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Express Scripts sets $1m reward in data theft

   Bloomberg News / November 12, 2008
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   NEW YORK - Express Scripts Inc. posted a $1 million reward for help in
   catching whoever is trying to extort money from the company by threatening
   to expose millions of patient records.

   The  company, the third-largest manager of US drug benefits, also said
   someone had written to "a small number" of clients and threatened to release
   members' personal information. The letters were "similar in form" to one the
   company received last month saying millions of patient records had been
   compromised, Express Scripts said yesterday.

   "We hope that establishing a reward will bring forward useful information,"
   said chief executive George Paz in a statement. "We will do what we can to
   help find those responsible as quickly as possible."

   The initial extortion letter listed Social Security numbers, birth dates,
   and  prescriptions  for some of the 75 patients it named, claiming the
   information had been taken from company computers, Express Scripts said Nov.
   6. The new letters "are believed to be connected" to the original threat,
   the company said.

   Express Scripts also said it had hired Kroll Inc., a risk consultant and
   security  firm,  to  offer  "identity restoration" services, including
   counseling and, if necessary, investigators. The company hasn't decided
   whether it will offer restitution for monetary losses related to the data
   theft, said Steve Littlejohn, a company spokesman. Kroll's aid will be free
   for  Express  Scripts  members who show they have been affected by the
   extortion, he said.

   So far, there's no evidence any of the stolen information has been misused,
   the benefits manager said.

   Express Scripts handles about 500 million prescriptions annually for private
   employers, unions, and governments, managing benefits for "tens of millions"
   of people, Littlejohn said.

   The company said the FBI is investigating and asked anyone with information
   about the theft to call the bureau's tip line at 1-800-CALL-FBI.
   © Copyright 2008 Globe Newspaper Company.
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