Hack Impacts 2.5 Million Genworth Policyholders and 769,000 Retired California Workers

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A significant cyber breach has affected a substantial number of individuals, with approximately 769,000 retired California employees and beneficiaries falling victim to Russian cybercriminals. These malicious actors gained unauthorized access to a popular file-transfer application, stealing sensitive personal information, including Social Security numbers. The breach was attributed to a third-party vendor responsible for verifying deaths. Disturbingly, this same vendor, PBI Research Services/Berwyn Group, also experienced a data breach at the hands of the same criminal gang, compromising the personal data of at least 2.5 million policyholders from Genworth Financial, a Fortune 500 insurer. The stolen information, including Social Security numbers, poses a significant risk to the affected individuals.

In response to this breach, the California Public Employees Retirement system has taken action to mitigate the damage. They are providing the affected members with two years of free credit monitoring services to help safeguard their financial well-being. Similarly, Genworth Financial has committed to offering credit monitoring and identity theft protection measures to their impacted policyholders. These measures aim to minimize the potential harm resulting from the breach.

The breach of the MOVEit file-transfer program, discovered recently, has had far-reaching consequences, affecting numerous organizations worldwide. Cybersecurity experts estimate that hundreds of organizations have fallen victim to this breach, including prominent entities such as the U.S. Department of Energy, several federal agencies, Johns Hopkins University, Ernst & Young, the BBC, and British Airways. Disturbingly, the breach has even affected the personal data of more than 9 million motorists in Oregon and Louisiana.

The criminal gang responsible for this hack, known as Cl0p, is resorting to extortion tactics. They are demanding payment from the victims under the threat of publicly exposing their stolen data. This situation highlights the increasing risks associated with supply-chain hacks, emphasizing that the overall security of a network is only as strong as its weakest link in the digital ecosystem.

The stolen data includes sensitive personal details such as names, birth dates, and Social Security numbers. It may also include information about spouses or domestic partners and children. CalPERS, taking swift action to address the breach, intends to notify the affected individuals through letters, providing them with essential information and guidance.

Genworth Financial promptly disclosed the hack on the MOVEit platform, which was managed by PBI Research, in a filing with the Securities and Exchange Commission. While it remains uncertain which other customers of PBI Research have been affected, the company’s website lists public pension funds from Nevada, New Jersey, and Tennessee among its customers for mortality verification services.

CalPERS, whose assets exceed $442 billion, expressed its strong disapproval of the breach, considering it inexcusable. CEO Marcie Frost emphasized the organization’s commitment to taking immediate action to protect the financial interests of its members and implementing long-term security measures.

Security experts stress the importance of recognizing the vulnerabilities inherent in the software used by organizations, particularly in the context of supply-chain hacks. These incidents underline the critical role of network security, which relies on the strength of every digital link within the ecosystem.

This story has been corrected to accurately reflect that Genworth disclosed the hack on Thursday, not June 16.

Correction:
Sophie Austin is a corps member for the Big Big News/Report for America Statehouse News Initiative. Report for America is a nonprofit national service program that places journalists in local newsrooms to report on undercovered issues. Follow Austin on Twitter: @sophieadanna

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• Genworth Financial
• California Public Employees Retirement System (CalPERS)
• MOVEit
• Cl0p Ransomware Gang