Home › Intelligence › Brief
BREACH BRIEF 🟠 High Breach

Credential Theft and Missing MFA Lead to 13 Million Patient Records Exposed at Perry Johnson Companies

Hackers used an employee’s credentials to breach Perry Johnson Companies, stealing PHI for over 13 million patients. The breach persisted for two months because the firm lacked MFA and proper alerting. This underscores the control‑assurance need for strong access controls and continuous monitoring.

Verisq™ Intelligence · 📅 November 07, 2026 · 📰 therecord.media
Get the weekly threat digestBreaches, exploited vulnerabilities and advisories that matter to your vendors, every Friday. Free.
🟠
Severity
High
BR
Type
Breach
🎯
Confidence
High
🏢
Affected
1 sector(s)
✅
Actions
4 recommended
📰
Source
therecord.media

Hack Exposes 13 Million Patient Records at Perry Johnson Companies After Credential Theft and Lack of MFA

What Happened – In March 2023, hackers gained access to the systems of Perry Johnson Companies, a Nevada‑based provider of medical transcription, coding and imaging services. The intrusion began with the use of an employee’s valid credentials; the firm had no multi‑factor authentication (MFA) to verify the user. Once inside, the attackers harvested additional passwords and exfiltrated unencrypted files containing protected health information (PHI) for more than 13 million individuals. The company’s security software recorded the malicious activity but was mis‑configured and failed to generate alerts for the security team. The breach continued for roughly two months before the hackers themselves notified the organization. State attorneys general in Connecticut, New Jersey, New York and Michigan sued, resulting in a $300 k settlement and a court‑ordered remediation plan that includes MFA, encryption, password‑management, yearly risk assessments and a formal incident‑response program.

Why It Matters for Trust & Control Assurance – The episode highlights a core access‑control control objective: enforcing strong authentication and continuous monitoring to protect sensitive health data.

Who Is Affected – Healthcare providers, medical transcription and coding firms, imaging services, and any organization handling large volumes of PHI.

Recommended Actions –

  • Deploy MFA for all privileged and remote accounts.
  • Harden logging and alerting to ensure anomalous credential use is flagged in real time.
  • Conduct a comprehensive risk assessment and update incident‑response procedures to include credential‑theft scenarios.
  • Encrypt PHI at rest and enforce strict password‑management policies.

Technical Notes –

  • Attack vector: Stolen employee credentials (no MFA).
  • Data types exposed: Names, DOB, SSNs, home addresses, hospital account numbers, diagnoses, insurance details, medication lists, lab results.
  • Detection gap: Security tooling recorded activity but lacked proper configuration to trigger alerts.

Source: The Record

📰 Original Source
https://therecord.media/medical-services-company-settles-with-4-state-ags ↗

This Verisq Intelligence Brief is an independent analysis. Read the original reporting at the link above.

Third-party risk

Does this breach reach you?

Verisq continuously monitors your vendors for breach and ransomware activity, so the question stops being whether it happened and becomes whether it reaches you.

See a live Trust Center →