LA Hospital Paid 17K Ransom to Hackers of Its Computer Network

Hollywood Presbyterian Medical Center had lost access to its computer systems since 5 February after hackers installed a virus that encrypted their computer files.

Hollywood Presbyterian Medical Center paid the ransom of 40 bitcoins, which is now worth $16,664, in order to restore the computer system which was infiltrated on February 5. “The expanding number of access points to Protected Health Information (PHI) and other sensitive data via electronic medical records and the growing popularity of wearable technology makes the health care industry a vulnerable and attractive target for cybercriminals“.

In a letter posted online by hospital CEO Allen Stefanek, the executive said the payment was the quickest way to restore their systems. “In the best in interest of restoring normal operations, we did this”. According to Ars Technica, the ransomware could be part of a trend of attacks against businesses and larger institutions. While security agencies and computer experts are working on making the system secure, the hospital has resolved the issue by paying money to hackers. The hospital went offline for a week, but refused to pay the ransom.

The 434-bed hospital in the Los Feliz area of Los Angeles was founded in 1924.

“All systems now in use were cleared of the malware and thoroughly tested”, he said.

The malware then tells the victim it needs to pay a ransom before a certain date or all the data will be erased.

A November CBC News investigation discovered that cybercrimes of this nature dupe Canadians out of hundreds of millions of dollars each year. Law enforcement sources told the the Times the hospital paid the ransom before reaching out to law enforcement for assistance.

In an October 2015 talk unrelated to the Hollywood hospital hack, Assistant Special Agent Joseph Bonavolonta, who oversees the FBI’s Boston office, echoed how hard the hackers are to find. Is something wrong with your pacemaker? However, it was left with no option besides paying the ransom. Hollywood Presbyterian Medical Center’s network had been held by hackers for little more than a week. She declined to release further details.