Introduction

Did you know? Healthcare data is among the most sensitive and valuable information out there. Unfortunately, it’s also a prime target for cybercriminals. When healthcare organizations experience data breaches, the consequences can be far-reaching—not just for the institutions, but for the individuals whose data is compromised.

Let’s break down how these breaches on your PHI can lead to disastrous consequences, including identity theft and even insurance fraud!

What’s at Stake in a Healthcare Breach?

Healthcare records are a goldmine for hackers. Unlike a stolen credit card number, which can be quickly canceled, medical data is deeply personal and often permanent. A typical healthcare record might include your…

• Full name and date of birth
• Social Security number
• Home address
• Health insurance details
• Medical history and diagnoses

This comprehensive profile makes it easy for criminals to impersonate someone and commit fraud. That’s one reason that personal health information (PHI) is such an attractive target for thieves. These records sell for as little as $60 on the Dark Web, although the prices can range into the thousands depending on the data.

How PHI Theft Affects You

Why are healthcare breaches a growing concern? Once cybercriminals get their hands on this data, they can use it to open new credit accounts, file fraudulent tax returns, apply for loans or government benefits, and access other services that require identity verification.

Unfortunately, victims often don’t realize their identity has been stolen until they’re denied credit, receive unfamiliar medical bills, or notice strange activity on their accounts. That can lead to one of the most dangerous forms of identity theft: Medical identity theft. This happens when someone uses your personal information to get medical treatment, fill prescriptions or submit insurance claims. It can lead to incorrect information being added to your medical records, which could affect future care. It can also result in denied insurance claims or unexpected bills for services you never received.

Insurance Fraud: Another Costly Consequence

Threat actors also use stolen healthcare data to commit insurance fraud. This can involve:

• Filing fake claims with insurance companies
• Billing for services that were never provided
• Inflating the cost of legitimate procedures

These fraudulent activities drive up healthcare costs for everyone and can lead to legal trouble for victims who are falsely linked to the crimes.

Protecting Your PHI

Meanwhile, the effects of a healthcare data breach can linger for years. Victims may face damaged credit scores, legal disputes over fraudulent charges, hours spent resolving identity issues, and a general loss of trust in their healthcare providers.

While you can’t always prevent a breach, you can take steps to protect yourself:

• Regularly monitor your credit and insurance statements
• Use strong, unique passwords for healthcare portals
• Be cautious about sharing personal information online
• Consider identity theft protection services

Real World Incidents

A third-party dental marketing agency was recently at the center of a massive data breach that exposed the personal information of more than 2.7M patient profiles and 8M appointment records.

The breach occurred due to an unsecured database, which left sensitive data accessible online without proper protection. The leaked information included names, addresses, phone numbers, insurance details, and in some cases, medical histories.

Experts warn that such breaches can have long-term consequences for victims, including financial loss, damaged credit, and compromised medical records.

The incident highlights the growing risks associated with third-party vendors in the healthcare industry, and reminds us of the urgent need for stronger data security practices and oversight.

Conclusion

Healthcare data breaches are more than just IT issues. They’re extremely personal. Unlike other types of cyber events, the personal nature of your medical information makes these incidents especially invasive and difficult to recover from.

The more you know about threats to your PHI, the better you can protect your healthcare data from cyberattacks.

The post How Healthcare Data Breaches Fuel Identity Theft and Insurance Fraud appeared first on Cybersafe.