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November 12, 2008 1:53 PM PST

Express Scripts clients threatened with extortion

by Robert Vamosi

One week after a breached corporate health care company refused to pay extortionists, the criminals now are seeking money from the corporate clients whose employee data might have been exposed.

St. Louis-based Express Scripts said on Tuesday that a limited number of its clients--which include government agencies, unions, and employers--have received letters threatening to expose the personal information of its members. The company said the letters sent to its clients were similar to the original extortion threat it received in October.

The company also said it was establishing a reward totaling $1 million to anyone providing information that results in the arrest and conviction of the criminals responsible.

"We are cooperating fully with the FBI to assist them in their investigation and doing what we can to protect our members," said George Paz, CEO and chairman of Express Scripts, in a statement on the company's site.

In a separate announcement, Express Scripts announced that Knoll, a New York-based risk-consulting firm, has been contracted to offer expert assistance to members who become victims of identity fraud as a result of this incident.

As CNET's resident security expert, Robert Vamosi has been interviewed on the BBC, CNN, MSNBC, and other outlets to share his knowledge about the latest online threats and to offer advice on personal and corporate security. Listen to his podcast at securitybites.cnet.com or e-mail Robert with your questions and comments.
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Add a Comment (Log in or register)
by johnfranks1234 November 13, 2008 7:29 AM PST
In the realm of risk, unmanaged possibilities become probabilities. Data breaches & thefts are due to a lagging business culture. As CIO, I look for ways to help my business and IT teams. A book that is required reading is "I.T. WARS: Managing the Business-Technology Weave in the New Millennium." It also helps outside agencies understand your values and practices.
The author, David Scott, has an interview that is a great exposure: http://businessforum.com/DScott_02.html - The book came to us as a tip from an intern who attended a course at University of Wisconsin, where the book is an MBA text. It has helped us to understand that, while various systems of security are important, no system can overcome laxity, ignorance, or deliberate intent to harm. Necessary is a sustained culture and awareness; an efficient prism through which every activity is viewed from a security perspective prior to action.
I like to pass along things that work, in hopes that good ideas make their way to me.
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