Seven Texas State Employees Fired Amid Largest Data Breach in Health and Human Services History
Seven employees of the Texas Health and Human Services Commission (HHSC) have been terminated for improperly accessing, and in some cases stealing, funds from public assistance accounts. The breaches impacted thousands of Texans who rely on Medicaid, food stamps, and other public assistance programs, marking the largest internal security breach in the agency’s history.
The Breach and Its Scope
The most recent and significant incident, reported publicly by the Texas Attorney General’s Office on January 6, revealed unauthorized access to the accounts of 61,104 individuals. These accounts belonged to Texans who applied for or received benefits from programs such as Medicaid, the Children’s Health Insurance Program (CHIP), Temporary Assistance for Needy Families (TANF), and the Supplemental Nutrition Assistance Program (SNAP) between June 2021 and December 2024.
The breach was discovered in November when a private contractor flagged suspicious activity. Four employees were subsequently fired in December after it was confirmed that they accessed account information without valid business reasons.
The HHSC has begun notifying affected individuals and offering two years of free credit monitoring. Those impacted can call 866-362-1773 with reference number B138648 for assistance.
Fraud and Misconduct
Three additional employees were terminated in separate incidents throughout 2023:
- January 2023: An employee altered PINs on 211 food stamp accounts and sold the cards, resulting in $81,638 in stolen funds.
- March 2023: Another employee emailed a spreadsheet containing sensitive information on 3,392 public assistance accounts to a personal email address.
- Summer 2023: An employee manipulated PINs on 391 food stamp accounts, using the benefits for unauthorized purchases, leading to $190,518 in stolen funds.
All three cases have been referred to local district attorneys for prosecution.
Systemic Weaknesses and Security Measures
The breach has highlighted vulnerabilities within the HHSC’s TIERS system, which houses sensitive data on millions of Texans. Nearly 8,400 of the agency’s 9,500 employees in the eligibility services division have access to this data, making it a large target for internal and external exploitation.
In response, the agency has pledged to strengthen security measures, including enhanced monitoring and alerts to detect suspicious activity. The HHSC is also seeking $300 million from the Texas Legislature to modernize its eligibility and enrollment systems.
Impact on Texans and Public Trust
The breach underscores the risks posed by internal actors in safeguarding public benefits for low-income and disabled Texans. Governor Greg Abbott has emphasized the need for accountability and transparency, with HHSC officials warning that more terminations may follow as investigations continue.
Affected SNAP recipients are urged to monitor transactions on their Lone Star cards for potential fraud and report suspicious activity to law enforcement or their local agency office.
A Call for Reform
The Texas Health and Human Services Commission manages $93.4 billion in programs annually, with food stamps alone providing over $7 billion in assistance in 2023. As the agency confronts these internal breaches, it must balance improving oversight and security while continuing to deliver critical support to millions of Texans.
This breach serves as a wake-up call for broader reforms in monitoring, transparency, and internal safeguards to protect the integrity of public assistance programs.
Reference News :- State employees suspected of stealing from low-income Texans’ public assistance accounts
