Why Cybercriminals Target Small Healthcare Practices
Cybercriminals target small healthcare practices because they store sensitive information, including patient records, insurance details, and financial data, and because they often relying on outdated technology and limited cybersecurity defenses.
Attacks against healthcare are increasing too. According to the HIPAA Journal, 772 data breaches were reported between 2024 and 2025. As these attacks increase, it’s the small healthcare practices that lack proper protection that are at the greatest risk.
In this blog, we’re covering why small healthcare practices are tempting targets, why cybercriminals target Protected Health Information (PHI), the biggest cybersecurity challenges facing small practices, and how healthcare organizations can better protect themselves.
What Makes Small Healthcare Practices So Appealing
A common misconception persists among many business owners: that cybercriminals only target the big guys.
In fact, a study by Coalition shows that about 64% of small businesses don’t believe they’re an attractive target for cybercrime, despite 79% experiencing at least one cyberattack in the last five years.
They see the major breaches making the news, like Yahoo’s massive security breach, and assume attackers wouldn’t bother with smaller organizations.
Not only is that wrong – it’s dangerous.
Here are some of the main reasons that make small businesses such tempting targets.
Less Security Resources
By law, small health care practices are required to have specific security measures to protect their patient data (known as PHI – more on that later), but some small practices either don’t fully understand what their security measures actually protect or they focus on meeting the bare minimum security compliance requirements and nothing more.
For instance, a Paubox report shows that 98% of surveyed small healthcare practices thought their platforms automatically encrypted emails, when this was not the case. Another 64% believed that patient portals were required for compliance when that isn’t actually the case.
This confusion and lack of understanding can end up leaving large security gaps for cybercriminals to exploit.
Lack of Employee Training
Human error is responsible for around 60% of cyber incidents. That’s because social engineering attacks are becoming harder to spot, and without proper security awareness training, employees don’t know what to watch out for.
Even in healthcare, where employees are required to complete security awareness training, the quality of training can vary greatly. Just because you have a training program doesn’t mean it’s effective.
Training programs can become outdated, can lack oversight needed to monitor employee progress, and, to be frank, some are simply boring. When employees stop engaging with their training, they’re more likely to fall for social engineering tricks like phishing and ransomware attacks.
Aging Infrastructures
Tech doesn’t last forever, but replacements are expensive. Many small businesses know that they’re held back by their outdated technology, but with limited budgets, replacing that hardware isn’t always easy.
But the longer businesses hold onto their aging technology, the greater the risk. That’s because cybercriminals have longer to exploit outdated technology, especially if that technology has stopped receiving security updates from the vendor.
It’s easy to put off replacing your tech if it still works, but if your systems go unsupported for too long, they can become a serious risk – and that’s exactly what cybercriminals are counting on.
Overlapping Teams
If you’re a small healthcare practice, wearing a few extra hats is just part of the job.
For example, maybe your service coordinator also manages your QuickBooks account. Or maybe one of your doctors is pretty good with computers and has been handling server updates for the past few years.
While convenient for your team, the more systems a single person has access to, the greater the impact if their account is compromised. If that service coordinator falls victim to a phishing scam, the cybercriminal doesn’t just gain access to your service scheduling software – they also gain access to your accounting system, payroll, email, and anything else they can access.
This is known as lateral movement, where attackers use one compromised account to move through your network. The more permission overlap your team has, the easier that becomes.
What Is Protected Health Information (PHI)
Protected Health Information (PHI) is one of the most valuable types of data a cybercriminal can steal, and is protected by HIPAA privacy rules due to its importance.
PHI can include:
- Personal information, such as names, addresses, phone numbers, and dates of birth.
- Identification numbers, including Social Security numbers, medical record numbers, and health insurance information.
- Medical information, such as diagnoses, prescriptions, test results, treatment plans, and medical histories.
- Billing and payment information related to healthcare services.
