Cyberattacks Are Putting Patients at Risk. Is Your Practice Prepared? 

Modern technology moves at an incredibly fast pace, and it’s important – if not critical – that healthcare providers are able to keep up with evolving technology and changing trends. The consequences of inaction can be severe and have significant impacts for providers and their clients. 

Understanding these risks and the unique vulnerabilities faced by the industry can help to combat cyberattacks and maintain patient care, safety and trust. 

The consequences of surging cyberattacks for healthcare providers 

In recent years, cyberattacks targeting healthcare systems have dramatically increased in volume and severity. As providers become increasingly reliant on digital tools for patient care, the stakes have never been higher.  

On a global scale, Australia is in the top 10 of countries most impacted by cyber extortion attacks in 2024 according to research from CyberX.  

The CyberCX data shows that the healthcare sector makes up 8% of total cyberattacks in Australia and New Zealand. However, it’s not large hospitals that cybercriminals are going after – it’s non-hospital clinical providers. These specialist providers suffer almost 10 times the number of publicly claimed attacks compared to hospitals, which are the next most targeted sub-sector. 

Further to this, research from IBM found that healthcare providers suffer the highest cost for data breaches of any industry globally, averaging USD $9.8 million per incident. This is more than 1.5 times the average cost to financial service industry organisations. 

But the consequences of a cyberattack for healthcare providers are not just financial. They can be potentially life-threatening for the patients who rely on their expert care.  

What does “tech resilience” mean? 

Tech resilience in healthcare refers to the system’s ability to prevent, detect, withstand and recover from technology-related disruptions – whether they’re caused by cyberattacks, system failures or even natural disasters. A resilient healthcare system ensures that critical services remain accessible and functional, even during a crisis. 

This resilience covers both operational and technical approaches. It involves strong cybersecurity measures, backup systems and proactive incident response plans to minimise downtime and maintain continuity of care.  

Challenges in achieving tech resilience for healthcare providers 

There are a number of rising threats in the healthcare industry that may present challenges in achieving tech resilience. Having a better understanding of these obstacles can help healthcare providers find different ways to work around them. 

Tech debt 

As more healthcare services move online, many organisations that aren’t fully prepared for cyber threats are building up “tech debt”. An organisation may find itself in tech debt for a number of reasons: 

• Limited budgets or IT resources could prevent the organisation from investing in new technology. 

• A lack of understanding around cybersecurity and could lead to a culture that does not place importance on modern technology.  

• Instead of fully replacing an older system, IT teams may find temporary fixes and workarounds. Over time, this could lead to fragile systems held together by Band-Aid solutions.  

• Using a mix of external vendors for different digital services (e.g., billing, diagnostics, patient portals) without a unified strategy can create a fragmented IT environment. This makes it hard to monitor, secure or update systems consistently. 

AI cyberattacks 

AI cyberattacks are becoming an increasing problem for all industries, especially healthcare. The accessibility of AI means that it’s easier than ever for threat actors to use AI to increase the scale and realism of social engineering attacks.  

Frontline health staff may be particularly vulnerable to AI-enabled social engineering attacks, given that they are already under pressure from the physically and mentally demanding job of maintaining patient care.  

Third-party supplier attacks 

Third-party supply chain cyberattacks are not new, but they are becoming increasingly common as cybercriminals target vulnerable vendors to cast a wide net and maximise their reach and profitability.  

A key trend observed in the CyberCX report is the increasing scale and impact of cyberattacks against third party providers in the healthcare industry. 

This is creating added pressure on providers to understand, assess and manage their cyber risk in the supply chain. You can learn how to better manage vendor risk in our blog, “What is vendor risk and why is it important?” 

Integrating tech resilience 

Building tech resilience is essential for healthcare providers looking to deliver consistent, secure and high-quality care in an increasingly digital world. And as we touched on before, creating true resilience goes beyond IT and requires coordinated action across both technical systems and day-to-day operations. 

Strengthening IT infrastructures 

Legacy systems can be a cyber incident just waiting to happen. Older hardware and software systems often feature outdated security protocols and are incompatible with newer technologies, making them easy targets for hackers.  

Healthcare providers can strengthen IT infrastructures by upgrading old legacy systems and ensuring that hardware and software are regularly maintained and patched.  

Enhancing staff training and awareness 

According to the Office of the Australian Information Commissioner (OAIC), human errors accounted for 30% of all data breaches in the first half of 2024.  

By training staff to recognise phishing attempts, using secure login practices and following data protection protocols, healthcare providers can create an educated culture of cybersecurity awareness. 

Developing a cyber incident response plan 

A cyber incident response plan (CIRP) is a clearly defined proactive strategy that outlines the steps an organisation needs to take to detect, respond to, contain and recover from a cybersecurity incident. It should involve both technical response protocols and communication plans for staff, patients and regulatory bodies. 

The purpose of a healthcare cyber incident response plan is to minimise the damage of a cybersecurity breach, reduce downtime, ensure compliance with legal obligations and ensure that patient care is still maintained. 

Investing in Cyber Liability insurance 

Many healthcare providers choose to take out Cyber Liability insurance just in case the worst should happen.  

Cyber Liability insurance is designed to help protect businesses from claims and support profitability in the event of a cyber breach or attack. Costs associated with defending a cyber claim are also covered. Examples of the types of risks Cyber Liability insurance can assist with are unintended loss or release of customer personal information, cyber crime, cyber extortion/ransomware and business interruption due to a cyber event. 

This support can be critical in allowing healthcare providers to protect their reputation and continue delivering patient care with minimal disruption. 

Get multiple quotes in minutes from some of Australia’s leading insurance providers and find the cover that fits your needs. For on the go cover, go BizCover.