Healthcare Insurer Forced to Pay $2.2M for HIPAA Violations

Gavel comes down hard on HIPAA violations for Life Insurance company non-complianceBlog Post: January 23, 2017

A settlement of 2.2 million dollars has been made between a Life Insurance company of Puerto Rico, and the U.S. Department of Health and Human Services, Office for Civil Rights (OCR) after the company was found in noncompliance with HIPAA rules and regulations.  The settlement underscores just how important it is for companies to use hardware encrypted data storage drives to secure sensitive information.

According to a government press release by the U.S. Department of Health & Human Services on January 18, 2017, the release states “On September 29, 2011, [the life insurance company] filed a breach report with OCR indicating that a USB data storage device (described as a “pen drive”) containing ePHI was stolen from its IT department, where the device was left without safeguards overnight.   According to the report, the USB data storage device included complete names, dates of birth and Social Security numbers.   The report noted that the breach affected 2,209 individuals.”

Another article by Health Data Management indicates that the company had prior violations of HIPAA Rules, but did not take the necessary steps to comply with regulations to implement encryption measures into their laptops and removable storage media until much later.

This incident emphasizes just how important it is for organizations to use secure, AES hardware encrypted devices and remote management to secure sensitive information. Kanguru provides high-end products that help organizations protect and safeguard sensitive data to prevent these types of costly proceedings.  Kanguru Defender AES 256-Bit hardware encrypted, secure drives can help organizations and businesses comply with regulations, protect data assets and prevent violations. Whether it is encrypted flash drives, hard drives, or solid state drives, Kanguru has many secure data storage options to fit any budget and need. 

With the option of Kanguru Remote Management, organizations can even manage their data storage drives anywhere in the world and monitor their whereabouts. In addition to hardware encryption, if a drive is ever lost or stolen, the drive can be immediately wiped or disabled remotely to circumvent any attempt of someone tampering with the drive to hack the information.  Kanguru remote management is a cloud-based management tool with a host of management options for removable storage media.

 To learn more, feel free to contact us at 1-888-KANGURU  (1-888-526-4878) or to discuss customized options to fit your organization and budget.


Kanguru is a global leader in providing secure portable storage solutions, providing enterprises, organizations and consumers with the best in easy-to-use, secure IT products and data storage.  For more information on Kanguru, please visit

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