How to Prevent Data Breaches in Healthcare

For the 13th consecutive year, healthcare leads all industries in data breach costs, with the average breach now costing $10.93 million according to IBM's 2023 Cost of Data Breach Report.

What’s more, healthcare organizations take over 300 days on average to identify and contain a breach. This is longer than any other sector.

These numbers aren’t just statistics.

They represent compromised patient trust, devastating financial losses, and in some cases, the complete shutdown of healthcare facilities.

A single breach can paralyze operations, expose sensitive patient data, and inflict lasting damage to a facility’s reputation.

This guide will help healthcare organizations protect themselves against data breaches.

We’ll cover why healthcare is increasingly targeted, explore common attack vectors, and outline actionable strategies to protect your facility’s critical data.

Why is the Healthcare Industry such an attractive target?

Several factors make the healthcare industry particularly attractive and vulnerable sector for hackers:

Sensitive and valuable data

Healthcare organizations store sensitive patient information. These include patient names, social security numbers, dates of birth, complete medical records, insurance details, and billing information.

For criminals, this data means the ability to use it for identity theft, fraud, or sell it on the dark web for significant sums.

Legacy systems

Many healthcare facilities continue to rely on outdated systems and software that may have known vulnerabilities or lack necessary security features. This makes it easier for criminals to exploit weaknesses and gain unauthorized access to sensitive data.

Limited cybersecurity resources

Healthcare providers naturally prioritize patient care, often allocating limited resources away from cybersecurity. As a result, this leads to gaps in security infrastructure, staff training, and technical expertise.

Interconnected networks

The healthcare industry is increasingly reliant on interconnected networks and systems to share patient data between providers, insurers, and other stakeholders. This interconnectivity increases the attack surface for threat actors which in turn increases the risk of a data breach.

Rapid adoption of new technologies

The healthcare industry is continually adopting new technologies, such as telemedicine, electronic health records (EHRs), and connected medical devices. While these advancements improve patient care, they can also introduce new vulnerabilities and potential attack vectors for criminals.

High-stress environment leading to security negligence

Healthcare providers often work in high-stress environments, which can result in employees being more susceptible to social engineering attacks, such as phishing emails. Criminals can exploit this by using tactics that prey on human vulnerabilities, such as urgency or fear.

Regulatory compliance

Healthcare organizations are subject to strict regulations and compliance requirements, such as the Health Insurance Portability and Accountability Act (HIPAA) in the United States. Non-compliance can result in severe penalties, which makes organizations more likely to pay ransoms or quickly settle breaches to avoid regulatory scrutiny.

When combined, these factors make the healthcare industry an attractive target for criminals. Healthcare providers need to prioritize cybersecurity in order to protect sensitive patient data.

RECOMMENDED READING: The largest healthcare data breaches

How criminals typically breach healthcare data

We’ve looked at why the healthcare sector is such a tempting target. Now, let’s look at the strategies bad actors typically use to conduct their attacks.

Phishing

Criminals often use phishing emails that appear to be from trusted sources to trick healthcare employees into providing login credentials or clicking malicious links, leading to unauthorized system access.

As I mentioned, in a high-stress environment, it is quite easy for an employee just to skim an email, overlooking all the potential warning signs that this might be phishing.

Ransomware and malware infections

This method is connected to phishing and also relies on the high-stress environment many healthcare professionals find themselves in.

In this method, attackers deploy ransomware and other types of malware to infect healthcare systems, encrypt sensitive data, and demand a ransom for its release. These infections can lead to significant downtime and disruption of services. Even when backups exist, double-extortion attacks are used to demand a second ransom not to release the sensitive data captured.

Insider threats and human error

Employees, contractors, or other insiders may intentionally or unintentionally cause data breaches. This often happens via unauthorized access, data mishandling, or sharing sensitive information with unauthorized individuals.

Weak password policies and practices

Poor password management or employees using weak, easily guessable passwords can make healthcare systems more susceptible to unauthorized access and data breaches. According to IBM, 59% of healthcare incidents involve the use of stolen credentials.

Third-party/vendor risks

Data breaches can occur due to vulnerabilities in third-party systems or services, such as billing or EHR providers. Inadequate vendor risk management can expose healthcare organizations to additional threats.

RECOMMENDED READING: How to Prevent Third-party Data Breaches

Outdated systems and software

Healthcare organizations using legacy systems or outdated software may be vulnerable to known security flaws. These can be exploited by malicious users to gain unauthorized access.

Unsecured medical devices and IoT devices

Connected medical devices and IoT devices with inadequate security defenses can serve as entry points for attackers. Unsecured devices can lead to a system compromise and ultimately a data breach.

