Top 3 Healthcare Cybersecurity Challenges | Intellectsoft Blog

August 25, 2023

Cybercrime keeps running rampant, targeting individuals and critical infrastructure alike. According to the latest FBI’s IC3 report, phishing, personal data breach, and extortion have been the most common cybercrime types over the last five years.

Hackers target confidential data because they profit from selling it. In 2022, the FBI registered a daunting amount of losses caused to US citizens and businesses by cybercrime activities: $10.3 billion. To put this in perspective, this sum was about 3.5 times lower in 2018 – $2.7 billion. Even more, in 2021, the losses were $6.8 billion, meaning they have grown by one-third over a year.

Source: The IC3 report 2022

According to the same report, the healthcare industry is the most common victim of cyber attacks. This industry has the perfect combination of valuable data and glaring security issues making it a gold mine for hackers. So why do healthcare institutions lose data (and money), despite strict security regulations, HIPAA guidelines, and other government-enforced measures? Let’s find out.

Why is Cybersecurity Important in Healthcare?

There are several reasons why there are so many cybersecurity threats in healthcare. Any confidential data can be used as leverage or for many criminal purposes, like extortion, identity theft, fraud, and much more. That is why such information is highly lucrative and draws a lot of hackers’ attention.

The healthcare industry deals with an enormous amount of private data on a daily basis. Digital technologies brought many benefits to the workflow in hospitals, most notably reducing the paperwork and organizing health records. Unfortunately, the same technologies created a lot of cybersecurity issues in healthcare. They allow criminals to steal and tamper with health-related data while keeping a low profile in a remote location, possibly from the other side of the world.

So, the healthcare industry had to acknowledge the vital role of cybersecurity and implement numerous measures to predict and fend off attacks. The government introduces and enforces many security regulations and standards that are mandatory. On their part, healthcare service providers usually implement additional security measures to further protect their businesses, clients, and related data.

Every data leak that occurs in a medical institution is a potential collective lawsuit from hundreds or thousands of patients. Such a lawsuit may ruin the reputation of the healthcare service provider and can easily destroy its future as a business enterprise. It also involves a huge fine which can be the final blow to the healthcare organization since many clinics and hospitals are already poorly funded.

So, healthcare cybersecurity threats target persons and businesses, bringing potential reputational and financial damage. On a larger scale, they can also disrupt the workflows in one of the most vital systems of a state: the public health system. From this perspective, considering the utmost importance of the problem, developing effective solutions to healthcare cybersecurity challenges is a matter of national security.

Top 3 Cybersecurity Issues in Healthcare Industry

There are dozens of security threat types. However, there are three main reasons why cyber attacks are successful.

1. Outdated Computer Systems

Though some people prefer the term “legacy systems,” they are just sugarcoating the problem. Due to budget cuts, some hospitals have to use decade-old computer equipment and software.

First, it’s ineffective in terms of performance and power efficiency. More importantly, its creators abandon old software after it reaches the “lifetime” threshold. For instance, about 15% of computers worldwide used Windows 7 and 8 during 2022, which has recently dropped to about 4%. This is despite those systems having had no security updates since January 2020 (or January 2023, in the case of the Extended Security Updates program).

The “it's old, but it works” attitude is a massive threat to cybersecurity, especially in healthcare. Eventually, you have to part with some money for upgrades and new computers. Recycle old junk.

2. Phishing Attacks Are Getting More Sophisticated

The worst part is that attacks are getting smarter, but people remain the same. One of the main threats to healthcare cybersecurity is the human factor.

Even after graduation, doctors must continue learning about new threats, cures, and practices. Sadly, the same approach is not as common in cybersecurity in healthcare. Every healthcare worker who has access to patients’ confidential information can become a potential intermediary for a data breach. Lack of security awareness, understaffing, and budget cuts are the weak points that ensure the success of hacker attacks.

