Why Are Your Medical Records Worth 50x More Than Your Credit Card on the Dark Web?

Blog Commentary:

According to the Department of Health and Human Services, healthcare data breaches affected over 112 million patient records in 2023 alone, representing a 35% increase from the previous year. Electronic Health Records (EHRs), telemedicine platforms, connected medical devices, and healthcare apps have revolutionized patient care, but they’ve also created unprecedented security challenges. The ramifications extend far beyond regulatory penalties—they impact patient trust, clinical operations, and even patient safety. This blog explores the critical risk factors associated with healthcare data security and examines strategies to mitigate these evolving threats.

Why Are Health Records So Valuable on the Dark Web?

The dark web is a part of the internet that isn’t indexed by search engines like Google. It requires special software, like Tor (The Onion Router), to access. It’s not inherently illegal, but it’s often used for anonymous communication and transactions, which makes it a hub for illicit activity.

Healthcare data represents a perfect storm of valuable information. Unlike credit card information, which has a limited useful lifespan once stolen, medical records contain permanent identifiers and comprehensive personal details that can be exploited for years. Healthcare organizations present attractive targets as depicted below.

• Rich in Personal Information: Medical records contain full names, birthdates, Social Security Numbers, addresses, insurance details, and sometimes payment data—a goldmine for identity thieves.
• Longer Shelf Life: Unlike credit cards (which can be canceled), medical history and personal details are permanent, making the data more useful for long-term fraud.
• Legacy Systems: Many facilities operate technology that is decades old, often running outdated and unsupported operating systems.
• Slower to Detect: The average time to detect a healthcare breach is significantly longer than in other industries. That gives attackers more time to profit undetected.
• Budget Constraints: Healthcare entities often find it hard to balance clinical equipment requirements with the required security infrastructure.
• Complex Environments: The typical hospital network connects thousands of devices from hundreds of vendors, creating an enormous attack surface.
• 24/7 Operations: Unlike other industries, healthcare facilities cannot simply shut down for security updates.

Medical records are worth up to 50 times more than credit card information on the black market. They contain everything a criminal needs for identity theft, insurance fraud, and targeted phishing campaigns, says Reuters. The healthcare sector is a prime target for cyberattacks due to the sensitive nature of patient data and the potential for disruption of critical services. Organizations must prioritize cybersecurity investments and implement robust security measures to protect patient information and maintain operational resilience.

Risk Factors Associated With Healthcare Data Security

While the value of healthcare data makes it a prime target, it’s the industry’s systemic weaknesses that heighten its risk. The real danger lies in the combination of high-value data and systemic weaknesses across technology, people, and processes. Below are the key elements that continue to expose the industry to frequent and costly security incidents.

• Ransomware and Targeted Attacks: Healthcare organizations face relentless cyber threats, including ransomware, phishing, and malware attacks. The 2023 Verizon Data Breach Investigations Report (DBIR) found that 45% of all breaches in healthcare were due to hacking, with ransomware being a leading cause. These attacks are increasingly sophisticated, with threat actors conducting thorough reconnaissance before launching carefully targeted campaigns. The consequences are dire. Research from the University of California, San Diego revealed that ransomware attacks on hospitals create a ripple effect, where nearby facilities experience a spike in patient load. This increase in strain was linked to an 81% rise in cardiac arrest cases, along with a noticeable decline in survival rates.
• Insider Threats and Human Error: While external hackers grab headlines, insider threats remain one of the most significant risks to healthcare data security. These threats take various forms, such as malicious insiders who deliberately misuse access, negligent staff who fall for phishing scams, and employees lacking proper cybersecurity training. The 2023 Verizon Data Breach Investigations Report found that 39% of healthcare security incidents involved internal actors, significantly higher than the cross-industry average of 25%, highlighting the need for stricter access controls and employee training.
• Third-Party and Supply Chain Vulnerabilities: Modern healthcare delivery involves numerous third-party vendors, each representing a potential security risk. From billing companies to cloud service providers to medical device manufacturers, these partners often have access to sensitive data or critical systems. According to the HIPAA journal, approximately 55% of healthcare organizations experienced third-party breaches in 2022. Attackers exploit insecure external-facing servers, weak passwords, and inadequate access controls to infiltrate networks. They also exploit weak security requirements in vendor contracts, poor vendor risk management, limited visibility into downstream vendors, and inadequate safeguards in connected medical devices.
• Lack of Encryption & Data Masking: Despite encryption and masking being fundamental security controls and HIPAA requirements, many healthcare organizations implement them inconsistently or inadequately. Masking isn’t a ‘nice-to-have’—it’s the last line of defense when other security controls fail. Unfortunately, many organizations implement it as a checkbox compliance measure rather than a comprehensive data protection strategy. Key issues include unencrypted data at rest—such as patient records and backups—alongside weak or outdated encryption standards that can’t withstand modern threats. Poor encryption key management, limited use of data masking in non-production environments, and gaps where data is exposed during processing or transmission further compound the risk.
• Outdated IT Infrastructure & Legacy Systems: Healthcare organizations frequently operate with technology infrastructure that lags years or even decades behind other industries. These outdated platforms are often incompatible with modern security tools, making it difficult to apply current protections. Additionally, specialized medical equipment frequently runs proprietary software that can’t be easily patched or upgraded. Integration challenges further complicate the situation, as connecting legacy applications with modern security solutions often introduces compatibility issues and operational risks.
• Cloud Security Challenges and Data Hoarding: As healthcare rapidly adopts cloud infrastructure, many organizations struggle to manage the associated security risks. Misconfigurations, shared responsibility confusion, and fragmented multi-cloud setups have led to over 30 million exposed records in 2023 alone. Additionally, data hoarding remains a major concern. Studies revealed that 78% of patient data is stored beyond its required lifespan, with 42% retained for over 30 years—expanding the attack surface, increasing compliance risks, and inflating storage costs.

Bottom Line

Organizations that prioritize security as a foundational element of their digital transformation rather than an afterthought will be better positioned to protect patient data while leveraging technology to improve care. As healthcare continues its digital evolution, security must evolve alongside it—not just to meet compliance requirements, but as an essential component of the patient care mission.

Learn more:

Blog: The $10.93M Problem: How to Protect Healthcare Data

Beyond the surface of HIPAA lies a $10.93M risk. Equip your healthcare organization with the essential knowledge to proactively protect sensitive data, understand the Challenges of Healthcare Data Security, and ensure you’re always audit-ready. Don’t risk the penalty—read the blog now!