Across the globe, organizations have become increasingly concerned about the threat posed by cybercriminals syndicates, leading many system administrators to invest heavily in data security solutions. One of the sectors most at risk for a devastating data breach is the healthcare industry. In addition to the volumes of personal data and financial records stored on hospital servers, medical identification information presents a lucrative target for hackers looking to increase the financial gains of their criminal endeavors.

As HackSurfer contributor Rachel Ark noted, medical IDs offer a various avenues for cybercriminals to profit from their theft.

"Medical IDs are big-ticket items for false insurance claims or as a method to secure prescription drugs under a different identity," she wrote. "But, it doesn't stop there. Once someone steals your medical ID and uses it to obtain prescription drugs, that prescription is on your record, which could mean a potential threat to your health long-term, since medical professionals dealing with your case will think you were the one responsible for consuming those medications."

The high cost of a data breach
From a hospital's standpoint, the threat of their patients' sensitive data can have far-reaching effects. For instance, an especially severe data breach can create a public relations nightmare and lead to widespread erosion of public trust regarding an administration's adherence to data security. The fallout from such a scenario could result in community members opting to seek treatment at another facility. Furthermore, after falling victim to a cybersecurity breach, hospital personnel may find that the security measures they have in place are insufficient and in violation of federal regulations, such as those outlined in the Healthcare Insurance Portability and Accountability Act. Failure to comply with these guidelines can result in significant fines.

According to Health IT Security's Patrick Ouellette, medical personnel should strongly consider deploying encryption measures to secure their data, even under tight budgetary conditions.

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Centers for Medicare & Medicaid Services (CMS) handles billions of files containing private health information.

"When comparing encryption pricing and budgetary constraints to the types of heavy fines organizations face for an unencrypted device being breached, it's difficult to see the logic in not encrypting data on physical devices," he wrote.

The cost of doing nothing far outweighs the initial investment in a comprehensive data encryption software package. The proliferation of electronic health records has only increased the need for medical personnel to secure sensitive information at all levels. As more physicians are able to easily share crucial patient information over connected networks, they will require a data encryption solution that protects files both at rest and in transit.