The recent compromise of PBI Research and The Berwyn Group’s MOVEit installation has had serious consequences, with data belonging to multiple pension systems and insurance companies being stolen, impacting millions of users. The breach occurred in May, exploiting a zero-day vulnerability in the popular managed file transfer solution. The compromised database contained sensitive information from various organizations, including CalPERS, CalSTRS, Genworth Financial, and Wilton Reassurance.
Upon discovering the breach, PBI promptly notified its clients and implemented measures to mitigate potential harm. Affected organizations have started to inform their users about the breach and its implications. One of the major pension systems affected by this cyber attack is CalPERS, the California Public Employees’ Retirement System, which happens to be the largest pension system in the United States. CalPERS reported that the personal information of approximately 769,000 members has been compromised. To address this issue, CalPERS has decided to send notification letters to those affected, informing them about the breach and offering free access to credit monitoring services for a period of two years.
The purpose of PBI’s services to CalPERS is to identify member deaths, ensuring accurate payment to retirees and beneficiaries, while also preventing any instances of overpayments or other errors. This incident has raised concerns about the security of the data handled by third-party vendors.
Another pension system affected by the breach is CalSTRS, the California State Teachers’ Retirement System. At present, CalSTRS is still investigating whether any of its members have been impacted by the breach. However, the system has confirmed that the threat actors did not gain access to CalSTRS’ network, providing some reassurance to its clients.
Wilton Reassurance, an insurance provider, was alerted about the breach in MOVEit Transfer on June 7 by PBI. According to the data breach notification submitted by Wilton Reassurance to the Office of the Maine Attorney General, approximately 1,482,490 of its customers were affected by the breach. The compromised information included their names and social security numbers, raising concerns about identity theft and potential financial fraud.
The incident also impacted policyholders and agents of Genworth, a life insurance company. Genworth utilizes PBI Research Services as a third-party vendor to fulfill regulatory obligations related to scanning social security data, especially in relation to death benefits under life insurance policies or annuity contracts. Additionally, Genworth collaborates with PBI to identify deaths across its various lines of insurance and insurance agents to whom they pay commissions. As a result of this breach, personal information of approximately 2.5-2.7 million individuals, including life insurance, individual long-term care insurance, and annuity customers, has been accessed by unauthorized parties. The exposed information includes social security numbers, names, dates of birth, zip codes, state of residence, policy numbers, and agent IDs, among other details.
In response to this breach, affected organizations are working diligently to understand the scope of the compromise and the potential impact on their customers. They are also taking steps to enhance their cybersecurity measures and strengthen their systems to prevent further breaches. As the frequency and sophistication of cyber attacks continue to increase, it is crucial for companies and organizations to prioritize cybersecurity to protect their sensitive data and maintain the trust of their customers.