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                  VA NEWS FLASH
from Larry Scott at VA Watchdog dot Org -- 06-07-2007 #2
 


 

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VA LIMITS USE OF PORTABLE DATA -- Device restrictions

part of push to halt broader privacy breaches.

 

 

Background on VA buying secure thumb drives here...
http://www.fcw.com/article102707-05-14-07-Web

Story here... http://www.charlotte.
com/business/story/149046.html

Story below:

-------------------------

VA limits use of portable data

Device restrictions part of push to halt broader privacy breaches

STELLA M. HOPKINS
shopkins@charlotteobserver.com



The VA, struggling with repeated privacy breaches, is imposing new limits on the use of popular portable storage devices called thumb drives starting today.

The drives, about the size of a thumb, can hold huge amounts of data and are sometimes carried on lanyards or key chains. The VA now allows only encrypted, agency-issued thumb drives, according to a June 1 memo obtained by the Observer.

"Despite aggressive efforts to eliminate carelessness and disregard of VA policy ... there have been several recent cases of lost or abandoned thumb drives," wrote Robert Howard, an assistant secretary with the Veterans Affairs Department. He added that the drives contained sensitive personal and medical information, but he provided no specifics. The VA couldn't say Tuesday how many losses had occurred.

For years, the VA's watchdog arm urged the huge agency to better safeguard personal information entrusted to it by millions of veterans and 235,000 employees, but problems persist.

Last year, the agency vowed action after the May theft of a laptop with the records of 26 million veterans -- one of the largest U.S. privacy breaches. Eight months later, in January, a VA employee lost a hard drive with personal and billing information for 1.37 million doctors and other health care providers. The VA didn't notify some caregivers until last month that their Social Security numbers and other data were lost.

From July through February, the VA reported about 3,600 incidents to its cyber-security group, Maureen Regan with the VA's Office of Inspector General told Congress in February. The lapses included stolen and lost laptops, unauthorized access and many cases of unencrypted e-mail messages with sensitive information, said Regan, a lawyer.

VA Secretary James Nicholson warned agency leaders.

"It is now clear to me that there are still too many VA employees ... who either still do not comprehend the seriousness of this issue, or who consciously disregard its seriousness," he said in a Feb. 15 memo. "This laxity is unacceptable, and will no longer be tolerated."

Data breaches often do not result in identity theft, but there's no way to say which records will be tapped to drain bank accounts, obtain credit cards, take loans or otherwise wreak havoc. And the opportunity for loss is growing with the use of laptops and other portable devices. In a memo last fall, Nicholson said he was especially worried about the easily lost thumb drives.

VA spokesman Matt Smith said Tuesday that it was "aggressively deploying" newly purchased encrypted thumb drives to employees this week.

"We've been harping on thumb drives for a long time because they're just so mobile," said Pam Dixon, head of the World Privacy Forum in San Diego. "The more mobile, the more risk."

Response criticized

Dr. Paul Karmin, a former radiologist at the Salisbury veterans hospital, said he received a letter May 16 from the VA advising that his information was on the drive lost in January."I am highly concerned that my Social Security number and other critical data has been compromised by VA without my consent, and that they delayed letting me know about it," said Karmin, who has said he was pushed out in 2003 after urging changes to improve patient care. "I am being forced to protect my ID for the rest of my life."

The VA got the records -- including Social Security numbers, dates of birth and license numbers -- from the Centers for Medicare and Medicaid Services for a research project. The VA said the list included doctors, nurses, psychologists, social workers and chiropractors.

Their lost data poses a risk beyond personal ID theft because the data could be used to falsely bill Medicare for health care.

Medicare spokesman Jeff Nelligan said the agency is reviewing its policies for sharing information with outsiders.

Some of the National Association of Social Workers' 150,000 members are among those who received letters dated May 9. The group called the four-month gap "an inappropriate delay" and asked Nicholson to explain.

The VA said it worked with Medicare on the problem through March and began notifying caregivers in April.

VA investigators criticized the agency last year for its sluggish response to the May data loss, saying agency information security officials "reacted with indifference and little sense of urgency or responsibility."

More than 600,000 caregivers whose records were on the hard drive lost in January and "whose Social Security numbers may be at risk" are being offered free credit monitoring, said spokeswoman Karen Fedele. The VA did not answer questions about how it identified those at risk.

Dr. Janet Munroe, formerly a radiologist at the veterans hospital in Augusta, Ga., received a letter. Munroe, who in 2005 joined the Medical College of Georgia, said, "You work for the federal government, and you assume you are very secure."

What's the VA Doing?

The VA is consolidating its computer systems and other information technology activities into one department in part to improve data security. That creates a department of more than 5,500 full-time workers with an expected budget next year of $1.9 billion. The reorganization is scheduled to be complete next year.

To improve security, the agency spent about $5 million on encryption after last year's biggest data loss. Yet the data in the big January loss was not encrypted.

"This represents a failure ... that may be widespread throughout our Department," VA Secretary James Nicholson said in a notice to agency leaders.

The agency also says it has undertaken 24-7 monitoring of reported incidents and onsite security and privacy inspections.

 

Stella Hopkins: 704-358-5173

-------------------------

Larry Scott  --

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