Hackers constantly improve their methods and use new technologies. One of the most recent examples is using artificial intelligence to enhance their tools. For example, it can easily create compelling texts for phishing and other scams. Modern AI chatbots lack many basic security kill switches. The lack of control over AI and its potential use to assist criminal activities has raised much concern. It was expressed in the recent open letter signed by prominent digital technology scientists and entrepreneurs.

3. The Growing Scale of Botnets and Ransomware

Modern botnets amass enough technical capabilities to execute DDoS attacks. Besides, botnets distribute malware that leads to data breaches and further expands them.

During the COVID pandemic, massive hacker attacks targeted research facilities, vaccine manufacturers, hospitals, and even the World Health Organization and the HHS. Some of those attacks were successful and led to drastic results. Data was stolen or lost, surgeries were postponed, hospital operations were compromised, and many lives were endangered.

According to the IC3 report, in 2022, Healthcare and Public Health infrastructure was the primary victim of ransomware. Another FBI report highlights massive attacks on healthcare payment processors in the same year. There is enough evidence to believe that the situation will remain grim with a slim chance of improvement.

How to Overcome the Main Challenges in Healthcare Cybersecurity?

Is there anything we can do about healthcare cybersecurity challenges? Yes, but the necessary measures require a lot of money and effort.

Upgrade Equipment

Even if your old computers and servers are still in operating state, it does not mean they remain effective. At some point, equipment is no longer able to meet the growing requirements of security software. Get hardware that supports modern security protocols, encryption methods, etc. Not only will you reach a higher level of security, but also you will get a much more energy-effective infrastructure. This way, a higher performance-per-Watt ratio of modern equipment will save you money, so you will be able to improve your business, including its security, even further.

Update Software

The same principle applies to software products implemented in healthcare computer systems. Old versions of anti-viruses, firewalls, antimalware, and other security solutions are usually discontinued and no longer updated by their creators. In fact, this leads to one of the most common and dangerous cybersecurity threats in healthcare. You have the illusion of being protected, but your systems have no real protection because old security software cannot deal with modern types of attacks. Buy new licenses and enforce automatic updates. No product is perfect, so let developers patch their software.

Train Staff

Employees have to learn how to handle new hardware and software. But they must also learn how to detect and ward off potential threats. Minimizing the impact of a human factor is essential for fighting cybercrime. These days, learning “digital hygiene” is as essential as learning basic health and safety rules. Trained personnel who know how to avoid and respond to most common computer-related threats, such as unsafe passwords or phishing emails, are vital not only to healthcare cybersecurity but to all industries that have integrated digital technologies into their workflows.

Implement Constant Security Monitoring and Regular Checkups

Usually, modern healthcare institutions have a complex computer infrastructure with dozens of workstations and at least one server located on-site or in the cloud. These numbers may vary for small clinics or large hospitals, but the essence remains the same: a computer system with all its components requires a lot of setup and maintenance to remain fully functional and secure. Depending on the scale, you will need one or a few system administrators and digital security specialists to monitor and protect your computer network. They should also select the best-fit antivirus, data backup, and system monitor software for your business based on your system specifications and other key factors.

Enforce Multi-Factor Authentication

Various levels of access, permission rules, and authentication are the staples of digital safety, including healthcare cybersecurity. They are crucial for remote operations but are also essential for on-site work. Multi-factor authentication is a relatively simple but effective defense mechanism. Do not neglect it. Restricting access to your computer network from outside is another commonly used method of securing data. Also, assigning different access levels to workers depending on their positions and duties in a company is an excellent measure that has proven its effectiveness in preventing data loss and other security threats.

Enable Encryption of Confidential Data

Patients’ files and login credentials are often kept in plain text form. Avoid it. You should implement encryption protocols to secure data during storage and communication. This way, even if hackers manage to steal information, it will be nearly impossible to decrypt it in the foreseeable future, even with state-of-the-art tools. Even if hackers have the determination and resources to crack properly protected information, it will likely become outdated and worthless by that time.

Adjust Network Infrastructure

Adopt the modular structure to minimize the losses. When one compartment is compromised in a submarine, it is shut off, but the boat remains operational. The same principle may be adjusted to a computer network in a healthcare institution. If one module or segment fails, the rest must keep working. This approach ensures the uninterrupted operation of computer systems in emergency situations, which is vital for healthcare cybersecurity.

