The settlement BlueCross BlueShield of Tennessee paid to HHS was a penalty for failing to prevent a breach that saw the theft of 57 unencrypted hard drives containing recordings of customer service phone calls. The drives were left behind in a data closet after the company stopped using a leased facility.
http://www.darkreading.com/database-security/167901020/security/news/232700031/1-5m-fine-marks-a-new-era-in-hitech-enforcement.html
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