Hackers typically target sensitive data, and healthcare data is particularly vulnerable. The HIPAA Journal reported in August 2023 that there have been 395 recorded data breaches in the USA this year, resulting in the exposure or theft of medical records belonging to 59,569,604 patients. This problem is also prevalent in Australia, where healthcare providers top the list of the top five sectors to report data breaches in 2023,
One of such example is the Managed Care of North America (MNCA) data breach that occurred between February 6, 2023, and March 7, 2023. As a result, the breach exposed clients’ information, including important government identification numbers, insurance details, and orthodontic care information.
Additionally, Medibank, an Australian health Insurance company, fell victim to a major data breach that affected 9.7 million clients, more than one-third of the entire population of Australia. The attackers were associated with the REvil ransomware gang, an infamous group based in Russia.
The implications of these breaches are significant and far-reaching. Personal identity theft, public exposure of medical history, and more sinister actions are all potential consequences of a healthcare data breach.
In this article, we will explore some of the unpleasant outcomes that can occur when healthcare data is compromised. But first, let’s define exactly what a healthcare data breach is.
What is a data breach in healthcare?
The United States Department of Health and Human Services defines a data breach as “the illegal use or disclosure of confidential health information that compromises the privacy or security of individuals. Furthermore, the impacted individuals may suffer financial loss and reputational damage.
This definition is also similar to the Australian My Health Record Act of 2012. As per its provisions, a data breach can be defined as two distinct scenarios:
- Unauthorized access, utilization, or sharing of health data stored in an individual’s My Health Record.
- A situation encompassing: a) The occurrence or potential occurrence of an event that could jeopardize the security or integrity of the My Health Record system. b) The emergence or potential emergence of any circumstances that might have, or could potentially have, a negative impact on the My Health Record system’s security or integrity. This includes situations, whether or not they involve a violation of the My Health Records Act itself.
HIPAA defines a data breach as “the procurement, access, use or exposure of confidential health information illegitimately, compromising the privacy or security of that confidential health information.
It’s important to keep in mind that a healthcare data breach can also occur when clients’ personal information is exposed or stolen due to a breach in a healthcare establishment such as a hospital, healthcare management organization, or similar institution.
Consequences of Data Breach in Healthcare.
What happens when there is a healthcare data breach?
Most persons may still remember the Anthem Blue Cross Blue Shield data breach in 2015 and how the personal information of over 147 million clients was stolen. However, fewer persons may have heard the story of Deborah Gilbert, a lady affected by the breach. She later discovered that her personal identity had been stolen and used to open fraudulent credit accounts, which were used to make transactions. She spent months trying to repair her critically impacted credit history.
There’s more… As a result of the compromise, Anthem Blue Cross Blue Shield had a class action filed by their clients whose data was exposed during the breach. Eventually, they agreed to pay $16 million, a record settlement to clients affected by the breach.
You may argue that $16 million may not be much of a big deal for a large organization worth over $100 billion. However, the negative publicity brought by that breach must have affected their client base, as many clients may have left them and discouraged others from joining the organization. In the long run, the effect that breach had on the organization may run into over $100 million.
We will review other consequences of a data breach in the healthcare sector.
- Identity theft and medical fraud.
The story of Deborah captures the point of identity theft, which is a major consequence of healthcare data breaches. Aside from financial loss and credit damage, like in Deborah’s case, identity theft can also cause emotional stress, legal troubles, loss of time, employment challenges, and more.
- Reputational Damage.
The consequences of a healthcare data breach can be detrimental to one’s reputation, especially if the patient has chosen to keep their medical information confidential. The late Chadwick Boseman’s courageous battle with colon cancer serves as a poignant example of this. His passing shocked the world, as he had privately fought the disease for years before his death. Imagine the profound reputational consequences if his health struggles had been exposed prior to his passing. Such revelations could have cast a shadow over his career and inflicted significant emotional distress for him.
- Financial Loss.
A healthcare data breach can result in financial loss for the victim. This is because many individuals use their personal data as passwords for online banking and other digital platforms. If this information is compromised, hackers can easily gain unauthorized access to the victim’s bank accounts. Furthermore, dealing with fraudulent charges on credit reports can be costly and inconvenient, something most people would prefer to avoid.
- Damage to Public Trust.
When a healthcare data breach occurs, it can further undermine the public’s trust in institutions. This lack of confidence in the ability of institutions to safeguard personal data can have significant repercussions for the healthcare industry as a whole.
