Hackers Steal, Encrypt Health Records and Hold Data for Ransom

As more patient records go digital, a recent hacker attack on a small medical practice shows the big risks involved with electronic files.

The Surgeons of Lake County, located in the affluent northern Illinois suburb of Libertyville, revealed last month that hackers had burrowed deeply into its computer network, infiltrating a server where e-mails and electronic medical records were stored. But unlike many other data breaches, the hackers made no attempt to keep their presence a secret. In fact, they all but fired a flare to announce the break-in, taking the extreme step of encrypting their illicit haul and posting a digital ransom note demanding payment for the password. The doctors turned the server off and notified the authorities, refusing to pay.