October 21, 2014 By Shane Schick 2 min read

Law enforcement officials are suggesting that cybercriminals are increasingly targeting health care organizations because medical data may be more than 10 times more valuable on the black market than credit card information.

Dave Kennedy, CEO of security firm TrustedSec LLC, told Reuters that those who break into organizations such as Community Health Systems — which was reportedly targeted by Chinese cybercriminals last month — are able to sell large batches of medical data in order to commit fraud. This includes the ability to purchase drugs or even medical equipment that can then be sold.

According to HealthITSecurity.com, the Community Health Systems breach exposed medical data for more than 4.5 million patients, leading the FBI and others to issue warnings about lax information technology security practices in hospitals, clinics and other health care organizations. Unlike credit card fraud, where incidents are usually reported almost immediately after personal information has been lost or compromised, data theft of medical information may go undetected for years because fraudsters use names, policy numbers and diagnosis codes to create fake IDs and phony insurance claims.

Ponemon Institute founder Larry Ponemon told Guardian Liberty Voice that he has seen an increase this year in the number of cyberattacks and the number of stolen records. The percentage of reported criminal hacks has risen from 20 percent in 2009 to 40 percent in 2013, he said.

A clinical diagnostics laboratory based in Huntsville, Alabama, recently notified more than 7,000 individuals of a Health Insurance Portability and Accountability Act (HIPAA) breach after the company discovered protected health information on a third-party server had been unsecured for nearly three years, according to Healthcare IT News. A whopping 39 million people have had their protected health information compromised in HIPAA privacy or security breaches involving 500 people or more.

According to NJ.com, in a 2012 HSS Office of Civil Rights pilot audit program, two-thirds of 115 organizations did not undergo the required HIPAA security and risk assessments. Because business partners of health care organizations could pose a risk as well, they will be included in a similar audit later this year.

Though the culprits for these kinds of incidents vary widely, according to the Memphis Business Journal, health care information has surfaced on a black-market site called The Evolution Market from an entity known only as “ImperialRussia.” A set of five full records — which could include anything from the victim’s name, address, phone number, driver’s license number, Social Security number and date of birth — was going for $8 per record.

Of course, with the increased digitization of all kinds of personally identifiable information, there is no turning back for hospitals and other health care organizations. The diagnosis is simple: Medical data must become more secure. The prescription, however, may take more time to develop.

More from

When ransomware kills: Attacks on healthcare facilities

4 min read - As ransomware attacks continue to escalate, their toll is often measured in data loss and financial strain. But what about the loss of human life? Nowhere is the ransomware threat more acute than in the healthcare sector, where patients’ lives are literally on the line.Since 2015, there has been a staggering increase in ransomware attacks on healthcare facilities. And the impacts are severe: Diverted emergency services, delayed critical treatments and even fatalities. Meanwhile, the pledge some ransomware groups made during…

AI and cloud vulnerabilities aren’t the only threats facing CISOs today

6 min read - With cloud infrastructure and, more recently, artificial intelligence (AI) systems becoming prime targets for attackers, security leaders are laser-focused on defending these high-profile areas. They’re right to do so, too, as cyber criminals turn to new and emerging technologies to launch and scale ever more sophisticated attacks.However, this heightened attention to emerging threats makes it easy to overlook traditional attack vectors, such as human-driven social engineering and vulnerabilities in physical security.As adversaries exploit an ever-wider range of potential entry points…

4 trends in software supply chain security

4 min read - Some of the biggest and most infamous cyberattacks of the past decade were caused by a security breakdown in the software supply chain. SolarWinds was probably the most well-known, but it was not alone. Incidents against companies like Equifax and tools like MOVEit also wreaked havoc for organizations and customers whose sensitive information was compromised.Expect to see more software supply chain attacks moving forward. According to ReversingLabs' The State of Software Supply Chain Security 2024 study, attacks against the software…

Topic updates

Get email updates and stay ahead of the latest threats to the security landscape, thought leadership and research.
Subscribe today