Transformations in Healthcare Driven by Digitalization Bring Cybersecurity Risks
The healthcare industry is experiencing significant transformation due to the surge in digitalization. Traditional paper-based methods are rapidly being replaced by electronic systems, facilitated by advancements in process automation, artificial intelligence, telehealth, and remote monitoring of medical devices. This substantial shift has led to an unprecedented influx of data.
As reported by the World Economic Forum, hospitals generate a staggering 50 petabytes of data annually. While this shift offers numerous benefits, it also introduces a plethora of cybersecurity challenges. A larger volume of sensitive digital data makes healthcare organizations more attractive targets for cybercriminals. The U.S. Department of Health and Human Services (HHS) documented over 5,150 healthcare data breaches involving more than 500 records from 2009 to 2022, with 2021 witnessing a record high of incidents.
Recent findings from Claroty, based on a survey of 1,100 professionals in cybersecurity, engineering, IT, and networking across healthcare, indicate that 77% of European healthcare workers reported experiencing at least one cybersecurity incident from June 2022 to June 2023. In the Asia-Pacific region, 69% reported similar breaches, with 26% affecting personal identifiable information (PII). South America mirrored this trend, with an alarming 87% of respondents indicating at least one incident, where PII was exposed in 24% of the cases.
The global landscape reflects these alarming statistics. Check Point Research identified a 74% increase in cybersecurity attacks within the healthcare sector during 2022, averaging 1,463 attacks per organization each week. The sensitive nature of the data being handled not only results in significant risks to patient information but also attracts threats like data theft and disruptive cyberattacks that could cripple healthcare operations.
The financial implications of these risks are staggering. According to IBM’s 2023 Cost of a Data Breach report, the average cost of a healthcare data breach reached $10.93 million, significantly higher than the overall industry average of $4.45 million. Notably, costs have increased by 53.3% over the past three years. Given the stakes, healthcare professionals, especially treasurers, are under increasing pressure to prioritize cybersecurity and fraud prevention within their organizational strategies.
The integration of cybersecurity best practices is critical. This includes implementing technology safeguards, such as network intrusion detection, identity and access management, and multi-factor authentication. Equally important are processes designed with security in mind and fostering a culture of awareness among all employees regarding potential digital threats.
The interconnected nature of modern healthcare systems necessitates extending cybersecurity measures beyond internal networks. Organizations must collaborate with vendors, clients, and suppliers to enhance overall security. This intricate web of connections can heighten vulnerabilities, making robust auditing, controls, and risk management essential. Protecting data as it flows through multiple organizations is paramount to mitigating the risk of cybercrime.
Moreover, the rise of connected medical devices within the Internet of Medical Things (IoMT) presents a new frontier for potential cyberattacks. Technologies ranging from automated insulin delivery systems to wearable health monitors are becoming increasingly prevalent, all of which are susceptible to exploitation. Additionally, the shift towards digital payments—both consumer-based and business-to-business—introduces various new attack vectors within an already complex payment ecosystem.
Healthcare organizations, particularly insurers, must navigate cybersecurity challenges unique to the sector, particularly under the rigorous framework established by the Health Insurance Portability and Accountability Act (HIPAA). While striving for digital transformation, maintaining compliance with extensive regulations is essential in safeguarding sensitive information against a backdrop of increasing cyber threats. These regulations address critical risk areas, such as PII and payment information, which are lucrative targets for fraudsters.
The rise of cybersecurity incidents in healthcare has also influenced legislative action, leading to new policy initiatives designed to bolster defenses against digital threats. The Healthcare Cybersecurity Act of 2022, alongside the CDC’s Data Modernization Initiative, exemplifies regulatory attempts to adapt to fast-evolving risk landscapes. Meanwhile, organizations in the EMEA region face even more complex regulatory environments, including EU initiatives aimed at securing healthcare data and systems.
While rapid innovation in healthcare offers enormous benefits, it also entails increased vulnerabilities. Organizations must ensure that security measures are integrated into their digital initiatives from the outset. The focus should be on creating a secure and resilient digital environment, enabled by advanced payment technologies and strategic partnerships, to enhance data protection and operational efficiency in this critical sector. As organizations seek to protect their sensitive information and sustain patient care, robust cybersecurity measures must remain a priority.
