Data Loss Prevention in Healthcare: Why Cybercriminals Target Medical Records and How to Stop Them

"Because That’s Where the Money Is"

Willie Sutton, the infamous bank robber, was once asked why he targeted banks. His response? “Because that’s where the money is.”

While Sutton may have been referring to physical cash, cybercriminals today have a similar mindset—except their treasure trove isn’t in vaults; it’s in your healthcare records. The modern digital gold rush isn’t after credit card numbers or Social Security details alone; it’s after Protected Health Information (PHI), which can sell for $500 to $1,000 per record on the dark web, compared to just a few dollars for a stolen credit card.

Healthcare data is an attractive target because it contains everything needed for identity theft, insurance fraud, and even medical blackmail. And yet, many healthcare organizations still rely on outdated security measures, making them low-hanging fruit for cybercriminals.

So, what can be done to prevent data loss? The answer lies in Zero Trust principles and modern Data Loss Prevention (DLP) solutions like those from Zscaler.

The Growing Threat to Healthcare Data

Why Are Healthcare Organizations Prime Targets?

Healthcare organizations handle a vast amount of sensitive data—names, birthdates, insurance details, medical histories, prescriptions, and billing information. Unlike financial fraud, where a stolen credit card can be quickly canceled, healthcare fraud is insidious, often going undetected for months or even years.

Key risks include:

• Ransomware Attacks – Cybercriminals lock down hospital systems and demand ransom payments, knowing that healthcare providers can't afford downtime.
• Medical Identity Theft – Fraudsters use stolen PHI to file false insurance claims, obtain prescriptions, or even receive medical treatment under another person's name.
• Regulatory Fines and Reputational Damage – A breach could result in millions of dollars in HIPAA fines, lawsuits, and lost trust from patients.

In 2023 alone, over 725 healthcare breaches were reported, exposing more than 133 million records. The Change Healthcare breach in 2024 affected nearly one-third of the U.S. population. These staggering numbers highlight why cybersecurity must be a top priority for every healthcare executive.

How Zero Trust and DLP Can Prevent Data Loss

1. Adopt a Zero Trust Architecture

Traditional security models assume that once inside the network, users and devices can be trusted. But modern cyber threats—whether from malicious insiders or external attackers—require a never trust, always verify approach.

Zero Trust principles include:

• Least Privilege Access – Only authorized personnel should access PHI, and only when necessary.
• Microsegmentation – Restrict lateral movement within a network so an attacker can’t jump from one compromised system to another.
• Continuous Verification – Every access request is verified in real-time based on identity, device security posture, and behavior.

With Zero Trust, even if credentials are stolen, they become significantly harder for attackers to exploit.

2. Implement a Robust Data Loss Prevention (DLP) Strategy

A strong DLP solution ensures that sensitive data doesn’t leave the organization unintentionally or fall into the wrong hands.

Key features of Zscaler Data Protection:

• Cloud-native DLP: Protects sensitive data across endpoints, applications, and cloud services.
• Inline Data Inspection: Identifies and classifies sensitive information in real-time, blocking unauthorized transfers.
• Policy-based Controls: Prevents the sharing of PHI through email, web uploads, or shadow IT applications.

By combining Zero Trust and DLP, healthcare organizations can reduce the risk of accidental and intentional data leaks while maintaining compliance with regulations like HIPAA.

Best Practices for Strengthening Healthcare Data Security

1. Encrypt and Monitor Data

• Encrypt data at rest and in transit to prevent unauthorized access.
• Use data classification to label and protect sensitive information.

2. Secure Access to Cloud Applications

• Implement multi-factor authentication (MFA) to ensure only authorized users can access PHI.
• Deploy cloud security posture management (CSPM) to identify misconfigurations.

3. Conduct Regular Security Training

• Train employees on phishing attacks, social engineering, and proper data handling.
• Simulated phishing exercises can reduce click rates on malicious links by up to 90% over time.

4. Implement AI-driven Threat Detection

• Use machine learning-based threat detection to identify unusual access patterns.
• Deploy automated responses to isolate compromised accounts before damage occurs.

Conclusion: Healthcare Security is No Longer Optional

Cybercriminals have made it clear: healthcare is where the money is. But with Zero Trust security and Zscaler’s Data Protection solutions, healthcare organizations can significantly reduce their attack surface and protect sensitive patient data from being exploited.

If you’re serious about securing your healthcare data, it’s time to take action.

👉 Download Zscaler’s Data Loss Prevention eBook to learn more about how to secure your organization today!