Cyber Heists Target Healthcare Payments

Cyberattacks on healthcare payment processors are on the rise, with criminals using increasingly sophisticated methods to redirect payments. These attackers are not only impersonating employees but are also engaging in a range of malicious activities designed to gain access to sensitive information and divert funds. They often hack emails, reroute financial transactions, steal bank account details, and open new fraudulent accounts.

Phishing emails and social engineering are among the most common tactics used to trick employees into providing login credentials or other sensitive data, which are then exploited to manipulate any and all payment systems.

For instance, in one case, cybercriminals accessed a healthcare provider’s payment system by obtaining employee credentials, allowing them to change direct deposit information and steal $3.1 million. Another incident saw attackers posing as employees to alter ACH payment instructions, resulting in the loss of $840,000 before the fraud was detected. These attacks typically involve rerouting payments to accounts controlled by the criminals, and in some cases, they open new bank accounts under the victim’s name to receive the stolen funds.

Such breaches not only result in significant financial losses but also create serious legal challenges for healthcare organizations and Pharmacies, which are often left to navigate the fallout. They can face regulatory scrutiny under laws like HIPAA, which requires the protection of sensitive patient information, and may be held liable for failing to secure payment processes. Pharmacies, in particular, may find themselves in disputes with drug wholesalers, buying groups, pharmacy benefit managers, healthcare insurers, and other payors over who bears the responsibility for the diverted funds.

Marcarian Law Firm, led by Armond Marcarian, a licensed pharmacist and trial attorney with significant years of experience in litigating healthcare related cases and assisting pharmacists and pharmacy owners, is uniquely positioned to guide healthcare providers and pharmacies through these emerging challenges.

While cyberattacks present new and uncharted legal territory for many in the healthcare sector, Marcarian Law Firm’s deep understanding of the industry’s complexities ensures they are exceptionally qualified to handle the legal issues that arise.

Their extensive experience in healthcare and Pharmacy Law allows them to offer strategic legal counsel to protect clients’ interests, resolve disputes, and address the regulatory risks posed by these evolving threats, making them the most qualified partner in safeguarding your business and upholding the law.