Real-World Data Breaches – What Happens When Transcription Companies Fail Security Standards

When transcription companies fail to implement robust security measures, the repercussions can be severe, leading to exposed sensitive information, legal liabilities, and loss of trust. Below are real-world cases highlighting the consequences of inadequate security in transcription services.

Case #1: Perry Johnson & Associates (PJ&A) Data Breach – 8.9 Million Patient Records Exposed

📅 Year: 2023
📍 Industry: Healthcare
⚠️ Impact: Approximately 8.9 million patient records compromised

Overview

Perry Johnson & Associates (PJ&A), a medical transcription service provider, suffered a significant data breach between March 27 and May 2, 2023. The breach exposed highly sensitive patient information, including names, Social Security numbers, medical records, and insurance details. Healthcare providers like Northwell Health and Cook County Health were among those affected.

Causes:

• Unauthorized Access: Hackers infiltrated PJ&A’s systems, compromising patient files.
• Weak Security Measures: Lapses in encryption, access control, and intrusion detection contributed to the breach.
• Delayed Notification: The breach was discovered in September 2023, months after the initial attack occurred.

Lessons Learned:

✔ SOC-2 Certification Matters: A SOC-2 certified transcription provider undergoes third-party security audits to verify strong access controls and encryption measures.
✔ HIPAA Compliance is Essential: A HIPAA-compliant transcription service must follow strict security measures to protect patient data.
✔ Early Breach Detection is Critical: Companies should use real-time monitoring to detect unauthorized access before millions of records are compromised.

A data breach can be devastating, but many of these security failures could have been avoided with the right vetting process. Learn how to properly vet a transcription company for security risks.

📖 Reference: Yahoo News – 9 Million Patients Had Data Exposed in Perry Johnson & Associates Breach

Case #2: ZircoDATA Breach – Compromise of Personal Identification Information

📅 Year: 2024
📍 Industry: Government Data & Transcription Services
⚠️ Impact: Visa applications, passport numbers, and driver’s license details leaked

Overview:

ZircoDATA, a data firm handling sensitive transcription work for the Australian Department of Home Affairs, suffered a major cyberattack in 2024. The breach compromised personal identification details of clients who used the Free Translating Service between 2017 and 2022, including visa applications, passport numbers, and driver’s licenses.

Causes:

• Ransomware Attack: The Black Basta ransomware group infiltrated ZircoDATA’s systems and extracted sensitive client data.
• Delayed Breach Notification: The government initially failed to notify affected individuals, delaying response measures.
• Weak Third-Party Security Controls: The breach originated from a third-party vendor, highlighting the risks of outsourcing transcription services to firms without strong cybersecurity measures.

Lessons Learned:

✔ Third-Party Risk Management is Critical: Businesses must vet transcription vendors for strict security policies and real-time threat detection.
✔ Rapid Breach Response is a Must: A secure transcription service should have a formalized incident response plan to notify affected individuals immediately.
✔ SOC-2 Certification Should Be Required: Transcription companies handling sensitive government or corporate data should undergo annual SOC-2 audits to verify security compliance.

Even US-based transcription providers have suffered security breaches due to weak data protection policies. Discover the dangerous security gaps in transcription companies—even in the U.S.

📖 Reference: The Australian – Visa and Passport Details Compromised in ZircoDATA Cyberattack

How to Avoid Becoming the Next Data Breach Headline

🔍 What to Look for in a Secure Transcription Provider:
✔ SOC-2 Certification – Ensures an independent audit of security controls.
✔ HIPAA & GDPR Compliance – Required for handling healthcare and European data.
✔ US-Based Transcriptionists – Avoids offshore privacy risks and ensures legal accountability.
✔ Legally Binding NDAs – Every transcriptionist should sign strict confidentiality agreements.
✔ End-to-End Encryption – Protects files in transit and at rest.
✔ Cyber Liability Insurance – Covers financial damages in case of a security incident.

Final Thoughts: Security Failures Are Preventable—If You Choose the Right Provider

These real-world breaches prove that transcription security failures happen when providers cut corners on security.

🔹 Next Steps: Review your current transcription provider’s security measures. If they can’t prove encryption, workforce vetting, and compliance standards, it’s time to switch to a provider that prioritizes security and confidentiality.

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