Hire Professionals

This is the crucial step that ensures the effectiveness of all the aforementioned steps. You need the experience and skills of professionals to deal with the current and future healthcare cybersecurity challenges. That’s why you should hire a team of experts who will consult you, analyze your needs, develop an efficient healthcare cybersecurity solution, and integrate it seamlessly into your business infrastructure.

For example, Intellectsoft has a team of skilled specialists experienced in creating and implementing advanced healthcare IT solutions. We can provide you with a full range of consulting and software development services to protect your business against cybersecurity threats in healthcare.

The list can go on and on. Those steps are just the basics. Cybercriminals are raking in billions of dollars every year, so they will not give up any time soon. It’s up to us to protect our private information and defend critical infrastructure. And since most attacks are focused on the healthcare sector, it needs extra defensive measures and fast.

Conclusion

Only three healthcare cybersecurity challenges in 2023 may seem like not much, but any of them can cause irreversible damage to medical institutions, their medical staff, and, most important – patients. The growing scale of ransomware and botnets, together with AI-empowered and more sophisticated phishing schemes, require extra effort and quality from your entire digital infrastructure. Outdated legacy systems are more fragile compared to modern ones with blockchain-driven and microservice-based architecture. This is why your upgraded equipment should go hand-in-hand with updated healthcare software.

To make sure these cybersecurity challenges won’t interfere with your business and your patients, you need to make sure that all specialists creating or upgrading your software are reliable professionals.

Being a software development provider since 2007, we have built from scratch and upgraded dozens of healthcare systems and ecosystems of different types and complexity – MVP, ERP, CRM, patient portals, and many others. As a company with 15+ years of solid experience in the field of providing digital solutions for businesses, from startups to enterprises, we understand the importance of solid healthcare cybersecurity and the intensity of the consequences a minor data breach may cause to the client’s reputation.

We guarantee the highest quality of every finished project, and the fact that we have many recurring clients supports this statement. So, if you’re looking for a reliable team of professionals who will help you eliminate or overcome healthcare cybersecurity challenges, you’ve found it. Just get in touch with us and tell us what your business needs so that we can offer you the most effective and secure solution.

FAQ

I own a small clinic. Why should I spend my budget on cybersecurity?

If you want to avoid data leaks and subsequent lawsuits and fines, we recommend implementing at least a set of basic healthcare cybersecurity measures. Some hackers prefer attacking small companies because they are much easier targets than huge enterprises. And don’t forget that even the smallest healthcare business should follow the legal regulations regarding personal data. In other words, to run a business in the healthcare industry, it must be HIPAA-compliant in the USA, GDPR-compliant in the EU, PIPEDA-compliant in Canada, and so on.

How to improve cybersecurity in healthcare in a cost-efficient manner?

It depends on the size of your business and how lucrative your data may be for hackers. If you are a small healthcare service provider, start with a basic set of measures to fend off the most common types of attacks. Then build up your security as your profits grow, and you have more budget to spend. This approach will allow you to create an all-around defense and then enhance it by implementing more advanced solutions.

There are too many steps to overcome security challenges. Which one is the most effective?

All of them are effective in combination. If you implement a single step from the list, it won't be enough. The key to effective healthcare cybersecurity is to integrate all those steps in your business and make them work in unison. For this, you will need a team to analyze your business, design and build a software solution, implement it, and, optionally, perform post-release maintenance and staff training.

OK, I want to implement a healthcare cybersecurity solution in my healthcare business. How do I start?

You should start by contacting our managers. Here, at Intellectsoft, our experienced specialists will consult you, analyze your business, and suggest a custom software solution. When you discuss and finalize all the details, our development team will design, build, test, and deliver the final product with comprehensive documentation.

