What is a Security Breach in Healthcare? 5 Signs To Watch For

Most healthcare data breaches stem from phishing attacks or insider threats. Recognizing these warning signs can save your organization thousands. Find out how you can secure patient data with our comprehensive guide. 

Read on to learn more about: 

• What security breaches in healthcare are, and what are the common types
• Why healthcare companies are especially at risk for cyberattacks‍
• Common signs that indicate your system has been compromised‍
• Monitoring and guarding your system against nefarious actors ‍
• 2 healthcare system breaches case studies‍
• Some FAQs and how Blaze.tech can safeguard your healthcare data

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What Is a Breach in Healthcare?

A healthcare breach occurs when a medical business’s private patient information is accessed, shared, or taken without permission. 

Nefarious actors can criminally commit this devastating act through hacking or cyberattacks. Still, it can also be a consequence of pure negligence, such as accessing lost or stolen devices or mishandling patient records.

A healthcare breach seriously compromises patient privacy and introduces an unenviable bevy of legal ramifications for health providers. Thus, learning to recognize the early signs can help prevent them while providing security for patients and providers. 

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Common Types of Data Breaches in Healthcare

In healthcare, data breaches can occur in various forms, including:

• Hacking or IT Incidents: Unauthorized access to health care systems through cyberattacks, such as ransomware or phishing.

• Lost or Stolen Devices: Misplaced or stolen laptops, smartphones, or USB drives containing sensitive patient information.

• Insider Threats: Employees or contractors accessing or disclosing patient data without authorization, either maliciously or accidentally.

• Human Error: Mistakes like sending patient information to the wrong recipient or improperly disposing of medical records.

• Physical Theft: Stealing physical documents or devices from healthcare facilities.

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Why Healthcare Companies Are a Prime Target for Hackers and Cyberattacks?

If we look into why the healthcare sector is targeted in data breaches, it's because of the valuable patient information they contain. This information can include everything from names and addresses to more sensitive details like health history.

One instance reveals that stolen medical files are more valuable than other types of files. Specifically, according to healthcare security statistics, the price of one patient file on the black market is about $250. That’s a whopping 46 times more valuable than stolen credit cards, which are valued at $5.40.

So, what is the main cause of healthcare data breaches? It's typically old computer systems and legacy programs that need to be updated. While it’s impossible to be entirely breach-proof, investing in a modern, no-code internal app can exponentially reduce your risk. 

Healthcare data is a jackpot for hackers, brimming with invaluable patient information. A HIPAA-compliant, no-code tool like Blaze can be your digital shield, effortlessly fortifying your data defenses.

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How to Recognize a Data Breach

Not every data incident counts as a data breach, so uncovering a dangerous breach can be deceptively tricky.

Think of it this way: We all know what a forest fire is. But at what point does a “normal” fire turn into a forest fire? What’s the tipping point between a tree – or a few trees – being on fire and then a blaze being classified as a forest fire?

Similarly, when we answer, “what is a breach in healthcare software systems,” we look for that singular tipping point — that one tree on fire that we must extinguish before it incinerates the entire forest. 

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Examples of Data Incidents vs Breaches

First, let’s discuss near misses: Instances when data breaches are dangerously close to occurring, but in the end, no data is exposed. Such situations are called “data incidents.” 

Think of these as when a tree catches fire, but the flames are quickly extinguished through divine intervention or a sudden rainstorm. Thankfully, a data incident doesn’t necessarily equal a data breach. Examples of a data incident include, but are not limited to:

• A laptop containing health records is stolen. However, the laptop is recovered before any logs or data can be accessed. 

• An employee accidentally emails patient health information to themselves but reports the incident before any harm is done.

• Your IT professional opens the remote portal on their tablet while at a café, leaving the screen visible to passersby as they get up from their table to fetch their coffee. Luckily, no one glances at the data on the screen. 

Ultimately, a “data incident” is a broader term that includes any security event that could compromise patient data — or no harm could be inflicted. However, if there's no immediate evidence that the data was accessed or used improperly, it's considered an incident, not a breach. 

A healthcare data breach is a specific incident that compromises patient privacy. What sets this apart from other incidents is that an unauthorized person actually accesses confidential patient information. In other words, something is only considered a “data breach” if an unauthorized party acquires patient data. 