5 Major Data Breach Consequences for Healthcare Organizations

I already briefly mentioned what a devastating effect a data breach could have on a healthcare organization, but let’s go a bit deeper into the topic and see exactly what might happen if your practice’s data is breached.

Compromised patient privacy

When personal health information is leaked, it can lead to a violation of patient privacy. Obviously this can cause tremendous amounts of stress for the victims and potentially harm the provider-patient relationship.

Significant financial losses

Data breaches can result in significant financial losses for healthcare organizations. These often include regulatory fines, civil lawsuits, and the cleanup costs after a breach.

Reputational damage

Healthcare providers that experience a data breach often suffer from reputational damage as well. This can lead to a loss of trust from patients and stakeholders and potentially impact future business.

Disruption of services

Data breaches can cause downtime and disrupt critical healthcare services, potentially affecting patient care.

Legal and regulatory consequences

Healthcare organizations are subject to strict regulations and compliance requirements, such as HIPAA, in the United States. A data breach can result in significant consequences like penalties, fines, and increased scrutiny from regulatory bodies.

12 Ways to Prevent Data Breaches for Healthcare Organizations

1. Monitor for potential data breaches

One of the greatest challenges with data breaches is that they aren’t always easy to find. In fact, many organizations go for months without even realizing that something’s amiss.

At the same time, the best way to prevent a data breach is to mitigate the risk before it’s exploited.

Luckily, there are several data breach detection tools that let you monitor and get alerted to potential threats before they become issues.

For example, software like Breachsense proactively monitors the dark web to find leaked company data to help you prevent data breaches before they happen.

2. Develop a comprehensive cybersecurity strategy

The second thing to do is to create a holistic cybersecurity strategy that addresses potential threats, outlines best practices, and incorporates training programs for staff.

Moreover, this strategy should be regularly reviewed and updated to adapt to new threats against your industry.

3. Conduct regular risk assessments

Conduct regular security audits, penetration testing, and vulnerability assessments. These tests will help you identify areas for improvement and ensure that your security controls are functioning as intended. To help avoid biases and have a realistic view of an attack, it often makes sense to hire an external cybersecurity firm to conduct the test.

4. Implement strong access controls

Implement role-based access controls (RBAC) based on the principle of least privilege. Each user should have minimum permissions needed for their role, with access regularly audited and adjusted. Create a documented process for granting, reviewing, and revoking system permissions.

5. Train employees on cybersecurity best practices

Provide ongoing training for employees on cybersecurity best practices, including how to recognize phishing attacks, the importance of strong passwords, and how to securely handle sensitive patient information. Regular training will ensure that staff members are able to identify and prevent potential threats.

6. Encrypt sensitive data

Protect sensitive data by encrypting it both at rest and in transit. Encrypting data helps prevent unauthorized access, even if a breach occurs. Ensure that encryption keys are securely managed and stored separately from the encrypted data.

7. Keep software and systems up-to-date

Regularly update all systems and software with the latest patches and security updates. This helps to protect against known vulnerabilities and reduce the risk of data breaches. Implement a patch management process to ensure timely and consistent updates across your organization.

8. Leverage network segmentation

Divide your organization’s network into smaller, separate subnets to minimize the potential impact of a breach. By isolating critical systems and sensitive data, network segmentation can help limit the spread of an attack and protect crucial systems.

9. Monitor and analyze network activity

Continuously monitor your network to identify suspicious activity and potential threats. This will enable your organization to detect and respond to cybersecurity incidents faster, minimizing the damage caused by an attack.

10. Establish a security incident response plan

Develop a well-defined incident response plan to ensure that your organization can respond effectively to a security breach. This plan should include clear roles and responsibilities, communication protocols, and procedures for containing and recovering from an attack.

11. Implement multi-factor authentication (MFA)

Deploy MFA across your organization to add an extra layer of security beyond just a password. MFA requires users to provide additional verification, such as a fingerprint, one-time token, or hardware key, in addition to their password.

12. Secure medical devices and IoT devices

Ensure that connected medical devices and IoT devices are properly locked down. Very often, they will not support this functionality out of the box, which means secondary devices, like a proxy, may need to be placed in front of them to help limit access.

Conclusion

Healthcare organizations must take a more proactive approach to cybersecurity.

The strategies outlined above, from implementing network segmentation to investing in employee training and security tools, are essential for protecting sensitive patient data and avoiding data breaches.

With healthcare remaining the most targeted industry for cyberattacks, organizations cannot afford to treat security as an afterthought.