The hospitality industry depends a lot on keeping customers happy, but it’s getting harder to attract and keep them. The pandemic hit this industry hard, and now market competition is tougher than ever, with competitive offerings swaying customers. Hospitality businesses are willing to spend big to win customers back. The main questions for many are: how can we stay ahead of the competition, keep our customers, and increase revenue? Keep reading—we’ve got some answers.

Customers today have so many options that getting their attention is a real challenge. It’s not easy to make them choose your business over others. What worked 10 years ago doesn’t work the same way now. Back then, people often chose businesses based on reputation. But with new types of businesses (boutique hotels, craft cafes) popping up or big enterprises getting a new strategy, expectations have changed. The good news is these businesses have shown what works: great customer service. They focus on personalizing the experience, making things easy for customers, offering loyalty programs, and using smart technology.

In this article, we’ll explore these tech strategies and show you how they can help your business grow, and double the revenue. Keep reading to learn more!

The Importance of Customer Satisfaction in the Hospitality Industry

Customer satisfaction, which equals exceptional customer experience, is the backbone of the hospitality industry. It plays a central role in driving revenue and loyalty, as satisfied customers are more likely to return and recommend a hotel, restaurant, or other hospitality business to others. In fact, a study by the Harvard Business Review found that a 1% increase in customer satisfaction can lead to a 0.5% increase in revenue. Moreover, loyal customers are more likely to forgive mistakes and continue doing business with a company, even if they experience a negative encounter.

Let's quickly review the challenges the hospitality industry is facing right now so we can move on to the solutions and our case studies.

Challenges in Hospitality

As businesses navigate the changes in the hospitality industry, there are some key areas where a little improvement can go a long way. From improving customer service to embracing digital transformation and tackling labor shortages, we’ll take a closer look at today’s biggest challenges—and, more importantly, how technology can step in to help. Let’s get started!

Poor Customer Service

Even with strong and high-quality business offerings, poor customer service can drive potential customers and existing customers away. Common issues include:

Long wait times in customer service queues (it is worth remembering that our attention spans 8 seconds, and we live in a very busy world, so quick and efficient responses are more important than ever.)
Poorly trained customer service representatives
Lack of follow-up
Services not being done properly or quickly
Recall issues that require multiple service calls

These problems can frustrate customers. But, at Intellectsoft, we believe that the right approach, combined with technology, can address them effectively.

Digital Transformation Gaps

Approximately 50% of hotels are adopting new technologies, with 43% automating repetitive tasks and 39% upgrading existing systems.
Source: workstaff.app

Source: workstaff.app

While many businesses are adopting digital solutions, some still struggle with outdated systems and fragmented data. Legacy companies often face chaos when trying to manage their data and create new systems or add features.

Some of the recent examples include clients coming to us to create AI solutions for their services while their data simply was not ready for the advanced tasks. We advise stepping back, communicating with a company objective, and working on keeping the data clean (centralized, structured, and segmented).

When we’re asked to create advanced systems using AI, we always emphasize the importance of organized data. To train AI and build such complicated systems that truly work, you need to start from the very beginning—collecting, storing, centralizing, and organizing it. We encourage our clients to align all departments to work internally on the data so we can create a unified digital system that delivers personalized experiences.

If you’re unsure where to start with your data, we can help. Collecting feedback at various touchpoints along the customer journey is crucial for gaining insights into customer satisfaction and loyalty. Book an IT consultation with us, and our experts will guide you in mapping out a path to get more from your data and build a system that works for your business and team.

Reskilling Staff

The pandemic hit hard in early 2020, especially for the hospitality and travel industries. Even five years later, many businesses are still feeling the impact. Recruiting and retaining skilled staff has become a major challenge post-pandemic.

Reskilling to address technology’s impact is of utmost importance, as about 40% of hotel General Managers place it among their top three workforce challenges.

Source: Deloitte

We strongly believe that adopting the right technology can help. For example, creating an app to train your staff not only saves time but also ensures consistency in learning. AI assistants can also work alongside your team, helping with tasks like recruitment (providing industry insights, crafting emails) and staff training. Imagine having an app dedicated to making your team’s work easier and more efficient!

