Bankruptcy Petition Filed After Data Breach

Collection agency cites data breach impacting health care clients.

6/18/2019 8:00 AM

News
Bankruptcy Petition Filed After Data Breach

Retrieval-Masters Credit Bureau Inc., operating its patient receivables under the name American Medical Collection Agency (AMCA), filed for Chapter 11 protection after a data breach leading to possible unauthorized access to consumers’ personal, financial and medical information.

According to a report in Bloomberg, the company plans to liquidate its assets after a breach of its online payment portal affected consumers’ data with its clients Quest Diagnostics and Laboratory Corporation of America.

The bankruptcy filing in the Southern District of New York shows top clients of AMCA stopped doing business with the company after the data breach, according to the article.

“The data breach created a ‘cascade of events’ resulting in the bankruptcy filing, Chief Executive Officer Russell H. Fuchs said in a court declaration,” Bloomberg reports. “It incurred ‘enormous expenses that were beyond the ability of the debtor to bear,’” he said.

A spokesperson for AMCA provided the following statement to ACA International:

“We are investigating a data incident involving an unauthorized user accessing the American Medical Collection Agency system. Upon receiving information from a security compliance firm that works with credit card companies of a possible security compromise, we conducted an internal review, and then took down our web payments page. We hired a third-party external forensics firm to investigate any potential security breach in our systems, migrated our web payments portal services to a third-party vendor, and retained additional experts to advise on, and implement, steps to increase our systems’ security. We have also advised law enforcement of this incident. AMCA is providing 24 months of credit monitoring to anyone who had a social security number or credit card account compromised, even if the relevant state doesn't require it. We remain committed to our system’s security, data privacy, and the protection of personal information.”

Related Content from ACA International:

Security Response in Place after Data Breach at American Medical Collection Agency


Follow ACA International on Twitter @ACAIntl and @acacollector, Facebook and request to join our LinkedIn group for news and event updates. ACA International members are welcome to submit news items for possible publication to comm@acainternational.org. Visit our publications page for news submission guidelines and subscriptions to ACA Daily, Collector magazine and Pulse.

Advertising is available for companies wishing to promote their products or services. Be sure to visit the ACA Events Calendar on the Education and Training page to view our listing of upcoming CORE Curriculum and Hot Topic seminars featuring critical educational opportunities for your company.


Subscribe to ACA Daily NEWSROOM

Bankruptcy Petition Filed After Data Breach

Retrieval-Masters Credit Bureau Inc., operating its patient receivables under the name American Medical Collection Agency (AMCA), filed for Chapter 11 protection after a data breach leading to possible unauthorized access to consumers’ personal, financial and medical information.

According to a report in Bloomberg, the company plans to liquidate its assets after a breach of its online payment portal affected consumers’ data with its clients Quest Diagnostics and Laboratory Corporation of America.

The bankruptcy filing in the Southern District of New York shows top clients of AMCA stopped doing business with the company after the data breach, according to the article.

“The data breach created a ‘cascade of events’ resulting in the bankruptcy filing, Chief Executive Officer Russell H. Fuchs said in a court declaration,” Bloomberg reports. “It incurred ‘enormous expenses that were beyond the ability of the debtor to bear,’” he said.

A spokesperson for AMCA provided the following statement to ACA International:

“We are investigating a data incident involving an unauthorized user accessing the American Medical Collection Agency system. Upon receiving information from a security compliance firm that works with credit card companies of a possible security compromise, we conducted an internal review, and then took down our web payments page. We hired a third-party external forensics firm to investigate any potential security breach in our systems, migrated our web payments portal services to a third-party vendor, and retained additional experts to advise on, and implement, steps to increase our systems’ security. We have also advised law enforcement of this incident. AMCA is providing 24 months of credit monitoring to anyone who had a social security number or credit card account compromised, even if the relevant state doesn't require it. We remain committed to our system’s security, data privacy, and the protection of personal information.”

Related Content from ACA International:

Security Response in Place after Data Breach at American Medical Collection Agency


Follow ACA International on Twitter @ACAIntl and @acacollector, Facebook and request to join our LinkedIn group for news and event updates. ACA International members are welcome to submit news items for possible publication to comm@acainternational.org. Visit our publications page for news submission guidelines and subscriptions to ACA Daily, Collector magazine and Pulse.

Advertising is available for companies wishing to promote their products or services. Be sure to visit the ACA Events Calendar on the Education and Training page to view our listing of upcoming CORE Curriculum and Hot Topic seminars featuring critical educational opportunities for your company.


Subscribe to ACA Daily NEWSROOM

Loading...

Loading...

Scroll to Top