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Why the healthcare industry is a common victim of data breaches and how an identity protection benefit can help

By Allstate Identity Protection

In this article, we’ll provide an overview of the state of attacks on the healthcare industry, why this industry is a common victim of data breaches, and how an identity protection benefit can help protect organizations, employees, and patients from the main causes of data breaches.  

For cybercriminals, there are several industries that make attractive targets for cyberattacks. Whether it’s financial service providers, manufacturers, or simply an organization that doesn’t have the right security measures, hackers and scammers are always on the lookout for targets from which they can steal money or data.   

However, there is one industry in particular that is frequently targeted by cybercriminals: healthcare. With access to a treasure trove of sensitive data and their role in providing essential care to patients, healthcare companies frequently experience a range of cyberattacks and data breaches—as well as medical identity fraud, which can be extremely costly for both patients and organizations. 

And while precautions like cybersecurity solutions are essential for protecting organizations, their employees, and their patients from data breaches and medical identity fraud, there’s another powerful tool organizations can use in this fight: an identity protection benefit.   

The healthcare industry is under attack 

Although data breaches affect companies in every industry, the healthcare industry is particularly vulnerable to data breaches—and the problem is only getting worse. The healthcare industry was the second-most compromised sector in the first half of 2025, with data breaches impacting over 16 million individuals.  

Healthcare providers also reported 283 breaches from January 2025 to June 2025, resulting in over 16,600,000 victim notices. And with the healthcare industry being the most expensive industry for data breaches at an average of $7.42 million per breach, these data breaches can be devastating to healthcare organizations’ bottom lines.  

However, expensive data breaches aren’t all the healthcare industry has to worry about. The healthcare industry also frequently experiences medical identity fraud (defined as an unauthorized person using another individual's personal health information to obtain medical services, prescription drugs, or file fraudulent insurance claims) as a result of these data breaches. In 2024 alone, there were over 10,000 reports of medical identity theft, and studies have estimated that medical identity theft costs the healthcare industry upwards of $30 billion each year.   

Why the healthcare industry is a target for data breaches 

Although different types of data are valuable to cybercriminals, medical records are particularly attractive to those looking for a payday as they can be used for a number of illegal purposes.  

Medical records and confidential medical information often contain detailed personally identifiable information (PII) like Social Security numbers, addresses, phone numbers, and more. Hackers can use these medical records and data as a foundation for other crimes, such as identity theft, blackmail, phishing scams, and more.  

One of the primary ways cybercriminals make money off stolen medical records and data is by selling it on the dark web. A complete medical record can sell for over $500, and if a hacker or scammer can get a hold of thousands or even millions of these records, they can make a staggering amount of money.  

Once these records are sold, they can be used in medical identity fraud. In these cases, someone will purchase the medical record and then use it to fraudulently receive medical care like surgeries. They can also use the stolen medical record to illegally receive prescription drugs. And this can not only cost victims an average of $13,500, but it can also make it difficult for them to receive important medical care.   

How an identity protection benefit can support healthcare employees 

In healthcare, protecting sensitive data isn’t just a regulatory requirement, it’s a matter of trust. The first step in safeguarding both patients and employees is understanding how data breaches happen and what proactive steps your organization can take to reduce risk.  

While technical infrastructure and compliance protocols are essential, an identity protection benefit can add a critical layer of defense by empowering healthcare employees to protect their own digital identities. This, in turn, helps prevent breaches that often begin with compromised credentials or human error.  

Here’s how key features of an identity protection benefit work to reduce risk:  

  • Dark web monitoring: With the ability to see if their personal or work credentials have been exposed on the dark web, employees can change them before bad actors have the opportunity to use them in a cyberattack. 

  • Automatic data removal: Having a feature that automatically monitors data broker sites for employee information and removes it helps to minimize the risk of having their information leaked if a data broker experiences a data breach.  

  • Digital footprint management: By giving employees the ability to better manage what information organizations and data brokers have access to like emails and web traffic, you can reduce the likelihood that this information is exposed in data breaches.  

  • Continued education: A quality identity protection benefit will provide members with educational resources on how to keep their data safe and updates on the latest tactics scammers are using, helping prevent data breaches before they happen.  

 By showing employees how to protect themselves, your organization strengthens its overall security posture, creating a culture of awareness and resilience. 

To learn more about how an identity protection benefit can help, stay up to date with our Business Hub or reach out to our team.

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