FOR IMMEDIATE RELEASE
Whistleblower Exposes Operational Negligence Behind QBE’s 2024 Data Breach — Not a Cyberattack, But a Governance Failure
New York, NY — A new whistleblower disclosure challenges the narrative surrounding the 2024 healthcare data breach involving QBE and its contractor, Mphasis. Contrary to public claims of a sophisticated cyberattack, the breach appears to have been caused by internal policy failures, poor endpoint governance, and a breakdown in basic security hygiene.
The whistleblower—currently a defendant in Mphasis Corporation v. Defendant, Case No. 25-cv-3175 (SDNY)—has published protected testimony and technical documentation at:
“This wasn’t a hack. It was an avoidable breach enabled by negligence,” said Defendant, the whistleblower and former contractor. “No device lifecycle tracking. No endpoint separation. I was directed to operate both QBE and Mphasis systems from a single, QBE-issued laptop—without ever being provisioned a secure Mphasis endpoint.”
While Mphasis markets its Cyber Defense Services as capable of rapid digital forensics, the breach was not the result of external compromise. Instead, the whistleblower alleges that warnings about insecure infrastructure went unheeded, critical policies were bypassed, and the compromised laptop remained unreturned and unaudited for over five months after his termination.
“You don’t lose patient data because of hackers—you lose it because internal controls collapse and no one intervenes,” Defendant added. “Mphasis’s own post-incident report admitted gaps in security controls. But those ‘gaps’ were flagged long before the breach. They were ignored.”
The disclosures cite protections under the Defend Trade Secrets Act (18 U.S.C. § 1833(b)), Sarbanes-Oxley, Dodd-Frank, N.Y. Labor Law § 740, and the First Amendment. All evidence is submitted under penalty of perjury pursuant to 28 U.S.C. § 1746.
These sites serve as public interest archives, intended for use by regulators, patients, and investigative journalists. They include detailed timelines, internal communications, and evidence of retaliation that followed the whistleblower’s protected disclosures.
From: Arul A <Arul.A@mphasis.com>
Sent: Thursday, October 31, 2024 2:53 PM
Subject: RE: [External] Incident : INC0998747 - QBE & Mphasis emails
Hi Defendant,
Just want to keep you informed, since you already got client laptop, Mphasis IT team will not provide you Mphasis laptop.
Regards,
Arul. A
Global Strategic Resourcing (GSR) | Human Resources | MphasiS Corporate Support
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Nov 1, 2024 at 1:19:28 PM: Defendant states; “QBE Policy Reference:
Group Acceptable Use Policy.pdf, page 10 4.8 Prohibited Behavior Section (r): Use unauthorized third-party email services for exchanging business-related messages and information. Only QBE-approved systems may be used for transmitting sensitive information relevant to our business.
Additional Note:
Accessing third-party systems, including portals or email clients, through web connectors can pose security risks. Based on experience with companies like Walmart, BofA, and others, security incidents are often internal rather than external.”
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Nov 1, 2024 at 1:19:28 PM: Defendant states; “Thank you for your time, Yaberry!
Forwarding the email thread as requested, though it’s not an ideal one. I strongly recommend that Mphasis employees avoid accessing the Mphasis web portal using client laptops on their network.”
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On February 28, 2025, Mphasis management, through Ruturaj Waghmode, transmitted confidential QBE materials to Defendant’s Mphasis email, which he accessed via personal MacBook due to Mphasis’s failure to provide standard corporate hardware. Lacking domainjoined equipment necessary for compliance, Defendant was compelled to forward the QBE.pptx file from his Mphasis email (defendant@mphasis.com) to his personal email (defendant@gmail.com) to complete required work.
