Case Study

Faulty software leads to data breach

Stroz Friedberg is a specialized risk management firm built to help clients solve the complex challenges prevalent in today’s digital, connected, and regulated business world

A health insurance company launched a new software program giving their corporate clients’ benefit managers access to their employees’ records. However, a bug in the software allowed some clients access to other corporate clients’ employee information, including key personally identifying information such as social security numbers and individuals’ dates of birth.

The healthcare company at first believed that all 1,000,000 of its customers may have thus been exposed to a data breach. Stroz Friedberg successfully worked with the software developers to conduct a review of the relevant software code and logs, identify the root cause of the problem, and calculate the number of customers whose data was actually breached. After completing the reviews, our specialists were able to determine that only a very small number of individuals were affected, allowing the insurance company to save millions of dollars in notifications and fines.


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