Massive Security Breach at Texas Health and Human Services Affects Over 61,000 Texans
In what is being called the largest internal security breach in the history of the Texas Health and Human Services Commission (HHSC), seven state employees have been fired for unlawfully accessing—and in some cases, stealing—from public assistance accounts. This breach has impacted more than 61,000 Texans who rely on Medicaid, food stamps, and other vital public benefits.
What Happened
The breach, which was first reported by the Texas Attorney General’s Office on January 6, involved unauthorized access to personal account information for over 61,000 individuals. These accounts were tied to programs like Medicaid, the Children’s Health Insurance Program (CHIP), Temporary Assistance for Needy Families (TANF), and the Supplemental Nutrition Assistance Program (SNAP).
The breach was first identified in November 2024 when a private contractor noticed suspicious activity. Four HHSC employees were fired in December after it was revealed they had accessed private client information for reasons that didn’t align with their job responsibilities.
Past Misconduct and Stolen Funds
In addition to the December firings, three other employees were dismissed for separate breaches throughout 2023, including:
- January 2023: Altering PINs on 211 food stamp accounts, resulting in $81,638 in stolen funds.
- March 2023: Transferring a spreadsheet with sensitive personal data of 3,392 Texans to a private email account.
- Summer 2023: Manipulating PINs on 391 food stamp accounts, stealing $190,518 through fraudulent purchases.
These incidents have been referred to local district attorneys for further legal action.
How Texans Are Affected
HHSC is notifying the 61,104 individuals whose accounts were compromised, sending letters via first-class mail, and offering two years of free credit monitoring. Those impacted can call 866-362-1773 (reference number B138648) for more information.
SNAP recipients are also being encouraged to keep an eye on their Lone Star card transactions for any signs of fraud. Anyone who suspects fraudulent activity is advised to report it by calling 2-1-1 and selecting option 3 or by visiting a local HHSC office for assistance.
A Vulnerable System Exposed
This breach highlights a significant issue within HHSC’s TIERS system, which has been in use for decades. The system contains sensitive data for millions of Texans and is accessible to nearly 8,400 employees within the eligibility division, which increases the chances of internal misuse.
In response, HHSC is seeking $300 million from the Texas Legislature to modernize its eligibility and enrollment systems. Officials have also pledged to enhance internal security measures, including more robust monitoring to detect unusual activities.
What’s Next
The breach has raised serious concerns about the safety of the agency’s systems and the need for tighter controls over employee access to sensitive data. With over $7 billion in food stamp benefits being distributed annually and more than 3.6 million Texans relying on these programs, safeguarding the integrity of public assistance programs is a priority.
As investigations continue, HHSC has made it clear that additional terminations may follow. “Employees involved in similar inappropriate conduct will be fired and referred to the proper authorities,” the agency said.
This breach serves as a stark reminder of the importance of maintaining secure systems and the risks associated with inadequate internal controls.
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Reference News :- State employees suspected of stealing from low-income Texans’ public assistance accounts