How Technology Tackles These Challenges and Supports a Customer-Centric Hospitality Culture

Automation, AI, and similar technologies may threaten many. However, the debate about replacing humans isn’t about that—it’s about cooperation and working hand in hand with technology to achieve the highest standards and establish brand-new “golden standards.” Technology is here to assist staff in listening to and collecting customer insights from data.

Let’s review some of our cases to see examples of how technology helps improve customer experience and supports customer service.

Examples of Intellectsoft projects

Property management systems (PMS)

We created a web platform and mobile app that makes managing daily tasks easier and offers extra services to improve residents’ experience. It gives a clear overview of daily activities and helps with managing units and users. Residents can easily book amenities, submit service requests, and report incidents. The platform also includes features for equipment management, key instructions, workflows, and custom permissions. This makes it easier for staff to stay on top of equipment and ensure residents have all the information they need. Plus, tools like announcements, quick votes, a forum, and a community calendar help build a connected and engaged community.

Guest Experience Management App

Our next app helped our client improve their guest experience by replacing printed marketing materials and the need for phone calls with a smart solution. Now, guests can easily order in-room dining, make reservations, and interact with staff— through a simple tablet in their room. The solution includes three parts: a custom in-room tablet with a variety of services, an admin panel for hotel staff and service providers, and a backend system that connects everything together. This approach makes things easier for guests and staff, improving both convenience and efficiency.

Existing Customers First: Building Loyalty with Personalized Touchpoints

Keeping existing customers is not just a strategy; it’s well-known that retaining existing customers is more cost-effective than acquiring new ones. In fact, research shows that it costs five times more to acquire a new customer than to retain an existing one. KPMG named customer retention as the number one revenue driver for the company.

Moreover, a 5% increase in customer retention can lead to a 25% to 95% increase in profits, showing the significant impact loyal customers can have on a business’s bottom line. Retention strategies, like personalized experiences and loyalty programs, can foster long-term relationships and generate recurring revenue, ultimately making them an invaluable part of any business model.

Personalization: How Technology Can Help?

Everyone loves to feel special—it’s part of being human. In hospitality, personalization has evolved from being a luxury to an essential standard. With the right technology to manage your data effectively, you can deliver those “wow” moments that guests won’t forget.

More than half of hotel chains are already using personalization features on their websites, booking platforms, and apps, and another 39% are planning to follow suit soon. They’re tailoring experiences to fit guest preferences perfectly.

Source: Deloitte

How does technology make it happen?

CRM Systems: They help you keep track of guest preferences, booking history, and special requests so you can offer services tailored just for them.
Loyalty Programs: Personalized rewards and offers show your guests that you value them, keeping them coming back for more.
AI Personalization: AI analyzes guest data to predict what they’ll love (from room upgrades to local recommendations) before they even ask.
IoT Gadgets: Smart room features like voice-activated assistants, or temperature controls adjust to your guests’ preferences, making their stay more comfortable.

With tech-powered personalization, you’re building loyalty and maximizing the lifetime value of every customer.

Our Case Study: Smart Hotel Management & Loyalty Program

For one of our clients, we created a smart room solution, complete with a custom IoT system. Guests can use a mobile app to control services, explore amenities, and find resort information-- with a special touch to their suite type. For the client’s entertainment business, we improved their legacy software by running a full IT and code check, fixing issues, and making the system better for customers.

Along with that, we developed a mobile app for the loyalty program, allowing businesses to effortlessly reward their customers and keep them engaged with exclusive benefits.

Our solutions not only helped the client with special experiences for guests; it also improved operations, cutting costs by eliminating inefficiencies. Here's what our experts shared:

"We transitioned away from ESB (Enterprise Service Bus) systems, which previously cost millions, and replaced them with more efficient, self-managed solutions. Similarly, we’ve implemented Device Farms that improved operations and saved resources."

Leveraging Software to Increase Upsell Opportunities

Here are some examples of tech tactics that will help your team sell more and introduce new offerings to existing customers, improve overall efficiency leaving your team grateful:

Dynamic Pricing Algorithms

For finance and marketing teams, manually calculating pricing by segment to introduce your clients can be incredibly challenging. AI-powered tools can strongly optimize these strategies by analyzing your database in detail.