Under the doctrine of equitable estoppel (Kosakow v. New Rochelle Radiology, 274 F.3d 706, 725 (2d Cir. 2001)) and unclean hands (Precision Instrument Mfg. Co. v. Auto. Maint. Mach. Co., 324 U.S. 806, 814 (1945)), Plaintiff cannot assert violations that it induced through its own failure to provide basic resources. Plaintiff’s failure to furnish tools required for compliance negates any assertion of willful misconduct (Heckler v. Community Health Services, 467 U.S. 51, 59 (1984)).
From: Ruturaj Waghmode <ruturaj.waghmode@mphasis.com>
Sent: Friday, February 28, 2025 10:23 AM
To: Defendant <defendant@mphasis.com>
Subject: QBE draft deck
Regards, Ruturaj +1.650.507.9809
QBE.pptx
QBE’s breach is the outcome of a pattern—not a one-off mistake. Internal controls are weak by design. Leased laptops were never tracked. Policies were enforced inconsistently. And whistleblowers—like me—were silenced instead of supported.
Background:
Despite being assigned mission-critical deliverables across regulated clients including QBE, Charles Schwab, and Lucid Motors, Defendant was never issued an Mphasis-managed device. Instead, Mphasis management—including individuals in its HR, Risk, and CRO offices—explicitly directed Defendant to complete work using his personal laptop and a QBE-issued endpoint. This violated both companies’ own security policies and federal data protection standards.
Mphasis manufactured a “potential DLP violation” as cover for a more dangerous reality: the company systematically ignored endpoint compliance, exposed sensitive client data, and retaliated against a domain expert who documented the risk.
These actions are not only unethical—they are actionable under federal and state law.
This wasn’t sophisticated hacking. It was internal policy collapse:
I was directed to use a QBE-issued laptop to access both QBE and Mphasis systems—violating QBE’s own Group Acceptable Use Policy (Page 10, Section r).
From October to December 2024, I raised security concerns including:
As a former technical contributor to QBE’s infrastructure modernization and document intelligence efforts, I witnessed firsthand how endpoint mismanagement, policy conflicts, and ignored internal warnings led to one of the most avoidable healthcare data breaches in recent memory.
After my overseas termination, the QBE laptop sat idle in my NY apartment for 5+ months. No return label. No FedEx support. It took a federal court order to resolve the return logistics. The final destination?
QBE VP, 55 Water Street, NYC
This wasn’t an isolated mistake—it was part of a systemic breakdown. QBE and Mphasis operated without secure asset controls, issuing leased laptops with no return audit.
I raised these issues formally—through internal channels and directly with legal and compliance stakeholders. The warnings went unheeded. Instead, I was terminated abroad, without ever being provided a proper return protocol for the QBE device. The same unmanaged device was later cited as part of the breach vector.
Outsourcing Without Oversight:
QBE partners with Indian offshore vendors that routinely operate with elevated privileges, zero physical verification, and a culture of "make it work, no questions asked." The breached data was never properly protected because it was never properly governed. Leased machines, shipped across borders, were never audited. Virtual sessions with sensitive U.S. healthcare data were accessed from remote regions where HIPAA and U.S. cyberlaw have no practical reach.
The Data Exposed:
This breach affected data that included:
A senior technologist I welcomed at Mphasis New York was wrongfully terminated after raising whistleblower concerns about security risks. He faced retaliation, age-based harassment, and denial of resources—despite key contributions to AI projects. Backed by emails, HR records, and project docs, this case reflects clear violations: whistleblower retaliation, age discrimination, and wrongful dismissal.
Disclaimer: Protected Legal Submission
This site contains content directly related to the pending matter Mphasis Corporation v. Defendant, Case No. 25-cv-3175 (JMF), before the United States District Court for the Southern District of New York.
All materials are presented in furtherance of a constitutionally protected and statutorily authorized whistleblower defense. They include sworn declarations, factual assertions, legal arguments, and evidence submitted by the undersigned, appearing pro se.
These disclosures are expressly protected under:
No information herein was obtained through unauthorized access or improper means. All content is submitted in good faith to expose and document systemic compliance failures and risks to public interest, consistent with applicable law.
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