Examples of a data breach in healthcare include, but are not limited to:

• A hacker gaining entry into a provider's electronic health record system.
• An employee looking at a patient's records without any work-related reason.
• Sharing patient information without consent or necessity. 
• Sending a patient's health records to the wrong person or organization.
• Leaving printed patient information visible in a public area.

The key to recognizing privacy breaches in healthcare is to determine whether unauthorized parties have accessed patient information. When this happens, a breach has occurred, and this isn’t just another IT problem — it concerns your entire organization, and has legal consequences. 

These breaches can be devastating because they involve sensitive healthcare and patient information. Unlike a system outage, which affects accessibility, or a software bug, which might affect functionality, a data breach directly compromises patient privacy and trust.

In summary, a data breach occurs when an unauthorized person accesses protected health information (PHI). Investing in robust healthcare data management software is key to preventing such breaches.

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Common Signs of a Healthcare Breach 

Before we discuss some methods for preventing data breaches to keep patient data safe, it’s crucial to recognize the signs that could hint at a data leak. He­re's what to keep an eye out for in your system software:

• Too many failed login tries: It might me­an someone is trying hard to access data they shouldn't see.

• Data is being sent to specific parties without reason: It could mean that your database has been hacked, and the patient information was transferre­d wrongfully.

• Unusual edits are being made to patient records: Quite possibly, a malicious actor has gained access to your system and is tinkering with confidential health details.

• System/software alerts: These are typically the alarm bells of an impending breach — if your system picks up uncommon or unauthorized activity, someone might be attempting to hack into it. 

• Sudden, odd tweaks in system setup: It could suggest an outside­r has already penetrated your system and is attempting to cover their tracks.

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What Steps Should Be Taken if a Breach Occurs?​

If you find these issues, you may be the victim of a breach. If so, you must alert those affecte­d. You’ll need to draft a report on the leaks, including the nature of the breach, the types of information compromised, and steps they can take to protect themselves, such as credit monitoring and identity theft protection. 

If the data leak exte­nds to 500 or more people, you’ll need to take even more actions, including: Filing a report with the U.S. Department of Health and Human Services (HHS), the FBI, and/or Cybersecurity and Infrastructure Security Agency (CISA), and your state’s authorities, depending on your jurisdiction. 

Additionally, contacting your attorneys is advisable, as they should have the skills to help you through the difficulties of a data breach.  

What Are the Penalties for Failing to Report a Data Breach?​

Failing to report a data breach can be a business-ending or criminal mistake. Non-compliance with the directives mentioned above can lead to substantial fines ranging from $100 per violation to $50,000 or more, capped at $1.5 million annually for each violation category, depending on the severity and duration of non-compliance. 

Additionally, intentional or egregious failures can result in criminal charges, including significant fines and possible imprisonment for individuals involved.

Regulations vary at the state level, but non-compliance may result in additional penalties. Organizations failing to comply may face fines ranging from thousands to millions of dollars, coupled with jail time. You’ll need to contact your state’s health department for more details. 

Keep in mind that failure to comply has repercussions that extend beyond the long arm of the law. Beyond financial penalties and jail time, failure to report can severely damage your reputation, triggering a loss of public trust and potentially causing lasting harm to customer or patient relationships.

The bottom line: If your system falls victim to a breach, report it immediately.  

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Actionable Steps to Monitor and Prevent Data Breaches

It’s ideal to fortify your data security against growing cyber thre­ats. Here are some­ practical steps you should consider:

• Update­ and patch regularly: Get ahead of hacke­rs. Ensure you are up-to-date with the latest se­curity patches.

• Security training: Give staff the­ skills needed to ide­ntify and handle security threats with re­gular training. Keep up to date with emerging threats and issues. 

• Multi-factor authentication (MFA): MFA provides extra se­curity, challenging unauthorized access. The two most popular types are 2-factor authentication (2FA) and single-sign-on (SSO).

• Audits: Conduct re­gular audits and test for vulnerabilities with mock attacks and other stress tests. These ensure your system is robust and resilient. 

• Compliant tools: Use­ AI tools, like Blaze, a HIPAA-compliant app builder, to build your systems securely.

• Implement robust security protocols: Regularly update systems, use encryption, and conduct risk assessments.​

• Develop an incident response plan: Establish procedures for prompt action when a data incident or breach occurs.​

The­se steps help you comply with the HIPAA bre­ach notification rule. This rule states that affe­cted individuals, the Departme­nt of Health and Human Services (HHS), and in ce­rtain situations, the media, must be notifie­d of a breach if it affects many people­.

