CIPP-C Exam: Absolutely Free Online Practice

(ePHI) of these individuals on behalf of HealthCo. CloudHealth stores the data in state B. As part of

HealthCo’s business associate agreement (BAA) with CloudHealth, HealthCo requires CloudHealth to

implement security

measures, including industry standard encryption practices, to adequately protect the data. However, HealthCo

did not perform due diligence on CloudHealth before entering the contract, and has not conducted audits of

CloudHealth’s security measures.

A CloudHealth employee has recently become the victim of a phishing attack. When the employee

unintentionally clicked on a link from a suspicious email, the PHI of more than 10,000 HealthCo patients was

compromised. It has since been published online. The HealthCo cybersecurity team quickly identifies the

perpetrator as a known hacker who has launched similar attacks on other hospitals – ones that exposed the PHI

of public figures including celebrities and politicians.

During the course of its investigation, HealthCo discovers that CloudHealth has not encrypted the PHI in

accordance with the terms of its contract. In addition, CloudHealth has not provided privacy or security

training to its employees. Law enforcement has requested that HealthCo provide its investigative report of the

breach and a copy of the PHI of the individuals affected.

A patient affected by the breach then sues HealthCo, claiming that the company did not adequately protect the

individual’s ePHI, and that he has suffered substantial harm as a result of the exposed data. The patient’s

attorney has submitted a discovery request for the ePHI exposed in the breach.

What is the most significant reason that the U.S. Department of Health and Human Services (HHS) might

impose a penalty on HealthCo?

Free IAPP CIPP-C Exam Questions