Healthcare Data Breaches Now More Profitable Than Credit Card Theft

Cybercriminals are shifting their focus from financial data to healthcare records, and for a good reason—medical data is far more valuable. While stolen credit card information sells for just a few dollars on the dark web, a single healthcare record can fetch up to $1,000.

But it’s not just about profit. Healthcare systems are highly vulnerable to attacks due to outdated security, complex networks, and the critical need for uninterrupted patient care. This makes them an easy and lucrative target for hackers.

So, what’s behind this shift? And more importantly, how can healthcare organizations protect themselves? Let’s take a closer look.

Healthcare Data Breaches Reported Topped Finance in 2024

According to the latest Kroll Cyber Risk Data Breach Outlook Report for 2025, published on February 24, 2025, healthcare data breaches have officially surpassed those in the financial sector.

Key Findings from the Report:

• Healthcare accounted for the highest number of reported data breaches in 2024, surpassing the finance and technology sectors.
• The number of healthcare breaches increased significantly due to ransomware attacks and third-party vendor vulnerabilities.
• The average cost per breach in healthcare was nearly double that of financial institutions, reflecting the long-term impact of compromised medical data.
• Attackers are increasingly targeting patient records, knowing that medical data remains useful for identity fraud long after a breach.

This trend signals a major wake-up call for healthcare decision-makers: cybercriminals are no longer just after financial data—they want medical records, and they’re succeeding in getting them.

Why Healthcare Data Is Worth More Than Credit Cards

A data breach in the healthcare industry is far more valuable to hackers than financial data theft. Here’s why:

• Healthcare data is permanent: Unlike credit card information, which can be changed, medical records and Social Security numbers remain unchanged.
• Multiple fraud opportunities: Hackers use stolen healthcare data for insurance fraud, identity theft, and blackmail.
• Dark web demand: Stolen electronic health records are bought and sold on the dark web, sometimes bundled with other countries’ medical data for global fraud schemes.

How Cybercriminals Exploit Stolen Healthcare Data

Hackers leverage healthcare breaches in several ways, including:

1. Medical Identity Theft – Fraudsters use compromised patient records to obtain prescriptions or medical treatments.
2. Fake Insurance Claims – Cybercriminals file false health insurance claims using stolen health information.
3. Extortion & Blackmail – Hackers threaten to expose private medical records unless healthcare providers or affected individuals pay a ransom.
4. Dark Web Sales – Stolen data is sold in bulk on the dark web, fueling global fraud networks.

The Growing Risk of Healthcare Cyberattacks

Healthcare organizations have become one of the most targeted industries for cybercrime, with ransomware attacks and phishing scams leading the way. According to IBM’s 2023 Cost of a Data Breach Report, the average cost of a healthcare data breach hit $10.93 million per incident—the highest of any sector.

Recent High-Profile Healthcare Breaches

• Anthem (2015): 78.8 million patient records stolen.
• Premera Blue Cross (2015): 11 million records compromised.
• Change Healthcare (2023): Ransomware attack disrupted billing for hospitals nationwide.

As attacks become more sophisticated, healthcare providers must take urgent action to strengthen cybersecurity defenses.

How Hackers Infiltrate Healthcare Systems

1. Ransomware Attacks on Network Servers

Ransomware attackers target network servers in hospitals, encrypting patient records and demanding payment to restore access. Recent attacks, such as the Change Healthcare ransomware attack, have severely disrupted patient care and billing systems.

2. Phishing Attacks & Stolen Credentials

Cybercriminals send fraudulent emails to healthcare employees, tricking them into revealing login credentials. These stolen credentials grant hackers unauthorized access to electronic health records and third-party vendor systems.

3. Third-Party Data Breaches

Many healthcare organizations rely on third-party providers and business associates for data storage and processing. However, a third-party data breach can expose vast amounts of healthcare data.

4. Weak Cybersecurity Measures

Outdated software, poor encryption, and lack of security experts make many healthcare organizations easy targets.

How Healthcare Organizations Can Strengthen Security

1. Strengthen Authentication & Access Controls

• Require multi-factor authentication for all systems.
• Restrict access to sensitive healthcare data based on job roles.

2. Train Employees to Recognize Cyber Threats

• Conduct ongoing cybersecurity training for staff.
• Simulate phishing attacks to test employee awareness.

3. Encrypt & Secure Data on Network Servers

• Ensure all data involved in healthcare transactions is encrypted.
• Regularly review security measures and apply necessary updates.

4. Monitor for Suspicious Activity

• Use AI-driven security tools to detect suspicious activity in healthcare networks.
• Implement 24/7 data analysis to track unauthorized access attempts.

5. Respond Quickly to Data Breaches

• Investigate all security incidents immediately.
• Offer free credit monitoring and identity protection services to affected individuals.

6. Ensure HIPAA & Regulatory Compliance

• Regularly review policies to stay compliant with the HIPAA Journal and Health Insurance Portability and Accountability Act (HIPAA) guidelines.
• Work closely with the Office for Civil Rights (OCR) to prevent regulatory fines.

The Healthcare Industry Must Act Now

With healthcare breaches outpacing other sectors, cybercriminals are making millions by exploiting vulnerabilities in healthcare organizations. The cost of inaction is too high—ranging from financial penalties to disruptions in patient care.

What’s Next?

• Healthcare providers must investigate and upgrade their security measures.
• Business associates and third-party vendors need to tighten data protection policies.
• Affected individuals should regularly check their credit reports and sign up for identity protection services.

The question isn’t if your organization will face a data breach—it’s when. The healthcare sector must respond proactively before the next major cyberattack strikes.

Are your systems ready? Schedule a security consultation with Sirius Office Solutions today and safeguard your healthcare organization before it’s too late.