Penalty Amount
$2,640,000
Consumers Affected
887,871
Connecticut and New York found that Boston Children’s Health Physicians and its security vendor, XTIUM, failed to use reasonable safeguards, resulting in hackers accessing sensitive personal, medical, and employee information. The companies agreed to pay penalties totaling $2.64 million and implement enhanced cybersecurity measures.
The companies must pay $2.1 million to New York and $540,000 to Connecticut, and adopt cybersecurity measures including a comprehensive information security program, a data inventory, reasonable authentication procedures, logging and monitoring, and enhanced threat response procedures. Additional penalties are payable if BCHP violates the settlement terms.
Review healthcare vendor and data-processing agreements for explicit allocation of security responsibilities, required security assessments, minimum safeguards, encryption, access controls, logging and monitoring, and incident-response cooperation. Vendor agreements should require prompt breach notification, investigation support, and remediation, and should address subcontractor oversight and audit rights. Customer-facing privacy notices and data-processing terms should accurately describe protections for sensitive medical and financial information; employee data agreements and policies should also cover safeguards for workforce information.
Entity
Boston Children’s Health Physicians and XTIUM
Industry
Healthcare"Boston Children’s Health Physicians (BCHP), a New York-based pediatric health network, and XTIUM, an IT management company"
"$2.1 million penalty to New York and $540,000 to Connecticut"
"Hackers stole the records of approximately 825,000 New Yorkers and 62,871 Connecticut residents from BCHP’s network, including Social Security numbers and medical information."
"BCHP failed to reasonably manage its vendor-based security program and adopt standard security protections, which left it vulnerable to hackers."
"the companies must adopt a series of measures to strengthen their cybersecurity practices"
$625K
Connecticut reached a $625,000 settlement with Frontier Communications Parent Inc. over an April 2024 breach in which compromised employee and vendor credentials were used to access internal systems and exfiltrate unencrypted personal information of 58,841 Connecticut residents. The settlement requires Frontier to strengthen its security program, implement specific safeguards and training, and obtain an independent third-party assessment.
Connecticut joined a coalition of state attorneys general filing a notice in Character Technologies, Inc.’s bankruptcy proceedings, raising concerns about the company’s safety and privacy practices and the sensitive information it holds. The states seek protections for children and consumers if the company’s business or assets are sold or transferred; the filing does not impose a fine or other remedy.
Attorney General William Tong and Consumer Counsel Claire Coleman petitioned PURA to review how Connecticut public utilities use artificial intelligence, citing potential data privacy and cybersecurity risks, algorithmic errors, and misleading outputs. The petition asks PURA to examine utility AI systems, safeguards, vendors, and data security practices; it does not report a finding of violation or an imposed penalty.
$2.0M
Connecticut Attorney General William Tong announced a settlement with RZ Smoke, Inc. over allegations that it distributed and sold high-potency cannabis products without a state license. The stipulated judgment is $2 million, with $375,000 payable to the State and $1.6 million suspended to ensure compliance; the company is barred from specified cannabis activities in Connecticut unless licensed.
$13.7M
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$1.1M
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