Upselling via Apps

Boosting revenue in the hospitality business often comes down to personalized experiences. Imagine this: a guest books a room, and then your app suggests a spa package or a room upgrade at just the right moment. Later, it nudges them to book a dinner reservation or a guided tour designed to their preferences. With apps offering these personalized recommendations during and after bookings, you’re not just increasing your revenue per guest but also skyrocketing their experience. And you do it in a sustainable way, not by speculating, but by offering what your customers desire based on their previous experiences. It’s a win-win: seamless, helpful, and far from pushy.

Inventory and Resource Management Software

Making every resource count in your hospitality business is key. Inventory and resource management software allows you to effortlessly track everything from linens to room availability, ensuring nothing goes to waste. Having real-time insights to reduce overstock, avoid shortages, and optimize operations assists sustainably keep everything under control and know what you need to focus more. It helps maximize room occupancy by aligning bookings with available resources, ensuring every room and item is used effectively. This approach leads to smarter management, better guest experiences, and a noticeable boost to your bottom line.

Adopting these strategies not only optimizes your operations but also drives business growth. Ready to discover how technology can elevate your goals? We’re here to create a tailored solution for you.

Steps For Implementing a Customer Service Technology Solution

Improving customer service in hospitality doesn’t have to be a daunting task. With the right technology, you can smooth the path of your operations, speed up response times, and elevate the overall guest experience. Here’s where you can make it happen:

1. Understand Your Needs

Start by identifying the challenges your business is facing. Are you struggling to manage high volumes of inquiries, track customer feedback, or personalize the guest experience? Pinpointing your needs will guide you to the best solutions.

2. Pick the Right Tools

Choose technology that aligns with your goals. Look for solutions that are scalable, easy to use, and integrate effortlessly with your current systems. Options like CRM software, live chat tools, or a guest experience app can make a difference.

3. Equip Your Team

Technology is only as effective as the people using it. Train your staff to make the most of the new tools, so they can deliver exceptional service and resolve issues quickly. Confident, well-equipped staff creates happy, loyal customers.

4. Keep Improving

Once implemented, monitor how well the solution works. Are response times improving? Are customers more satisfied? Regular evaluations will help you fine-tune your approach and keep things running harmoniously.

Some Tech Ideas for Hospitality Businesses

CRM Software: Manage customer interactions and preferences.
Guest Experience Apps: Delight guests with personalized experiences right at their fingertips.
Amenity Management Systems: Simplify operations for everything from room service to facility bookings.
Helpdesk Software: Resolve customer issues optimally.
Live Chat Tools: Offer instant support and answers.
Social Media Management Tools: Keep customer interactions engaging and organized.

Integrating these strategies will not only improve your customer service but also deliver unforgettable customer satisfaction, loyalty, and, ultimately, your bottom line. Ready to take the next step? Book a consultation with our experts.

Conclusion

To wrap up everything we've discussed, customer satisfaction and experience are at the heart of hospitality. Retaining customers is more than just keeping them around—building strong, long-lasting relationships and consistently meeting their evolving needs. By understanding their pain points and offering personalized solutions, you can inspire loyalty and drive progress. With the right technology and continuous improvement, your business can stay ahead, let go of what no longer serves you, and keep growing.

At Intellectsoft, with over 17 years of experience in software development, our expert team is ready to help. We create everything from mobile apps to full-fledged portals and systems, leveraging the latest technologies like AI, Cloud, and Machine Learning. With deep experience in the hospitality industry, we’re here to craft personalized solutions that bring your business unforgettable customer experience and retain your valuable clients.

Ready to double your revenue and level up your customer retention strategy with personalized technology? Contact our experts, and we look forward to working hand in hand with you to build or revitalize the perfect app or system for you.

Tetiana Borysova

Content Writer

Cybersecurity Challenges in Healthcare Industry

Why is Cybersecurity Important in Healthcare?