A dermatology practice recently faced a $150,000 fine due to a data breach caused by a stolen, unencrypted USB drive. This incident highlights the critical importance of robust data security measures.  The practice settled with the Department of Health and Human Services (HHS) for privacy and security violations, agreeing to a corrective action plan to address deficiencies in its HIPAA compliance program. This is the first settlement with a covered entity for not having policies to address the breach notification provisions of the HITECH Act. The breach occurred when an unencrypted thumb drive with protected health information (PHI) of 2,200 individuals was stolen from a staff member’s vehicle and was