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Ransomware Attack Hits Major Service Provider for Accounting and Healthcare Organizations

According to recent reports, cloud hosting and IT services provider Netgain, which bills itself as “the industry standard for secure and scalable IT-as-a-Service (ITaaS) for accounting and healthcare,” has been forced to take some of its data centers offline after suffering a recent (and potentially ongoing) ransomware attack.

Apparently, Netgain first suffered or discovered the attack on November 24, 2020, and began reporting potential “system outages or slowdowns” as of December 4. On December 5, Netgain further reported that it had taken “a number of [its] data centers offline.”

Subsequently, on December 8, 2020, Netgain customer Crystal Practice Management e-mailed its optometry and vision-therapy clients, indicating that many of Netgain’s servers were still down and that the ransomware attack affected Netgain’s domain controllers, which organize or respond to security authentication requests for thousands of Netgain servers across several locations.

As a result of this news, we encourage you to confer with your information-technology personnel to determine if your organization might have been affected by this incident. If your organization was or might have been affected by this incident, or if you have any questions pertaining to data privacy or security, please contact a member of our Data Protection and Cybersecurity Team.

Tags: Data Privacy and Cybersecurity
  • John C. Gray, CIPP/US
    Of Counsel

    John Gray is Of Counsel in Lewis Roca’s Litigation Practice Group and leads the firm’s Data Privacy and Cybersecurity Group.  He is also a member of the firm’s AI Task Force.

    As a litigator, John has more than a decade of experience in Arizona, California, and other forums across the ...

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