nor denying the payout claims.

Addressing the broader implications of such a high-profile ransom payment, cybersecurity pundit Bryce Austin shared with KARE 11 that if indeed true, this could be one of the heftiest known payouts, second only to CNA Financial's eye-watering $40 million drop. Austin illustrated the devastating choice companies face when hit by ransomware, where paying up can sometimes seem the lesser evil compared to a total shut-down, especially when jobs are at stake.

5 EYEWITNESS NEWS has reported additional information regarding the incident's financial toll on healthcare providers, citing a health analytical firm's estimates of daily losses surpassing $100 million. Meanwhile, Scott Spiro, a cybersecurity expert, provided a grim analogy on the perils of surrendering to hacker demands by comparing it to "training a dog," stating that if one gets a treat after an action, the behavior is simply reinforced, according to 5 EYEWITNESS NEWS.