Hackers to focus on hospitals in 2017

Hackers will target the health care sector above all others in 2017, with their focus shifting from insurers to hospitals, predicts Experian® Data Breach Resolution. The company’s fourth annual Data Breach Industry Forecast also indicates that ransomware will be an increased threat to hospitals. It suggests that “nation-state” cyberattacks will increase, with at least one significant incident in 2017, and that passwords will be phased out in favor of two-factor authentication.

Hospital focus

In 2015, four of the six data breaches reported to the HHS Office for Civil Rights (OCR) affecting more than one million individuals targeted health care insurance companies.  As a result, Michael Bruemmer, vice president of Experian Data Breach Resolution, noted that many insurers “doubled down on defenses.” Protected health information (PHI) remains a lucrative source of data for hackers, but the report suggests that hackers will seek this information from hospitals, in lieu of insurers, in 2017. Bruemmer noted that hospitals “tend to be more decentralized, making their cybersecurity defenses easier to penetrate.” Electronic health records (EHRs), in particular, are targeted because they are accessible by various entities and individuals. The report predicts that ransomware–which encrypts data, effectively preventing providers from using data unless they pay a ransom–will increase, and may shift from simply locking systems in exchange for money to actually stealing data. At any rate, recent OCR guidance on ransomware makes it likely to be a more publicized topic in 2017 (see Data for ransom: OCR offers ransomware guidance).

Nation-state attacks

The report also anticipates an escalation in cyberattacks between nation-states in 2017, noting that both U.S. presidential candidates discussed the issue in 2016. Although Bruemmer noted in December that the incoming Trump administration’s cyberweapons policy is unclear, he anticipates “a publicly observable action in the near future” and thus recommends that the administration “shor[e] up its defense mechanisms and identify[ ] vulnerabilities.”  Amidst heated discussions on both sides regarding Russia’s alleged interference with the recent U.S. presidential election, President-elect Trump appointed Thomas P. Bossert as Assistant to the President for Homeland Security and Counterterrorism. Bossert indicated, “We must work toward cyber doctrine that reflects the wisdom of free markets, private competition and the important but limited role of government,” and noted, “The internet is a U.S. invention,” that should reflect the nation’s values “as it continues to transform the future for all nations and all generations.”  The president-elect, recently reflecting on cybersecurity, noted “no computer is safe.”

Death of the password?

The report also predicts that individual passwords will be phased out, in all industries, in favor of two-factor authentication, which requires secondary authentication to allow access to systems and networks.  It lists tokens, geo location confirmation, and biometrics as examples of secondary authentication. Individuals’ use of the same passwords for various accounts can lead to “aftershock” breaches, which occur when a password compromised in one breach is used to break into another network in the future.  Experian Data Breach Resolution suggests that health care organizations will be forced to use two-factor authentication to protect against aftershocks.