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Lawmakers, Regulators Start Asking Questions About Collection Agency Data Breach

The news for the companies involved in a data breach at American Medical Collection Agency is only getting worse by the day.

Following announcements from Quest Diagnostics and LabCorp that the personal information of as many as 19 million individuals has been compromised, including financial information and Social Security numbers, lawmakers and regulators are now looking to get answers to their many questions.

A trio of Senators — Sen. Cory Booker [D-N.J.], Sen. Bob Menendez [D-N.J.], and Sen. Mark Warner [D-Va.] wrote letters to Quest and LabCorp seeking answers on a number of questions, such as requirements for data encryption and data security of the vendors they use and how they will better monitor the information and data security of companies they work with going forward.

Companies in the credit and collection industry can likely expect a wave of inquiries from their clients in the healthcare space, seeking affirmations of data security protocols and audits to ensure proper security measures are in place. Nobody wants to be the next company in the headlines. This is especially likely because the questions from the Senators are related to the third-party vendors they use and their supply chain management procedures.

Joining the Senators in looking for answers is the Attorney General of Michigan, who is planning to demand answers from AMCA, Quest, and the revenue cycle management company it used.

“This breach is particularly troubling for several reasons,” said Dana Nessel, according to a published report. “First, it appears this is a deliberate hack that increases the likelihood that accessed information may be used to commit fraud.”

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