The modern healthcare sector has become an increasingly attractive target for cybercriminals. With new stories of data leaks and critical infrastructure vulnerabilities making headlines seemingly every week, what is it about healthcare organizations that makes them such a tempting mark for digital attacks?
It turns out the reasons are numerous and complex. Let's explore why this industry is so frequently in the crosshairs of cyberattacks and why cybersecurity is vital to modern healthcare today.
Healthcare data is a hacker's jackpot
Health records are a treasure trove to hackers — personal identification numbers, medical information, and financial transaction details are all highly valuable on the black market. The sheer amount of money involved is a big reason healthcare institutions are prime targets for ransomware attacks and data breaches.
One major cyberattack that shook the healthcare industry occurred in early 2024. The target was Change Healthcare, a company owned by UnitedHealth Group. Using stolen credentials, the attackers managed to gain access to the company's Citrix remote access service, which was particularly vulnerable because it lacked multi-factor authentication. UnitedHealth paid a reported $22 million ransom for the hackers to delete the sensitive data they stole. Instead, the threat actors took the money and ran. Being able to monitor, detect, and alert for unauthorized movement on application servers storing protected data could have given Change Healthcare an earlier warning of a potential security breach.
Record digitization and legacy systems
The rapid digitization of healthcare has significantly increased the number of entry points that cyber hackers can exploit, especially as many healthcare organizations continue to rely on outdated technology and legacy systems. The Federal Bureau of Investigation (FBI) released a notification in September 2022 warning that medical device hardware often remains active for 10-30 years, while the underlying software lifecycles are much shorter. This disparity adds to an already-complex digital environment. In the same communication, the FBI shared that 53% of connected medical and Internet of Things (IoT) devices in hospitals have known critical vulnerabilities.
A staggering 85% of medical organizations have reported using outdated operating systems, leaving them vulnerable to hackers. Compounding this issue is the increasing reliance on cloud services. This long-term reliance on legacy systems like Windows 10 has healthcare IT teams facing the formidable, yet non-negotiable challenge of securing and patching complex infrastructure.
Human error and training gaps
Healthcare professionals primarily focus on patient care and often receive inadequate cybersecurity training. A recent study revealed that 74% of healthcare organizations allocate less than 5 hours to employee IT security and data privacy training for employees, with 35% dedicating a mere two hours or less. This lack of knowledge opens the door for human error.
Hackers use this lack of knowledge to their advantage through phishing attacks. Despite its seemingly playful name, phishing is a serious threat, especially considering that one in seven healthcare employees will fall for a phishing email. This problem can be fixed with more widespread, in-depth cybersecurity training. Though with chronic understaffing and already-stretched budgets, many healthcare organizations find that they simply don’t have the resources to support an in-house team of IT experts to remediate this type of training. As a result, insufficient cybersecurity education leaves healthcare institutions liable to data breaches, ransomware attacks, and other cyber threats.
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Regulatory mazes and compliance complexities
Healthcare organizations must navigate complex regulatory frameworks like the Health Insurance Portability and Accountability Act (HIPAA) to meet stringent data protection standards. However, these regulations present challenges of their own. HIPAA requires security breaches to be reported to the government within 60 days to one year, depending on the number of patients affected. This situation is further complicated by widespread compliance difficulties within the healthcare sector.
A 2024 survey found that 37% of healthcare organizations do not have formal incident response plans even though it’s a HIPAA requirement. The combination of delayed breach reporting, compliance challenges, and insufficient incident response preparation leaves many healthcare providers vulnerable to cyber threats and potential hefty penalties.
The price tag of cyberattacks
The financial impact of cyberattacks on the modern healthcare industry is staggering. According to IBM’s Cost of a Data Breach Report 2024, the average cost of a data breach reached $9.77 million per incident. While this number is down 10.6 percent from 2023’s $10.93 million per incident average, healthcare is still “the top costliest industry for breaches — a spot it’s held since 2011,” according to IBM. The $9.77 million encompasses widespread wreckage by cyberattacks — lost business due to reputational harm, substantial regulatory fines, and costly legal battles and remediation efforts.
Beyond the financial toll, ransomware attacks can have severe consequences for medical practices. Surveys show that 48 percent of attacks compromise patient data, with 27 percent directly affecting patient care. Unlike other industries where cyberattacks primarily disrupt production and profits, it can mean life or death in healthcare — medical records become inaccessible, vital equipment may malfunction, and critical surgeries get delayed. The threat of cyberattacks in healthcare continues to escalate. FBI reports revealed that the healthcare and public health sector was the primary target for ransomware attacks in 2023, underscoring the need for flexible cybersecurity solutions.
Stand strong against cyber threats with C Spire
As cyberattacks continue to evolve and target the modern healthcare sector, selecting an experienced IT partner with cybersecurity expertise is more than a technical necessity — it’s essential to safeguarding patient care and maintaining trust in the system.
Count on a team of over 200 highly certified engineers with decades of experience to deliver advanced security solutions that are perfect for the healthcare sector. By choosing C Spire, you’re getting a partner that understands HIPAA, helps protect sensitive patient data, and minimizes disruptions to your critical operations.
Want to learn more? Reach out for a free IT Healthcare consultation today.