Handling health care data effe­ctively is essential for me­eting legal obligations and for maintaining patient trust and the­ safety of health insurance de­tails. Yet, if you put in the elbow grease, stay vigilant and up to date with the latest threats, you’ll properly protect your business and your patients from hackers and other vile criminals.  

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Case Studies on Healthcare Breaches

The following are 2 recent instances of actual healthcare database breaches. They illustrate how the breaches occurred and both companies' steps to fix the issues. 

Genea Fertility Clinic Breach

​In February 2025, Genea, a leading Australian fertility services provider, experienced a cyberattack that compromised sensitive patient data. Gena discovered the breach when suspicious activity was detected on their network, which led them to find unauthorized access to approximately 940GB of data, including personal and medical information such as names, contact details, Medicare numbers, medical histories, and test results.

Genea shut down the affected systems to contain the breach and initiated an investigation with external cybersecurity experts. They notified relevant authorities to ensure regulatory compliance. 

To support affected patients, Genea offered services through IDCARE, Australia's national identity and cyber support service. This aimed to restore personal information and address potential identity theft concerns.

After the hackers published portions of the stolen data on the dark web, Genea obtained a court-ordered injunction to prohibit unauthorized parties from accessing, using, or disseminating the compromised data. 

The Australian Federal Police launched an investigation into the breach, collaborating with Genea to mitigate further risks. At the time of this writing, the investigation continues to be ongoing. 

Vastaamo Psychotherapy Center Breach

Since as early as 2018, Finland's Vastaamo Psychotherapy Center experienced significant cybersecurity breaches. An attacker stole highly sensitive psychotherapy records of around 40,000 patients, including detailed therapy session notes. 

Unfortunately, the company didn’t report this activity to the authorities or patients until 2020 — a poor decision that sealed its fate. Once public awareness spread, Vastaamo finally alerted affected patients, provided guidance on protecting their personal data, and collaborated with Finnish law enforcement and cybersecurity agencies — yet they were too late. 

The delayed response severely damaged Vastaamo’s reputation and trust with patients and regulators. Finland's Data Protection Ombudsman conducted investigations, which resulted in hefty fines. The fallout resulted in severe financial repercussions, ultimately driving Vastaamo into bankruptcy in early 2021.  

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Frequently Asked Questions

Q1. How Can Healthcare Providers Prevent Data Breaches?

Healthcare providers can prevent data breaches by using strong passwords, encrypting data, training employees on security practices, regularly updating software, and conducting security audits to identify and fix vulnerabilities.

Q2. What Should I Do if I Suspect a Data Breach in My Healthcare Organization?

If you suspect a data breach, report it immediately to your organization's security team or IT department. Follow your organization's breach response plan, which may include securing affected systems, notifying affected individuals, and reporting the breach to authorities.

Q3. What Are the Consequences of a Data Breach in Healthcare?

The consequences of a data breach in healthcare can be severe, including financial penalties, legal action, loss of patient trust, and damage to the organization's reputation. Patients affected by a breach may also face identity theft and financial loss.

Q4. How Does HIPAA Protect Against Data Breaches in Healthcare?

HIPAA sets standards for protecting sensitive patient information. It requires healthcare providers to implement safeguards, such as encryption and access controls, and to follow procedures for handling and reporting breaches. Compliance with HIPAA helps minimize the risk of data breaches and ensures patient information is kept secure.

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Keep Malicious Actors out of Your Healthcare System with Blaze

Want bette­r data protection? Build your own healthcare data system with Blaze. Here’s why you should select Blaze:

• HIPAA compliance and lockdown security: You won’t need to worry about HIPAA compliance because Blaze.tech checks the boxes. Plus, the platform provides enterprise-level security, with features like single sign-on, role-based access, and 2-factor authentication. 

• No-code simplicity: You can create a healthcare software system that fits your specific needs without hiring a design team. This will save you tons of time, as you won’t need to shop around and communicate with developers. 

• Support all the way: Blaze’s implementation team will ensure you know how to operate the platform after you sign up. They’ll walk you through the building interface and show you all the ins and outs. When you finish, they’ll help you publish and maintain your app.

Ready to take your healthcare software to the next level? Sign up for a demo today.