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State Regulators Launch Investigations Into Health Net Security Breach

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Aired 3/15/11

Two state agencies have launched investigations into Health Net, after the insurer announced it suffered a large security breach. The personal information of more than 845,000 Californians could be at risk.

— Two state agencies have launched investigations into Health Net, after the insurer announced it suffered a large security breach. The personal information of more than 845,000 Californians could be at risk.

Health Net said it cannot account for nine of its server drives. The drives contained personal information that may include names, Social Security numbers, and medical history.

Beth Givens directs the San Diego based non-profit Privacy Rights Clearinghouse. She couldn't believe the company didn't encrypt the data.

"To me that indicates an egregious lapse in security," Givens said. "I mean, to the point of them just not going through even the basic steps."

Health Net said it will offer all affected members free credit monitoring and identity-theft insurance.

Givens said that wouldn't prevent people from having their identities stolen. It would simply mean that they would find out about it sooner.

Health Net wouldn't say how many people in San Diego County are affected by the security breach.

The insurer could face fines from California regulators, depending on the outcome of their investigations.

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