Conduent Data Breach Hits Thousands of Blue Cross Blue Shield Members in Montana

The Montana Commissioner of Securities and Insurance reported that a data breach at Conduent exposed personal information of about 462,000 Blue Cross Blue Shield of Montana members.

 

Blue Cross and Blue Shield of Montana (BCBSMT), the largest health insurer in the state, serves more than 300,000 members with a wide range of health insurance plans. As an independent licensee of the Blue Cross Blue Shield Association and a division of Health Care Service Corporation, BCBSMT provides comprehensive and affordable coverage options for individuals and organisations. Conduent supports BCBSMT as a third-party service provider, handling mailroom operations, payment processing, and other back-office functions.

 

On January 13, Conduent said it suffered an operational outage that affected its clients’ ability to take payments via electronic transfer or EBT cards. In a statement shared with the media, a company spokesperson said that the operational outage was caused by a significant “cyber security incident.”

 

According to the media, the Office of Montana State Auditor and Insurance Commissioner, James Brown, confirmed that a data security incident has potentially exposed the personal information of up to 462,000 customers, describing it as a “major data breach.”

 

“This breach is not just a technical lapse. This is a deeply disturbing incident with far-reaching and jaw-dropping consequences for our citizens,” Brown said. 

 

“Montanans have every right to expect their personal data, especially sensitive health information, to be protected by the entities they trust. The severity of this breach underscores the urgent need for robust oversight and our agency to take swift and immediate action to protect Montana consumers,” he added.

 

Acknowledging reports of the data breach, a spokesperson for Blue Cross and Blue Shield of Montana stated that the incident originated from a third-party vendor used by the insurance company.

 

“BCBSMT was notified by Conduent that some BCBSMT member data was impacted by a January 2025 cyber incident. Blue Cross and Blue Shield of Montana systems were not impacted by this incident. However, because of our relationship with Conduent, BCBSMT members were impacted by Conduent’s incident. Conduent will be mailing letters to impacted members.

 

“Conduent is a BCBSMT third-party service provider that offers mailroom, payment and other back-office support services. If a BCBSMT member’s data has been impacted by this incident, it is due to BCBSMT’s relationship with Conduent,” the spokesperson said.