Cybercriminals can use PHI for identity theft, insurance fraud, fraudulent medical claims, or even obtaining medical care under someone else’s identity. This misuse is far harder to spot than a strange transaction on your credit card statement, and victims may not realize what is happening for months or even years, giving cybercriminals far longer to exploit the data.
Protecting PHI Under HIPAA
Because PHI is so sensitive, small healthcare practices are legally required to protect it under HIPAA law. Failing to do so can result in significant fines, legal consequences, and reputational damage.
Key requirements include:
- Protecting PHI in both physical and digital formats.
- Restricting access so only authorized staff can view patient information.
- Implementing security systems such as access controls, encryption, multi-factor authentication, and ongoing risk assessments.
This is only a high-level overview. HIPAA requirements go far beyond what we can cover in a single blog, but understanding the basics is an important step forward.
That said, having a security partner, such as a managed service provider (MSP) who can better translate and help secure your technology, is the best way to satisfy HIPAA regulations and keep your systems safe.
Protect Your Small Healthcare Practice With an MSP
Keeping up with HIPAA security requirements, combating cybercriminals, and training your employees is a lot for any small healthcare practice. That’s why many practices are turning to MSPs for help.
With an MSP, your small healthcare practice gets:
24/7 Proactive Support
The best way to defend against cybercrime is to prevent issues before they become major problems. While 100% protection isn’t realistic, a good MSP operates with a proactive support model. That means spotting and fixing issues before they turn into serious problems.
Improved Cybersecurity
MSPs can equip small healthcare practices with advanced security solutions like multi-factor authentication, encryption, and security policies such as zero trust.
An MSP can also help make sure your security tools are properly updated and maintained, scheduling larger updates during off-hours so you won’t have to worry about disruptions.
Expert Compliance Assistance
MSPs naturally support compliance. That’s because their remote monitoring tools provide oversight for audits, their security tools help satisfy regulations, and their ability to help their clients better understand their security obligations means fewer surprises.
Not only that, but MSPs constantly watch for changing and evolving regulations so you can rest easy knowing your systems are always in compliance.
Better Cyber Awareness Training
MSPs provide security awareness training programs tailored to their client’s business. These programs may include employee progress tracking, digestible, microlearning videos, and simulated phishing tests designed to help employees recognize phishing attempts.
MSPs can also help regularly schedule reminders and training sessions so cybersecurity is never forgotten about.
Better Business Continuity
While prevention is the goal, incidents can still happen. Whether your small healthcare practice experiences a power outage, ransomware attack, or another major disruption, having a plan is critical.
MSPs help businesses create strong backup and disaster recovery plans. These plans outline exactly how your business can get back up and running as quickly as possible during a disaster, supported by data recovery solutions that restore important information after data loss or damage.
The 20 MSP Helps Small Healthcare Practices
It’s not easy trusting someone with your business, your data, and your safety. We get it.
That’s why we’ve worked hard on earning that trust. As a SOC Type II certified organization, we’ve demonstrated that we take security seriously and have the chops to back it up.
Whether you need stronger security, improved employee training, proactive IT support, or all of the above, we’re here to help. And because we believe getting IT support should be predictable and easy, we offer our services through straightforward, flat-rate pricing. No surprises.
Of course, a few words at the end of a blog aren’t enough to earn your business. That’s totally fine.
Let’s talk first. We’d love to see how we can help protect your small healthcare practice.
Want more tips like this?
Subscribe using the form on the right and get our latest insights delivered straight to your inbox.
About The 20 MSP
As a leading provider of managed IT services, The 20 MSP serves thousands of businesses nationwide, providing each one with white-glove service, secure and streamlined IT infrastructure, and 24/7/365 dedicated IT support. We believe in building lasting relationships with clients founded on trust, communication, and the delivery of high-value services for a fair and predictable price. Our clients’ success is our success, and we are committed to helping each and every organization we serve leverage technology to secure a competitive advantage and achieve new growth.
