FTC Scolds Medical Transcript Co. For Leaking Health Info

Law360, New York (February 3, 2014, 1:35 PM EST) -- The Federal Trade Commission on Friday settled with a leading audio-file transcription service accused of failing to catch inadequate data-security practices at a contractor that leaked thousands of transcripts containing patient health information on the Internet.

California-based GMR Transcription Services Inc. did not prevent its India-based medical audio transcription specialist from using a file-transfer protocol application that reduced files to simple text and left them open to unauthorized access as they were stored and transmitted via its server, according to an FTC administrative complaint.

The transcripts...
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