A few delays here, a missed confirmation there...

BlackCat's $22 million attack started quietly enough. But before long, it spiraled into one of the worst digital breakdowns in health care history.

The attack breached a business called Change Healthcare in February 2024. Change processes insurance claims for more than half of all Americans.

That means it has access to everything from patient names and contact info to Social Security numbers and medical details.

Hackers working with the BlackCat ransomware group infiltrated Change's network using stolen credentials. They lurked inside for days... then locked employees out of the network and demanded a ransom.

Until it was paid, nobody would be able to access the system.

Hospitals couldn't verify insurance. Doctors were forced to scribble notes by hand. Pharmacists couldn't fill prescriptions. Some providers started charging patients up front or delaying care.

And at the Pontchartrain Cancer Center in Southeast Louisiana, the situation reached a breaking point...

Pontchartrain treats around 6,000 patients per year...

But in the weeks after the breach, it was only collecting about 40% of its normal payments.

CEO Kathy Oubre was forced to apply for emergency Medicare relief. She warned that if the crisis dragged on much longer, the center might have to ask its owners to personally guarantee a loan – or begin turning patients away altogether​.

This wasn't a fringe provider running on outdated tech. Change Healthcare is owned by UnitedHealth. It touches one in every three U.S. patient records and handles 15 billion health care transactions per year.

The problem came from a gaping vulnerability in American health care... too much infrastructure depends on too few digital gatekeepers.

Change was (and still is) one of the most vital nodes in the system. But it still couldn't contain the damage. While the company ended up paying a $22 million ransom in bitcoin, the stolen data is still out there.

Folks, cybersecurity isn't about hackers in hoodies or abstract lines of malicious code...

It's about real people – patients, providers, and families – and what happens when the systems they rely on suddenly stop working.

In a world where a single compromised login can grind a $4.5 trillion industry to a halt, preparation is no longer optional. Companies must find the cracks in their defenses, test their response plans, and strengthen their digital walls.

That's getting trickier by the day... because of AI.

This tech isn't just an idea with big potential anymore. It has provided countless benefits for society. But just as people have gotten the best out of AI, they're also finding ways to get the worst out of it.

Cybercriminals are using AI to automate phishing scams, write sophisticated malware, and orchestrate attacks that adapt in real time. The same tools built to improve businesses are being used to hurt them.

For a long time, the cybersecurity world has been locked in a fast-moving arms race. That race has now been turbocharged.

And the companies that help keep data safe will come out on top.

Regards,

Joel Litman
April 29, 2025

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