Tuesday, October 21, 2014

Ecrypt Technologies, Inc. (ECRY) Makes Key Appointment to Accelerate Operations in Healthcare Information Security

Ecrypt Technologies is far more than just the developer of cutting-edge, military-grade email encryption system Ecrypt One, which allows for robust handling and auditing of email (including attachments) in a fully secure environment, while simultaneously eliminating the number one security threat to networks, human vulnerabilities that can compromise integrity, via always-on encryption. The company is a focal point for a variety of key information security industry and related partnerships, as well as being a provider of full-spectrum security consulting to enterprise, government, and military clients.

This broader operational footprint is reinforced by the company’s continued efforts to load its board with directors who have top U.S. military and homeland security connections, like former two decade Congressman from Pennsylvania, Curt Weldon, who was vice chairman of both the Armed Services and the Homeland Security Committees. Also on the board is former U.S. Navy rear admiral and under secretary at DHS for science & technology, Jay M. Cohen, now a principal in the extremely well-connected Chertoff Group, co-founded by Michael Chertoff, the former Homeland Security Secretary.

Stacking the deck with such high-powered and connected people is just one element of a much larger strategy to become a dominant force in the sprawling world of information security by ECRY, but it is an essential element and one that is well exemplified by the recent appointment of 25-year healthcare IT strategy and implementation expert, Urvashi Mehra. This move shows Ecrypt’s growing focus on one of their primary target markets, healthcare information security, where HIPAA (Health Insurance Portability and Accountability Act) Title II compliance has become a cottage industry unto itself.

Title II of HIPAA is all about simplified administration when it comes to healthcare data and is a driving force behind emerging national standards for dealing with patient’s electronic healthcare data, designed from inception to help prevent fraud and abuse, while also securing private patient information. This is a ripe market for ECRY, with data points like the L.A. County public health and health services department security breach early this year in February, with over 168k patients receiving HIPAA breach notification letters as a result of a sizeable theft of unencrypted computers, being a lead example.

Social Security numbers and protected health information, as well as date of birth, billing and demographic data on patients, were confirmed to be on the stolen, unencrypted hardware by L.A. County officials, leading to costly, but necessary, credit monitoring services extended to patients with compromised data. With theft being the primary source of HIPAA privacy and security breaches, accounting for nearly half (46% or more) of some 30M plus individuals having their healthcare data compromised as of earlier this year, leading to over $18M in settlements paid out by HIPAA-covered entities and business associates, the need for robust encryption in the sector is now readily apparent.

The Mehra appointment to VP of ECRY’s Global Healthcare Solutions arm is a well-timed, high profile move to help capture additional market share in the sector. Tapping such an expert strategist, with extensive Fortune 50, healthcare, IT, security, and management consulting experience, will go a long ways towards achieving the company’s ambitious growth targets in healthcare IT security. Clearly, there is abundant need at the state and federal level for comprehensive information security solutions when it comes to HIPAA, but the impact to associated private enterprise is often the most costly when a data breach occurs.

Ecrypt’s encryption solutions are an ideal way for these public/private entities to communicate freely and openly without incurring the substantial liability associated with data security breaches, helping to offset reputation damage and other ponderous outcomes proactively. Of course, the same encryption solutions that apply to the much more difficult terrain of HIPAA compliance, also serve quite well in the broader commercial landscape. A commercial landscape where notable recent data breaches range from retailers Target (40M credit and debit cards) and Home Depot (56 million debit and credit cards across U.S. and Canada), to the biggest bank in the country, JP Morgan Chase (76M households or two-thirds of the nation potentially impacted).

For more information on Ecrypt Technologies, visit www.ecryptinc.com

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