The HIPAA Privacy Rule (Health Insurance Portability and Accountability Act of 1996) is a healthcare cybersecurity framework that mandates security standards for all HIPAA-covered entities. HIPAA aims to protect patient information in the public health sector and promote stronger cybersecurity policies. HIPAA standards have since been adopted worldwide and enforced as federal law in the United States.

Over the years, there have been countless cases of HIPAA (Health Insurance Portability and Accountability Act) violations, which can result in significant financial penalties. Most are directly linked not to accidental employee misconduct or malicious intent but to a lack of understanding of HIPAA standards by healthcare organizations. Most cases involve poor implementation of security controls or lack of risk assessment auditing, to save money and avoid costly auditing.

‍Plex was breached by an unauthorized third-party gained who gained access to a proprietary database. The specific attack vector that facilitated the breach hasn’t been disclosed. According to Plex, cybercriminals “tunneled” their way through sophisticated cybersecurity mechanisms to gain access to sensitive customer data.

The CashApp data breach was caused by a former employee who accessed customer financial reports as an act of revenge against the company after their employment was terminated. According to the April 2, 2022 filing with the Securities Exchange Commission by Block (CashApp’s parent company), the employee required access to the financial reports as part of their daily duties.

HIPAA compliance is regulated by the Department of Health and Human Services (HHS) and enforced by the Office for Civil Rights (OCR). In 2013, the final Omnibus rule was enacted, binding business associates - or third-party vendors - to the Health Insurance Portability and Accountability Act. This modification added another level of compliance complexity to an industry not accustomed to operating in the cybersecurity domain - the healthcare industry.