4 Ways To Prevent Data Breaches in Healthcare.
Preventing data breaches in the healthcare sector is possible if the right steps are followed. We will show you how to avoid data breaches in healthcare in this section:
- Compliance and Security Measures.
The fight to prevent data breaches in the healthcare sector has to begin from here. Compliance with regulatory requirements ensure that the IT policy aligns with relevant healthcare regulations, such as HIPAA (Health Insurance Portability and Accountability Act) or GDPR (General Data Protection Regulation).
Strong security measures, such as firewalls, intrusion detection systems, encryption, etc., are very important to prevent hackers from accessing your database. Firewalls are like security guards in a building. They prevent strangers from gaining access to your database. Intrusion detection systems, as the name goes, raise an alarm whenever an unusual activity, such as heavy data transfer, is noticed in your database. This alone will reduce the impact a data breach has to the bare minimum.
For instance, in the case of Managed Care in North America, it took almost a month before they were able to stop the hackers. If they had an effective intrusion detection system, they might have been able to halt the hackers in less than 24 hours. Encryption scrambles the data in your database, making it extremely difficult for hackers to decipher. So even if they manage to access your data, without the encryption key, the stolen data is useless to them since they won’t be able to understand it.
- Educate Employees About Cybersecurity Best Practices.
“Employees are often targeted by hackers who attempt to access organizations’ databases by compromising their devices and exploiting employees’ administrative privileges. To address this, it is advisable to provide cybersecurity training to your employees. Well-informed employees are more likely to detect any irregularities, as they possess the necessary knowledge and can effectively manage potential security breaches.”
- Notify affected individuals promptly.
How does this help prevent data breaches in the healthcare sector? When individuals are notified of a data breach, they can take necessary actions to protect themselves from the repercussions of the attack. Those who have passwords linked to their personal information can promptly change them or take other appropriate measures to mitigate potential attacks. Effective communication is not only a duty of care but also a mandatory requirement under the cybersecurity regulations of most jurisdictions.
- Have a response plan.
Having a well-defined response plan is crucial in the event of a data breach. It outlines the necessary steps to be taken after a breach occurs, which can significantly impact the severity of the breach and the organization’s ability to effectively manage the situation. As a business leader, it is imperative to ensure that your IT team has developed and regularly tests a response plan for handling data breaches.
How To Respond When There Is a Healthcare Data Breach.
Below are a few steps that would be effective as a response to a data breach:
- Contain the breach:
After discovering a breach, the first step is to contain it by disconnecting affected systems from the network, changing passwords, and deactivating user accounts. This will at least ensure that the breach will not exceed the extent it has gotten to. After it has been contained, other steps can follow.
- Investigate the breach.
The goal of this investigation is to find out the cause of the breach and how to prevent it from reoccurring in the future. An investigation will also help you discover if the breach spread beyond the areas you thought and any motive behind it if there was any.
- Notify affected individuals.
When people are notified that they were affected by a data breach, they can react appropriately to any consequence that could come from a data breach. They could change passwords and take other steps to protect themselves.
- Report to concerned authorities.
Comply with legal and regulatory requirements by reporting the breach to the appropriate authorities, such as data protection authorities or law enforcement agencies.
- Take Steps to Avoid a Repeat.
Your investigation would reveal the causes of the breach, and then you can take steps to prevent a repeat in the future.
- Hire a cybersecurity forensic expert.
Engage qualified forensic experts to investigate the breach, identify the vulnerabilities exploited, and ensure a thorough understanding of the incident.
Note: If you operate in Australia or maintain the health records of individuals in Australia under the Health Record System, you must comply with the My Health Records Act. This legislation requires that any breach or potential breach within the system be reported to the Australian Digital Health Agency.
Remember, a response plan should be regularly reviewed and updated to align with evolving threats and technologies. It is essential to communicate and train employees on their roles and responsibilities within the response plan to ensure a coordinated and effective response to data breaches.
Bottom line.
In today’s digital economy, prioritizing data security is of utmost importance. Alongside the preventive measures mentioned earlier for mitigating healthcare data breaches, it is crucial for organizations to invest in robust data security measures. By hiring cyber security experts, providing staff with comprehensive training on security protocols, and implementing other necessary measures, organizations can establish a resilient database that poses significant challenges for hackers attempting to breach it. Such investments not only safeguard sensitive information but also shield healthcare organizations from the detrimental consequences that data breaches can inflict.