Part 2: The Threat Landscape — How Healthcare Data Breaches Happen

External Threats: Cyberattacks on the Rise

According to federal data, 2024 marked the third consecutive year with more than 700 large-scale healthcare data breaches, impacting nearly 275 million patient records.

Ransomware and Network Attacks

• The Change Healthcare ransomware breach exposed data from roughly 192.7 million individuals after attackers exploited a remote access portal lacking multi-factor authentication.
• These attacks often encrypt patient data, halt billing, and disrupt care for days or weeks.

Vendor and Third-Party Risks

• The Kaiser Foundation breach affected 13.4 million people when a vendor’s compromised credentials were used to access their systems.
• Business associates are required under HIPAA to sign Business Associate Agreements (BAAs), but enforcement and monitoring are critical.

Internal Threats: The “Snooping” Problem

Not all breaches come from hackers. Unauthorized employee access, often called “snooping,” remains one of the top causes of HIPAA violations.

Employees sometimes check on a celebrity patient, a neighbor, or family member out of curiosity or concern. But intent doesn’t matter: any access without a valid, job-related reason can lead to termination, fines, or criminal prosecution.

Building a strong access-control policy and monitoring system helps prevent this kind of insider threat.

Real-World Consequences of HIPAA Breaches

The penalties for non-compliance can be staggering:

• BayCare Health System — $800,000 fine for poor access management
• Warby Parker — $1.5 million penalty for inadequate risk analysis
• Hospice of North Idaho — $50,000 fine for a stolen laptop

And for employees:

• Jail sentences ranging from 30 days to 4 years have been issued for PHI theft and sale.

What You Can Do to Prevent a Breach

1. Use Multi-Factor Authentication (MFA) — Essential for all remote access.
2. Review Vendor Security — Ensure BAAs are in place and updated annually.
3. Implement Role-Based Access Control (RBAC) — Limit access to PHI by job function.
4. Monitor and Audit Regularly — Automated audit logs detect unusual access.
5. Provide Ongoing HIPAA and Cybersecurity Training — Keep staff alert to phishing and social-engineering tactics.

How Cyber Insurance Protects Healthcare Organizations

Even the best defenses can be breached. Cyber insurance for healthcare helps cover:

• Data recovery and forensic investigation
• HIPAA violation fines and legal expenses
• Patient notification and public-relations costs
• Business interruption due to cyber events

Leavitt Select Insurance helps healthcare organizations align coverage with their risk management and HIPAA goals.

Final Takeaway

Breaches can happen to anyone, from large hospital networks to small medical practices. But organizations that combine proactive security, HIPAA compliance, and cyber insurance protection are far better equipped to handle them.

Connect with our team to learn how a proactive risk management approach can safeguard your patients and provide peace of mind.