AMCA files for bankruptcy following the recently disclosed security breach

Retrieval-Masters Creditors Bureau, the company that operates healthcare billing services provider AMCA, has filed for Chapter 11 bankruptcy due to a recent data breach.

Retrieval-Masters Creditors Bureau, the company that operates the recovery agency for patient collections American Medical Collection Agency (AMCA), has filed for Chapter 11 bankruptcy due to a recent security breach that affected millions of individuals.

The company Retrieval-Masters Creditors Bureau would pay millions of dollars for the incident response, for this reason, it has decided to terminate AMCA.

The news is disconcerting and demonstrates the potential effects of a data breach on an organization.

The incident impacted millions of users, a filing with the U.S. Securities and Exchange Commission (SEC) Quest revealed that the attackers broke into the web payment portal of the American Medical Collection Agency between August 1, 2018 and March 30, 2019.

AMCA provides services to numerous firms, including the revenue cycle management provider Optum360, medical testing firm Quest Diagnostics, and LabCorp.

The security breach has impacted roughly 12 million of Quest Diagnostics‘ patients and roughly 7.7 of LabCorp patients. After the disclosure of the incident, Labcorp announced the terminations of business activities with AMCA and Quest Diagnostics has suspended sending collection requests to AMCA.

The hackers broke into company databases containing millions of medical test lab patients’ personal and payment information.

Other 422,000 patients of BioReference Laboratories, roughly 500,000 patients of CareCentrix, and customers of Sunrise Laboratories were also impacted by the security breach.

AMCA is in the storm, several class action lawsuits have been filed against it, and the number of potentially affected people continue to grow.

According to documents submitted to the U.S. Bankruptcy Court in the Southern District of New York, many payment cards used on the AMCA web site had been used for fraudulent charges.

The investigation into the incident has cost AMCA roughly $400,000 and it has been estimated that the company will spend another $3.8 million to send millions of notices to impacted individuals.

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Pierluigi Paganini

(SecurityAffairs – AMCA, hacking)

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