Healthcare HR Under Siege: How Cybersecurity Threats Are Targeting Employee Data and What You Can Do About It

Healthcare organizations are facing an unprecedented cybersecurity crisis. Headlines often focus on patient data breaches, but a quieter threat is emerging: healthcare HR departments. Employee records contain personally identifiable information (PII), including Social Security numbers, payroll details, background checks, and health insurance claims. For attackers, this data is just as valuable as patient information.

According to HIPAA Journal’s analysis of HHS OCR reports, there were 739 significant healthcare breaches in 2024, affecting 276.8 million records. By comparison, there were 725 significant breaches in 2023. The UnitedHealth Change Healthcare attack alone affected 190 million Americans, marking the single largest healthcare data breach in U.S. history (Reuters; HIPAA Journal).

The financial toll is staggering. IBM reports that the average cost of a healthcare breach was $9.77 million in 2024, the highest for any industry for the fourteenth consecutive year. In 2023, that figure was even higher at $10.93 million.

For healthcare HR professionals managing employee records and systems adjacent to the EHR, this creates a dual challenge: protect sensitive workforce information and maintain operational compliance in the face of escalating cyber risk.

The Healthcare Cybersecurity Crisis by the Numbers

• 67 percent of healthcare organizations were hit by ransomware in 2024, up from 34 percent in 2021 (Sophos)
• 53 percent of those victims paid ransom demands to regain access, often including HR and payroll systems (Sophos)
• The average healthcare employee receives 96 fraudulent emails per quarter (CrowdStrike)
• Business Email Compromise attacks grew 473 percent in 2024, frequently targeting HR with fake payroll updates or vendor invoices (CrowdStrike)
• 66 percent of healthcare providers say insider breaches are more likely than external attacks (Netwrix)

Why Healthcare HR Is a Prime Target

Healthcare HR teams sit at the intersection of high-value data and broad system access. They manage not just payroll and employee records, but also health insurance claims, occupational health information, and workers’ compensation files, which overlap with clinical and EHR systems.

This overlap creates a stepping stone: when HR credentials or systems are compromised, attackers can sometimes move laterally into patient-facing environments. This gap in security makes HR both a target and a potential gateway into more sensitive systems.

Key vulnerabilities include:

• Rich PII: Social Security numbers, banking details, medical claims, and background checks
• Broad system access: Permissions across HRIS, payroll, credentialing, and sometimes EHR platforms
• Third-party exposure: Vendors for payroll, benefits, and staffing multiply entry points
• Compliance blind spots: Paper files and legacy systems often sit outside IT security controls
• Hybrid work risks: Remote access expands the attack surface significantly

Five Critical Threats Targeting Healthcare HR in 2025

1. Ransomware as the new normal

Ransomware hit 67 percent of healthcare organizations in 2024, and over half paid to regain access. Payroll, scheduling, and credentialing systems are frequent victims.

2. Phishing and Business Email Compromise

Healthcare employees receive an average of 96 fraudulent emails per quarter, and Business Email Compromise (BEC) attacks increased by 473 percent in 2024, often targeting HR with fake payroll updates and vendor invoices (CrowdStrike).

3. Insider and identity-based threats

The Netwrix 2025 report found that insider threats and identity compromise now drive many of the most severe breaches in the healthcare industry. Elevated HR permissions pose a significant risk.

4. Vendor and Third-Party Access Risks

Healthcare organizations rely on vendors for payroll, benefits administration, staffing, and credentialing. Each connection expands the potential attack surface.

The Netwrix 2025 Healthcare Cybersecurity Report found that identity-based compromises are increasingly tied to third-party accounts and excessive permissions. Once attackers gain access through a vendor or compromised identity, they can move laterally into HR and even EHR systems.

For HR leaders, this means vendor access requires the same strict controls as internal accounts, including:

• Limiting permissions to the minimum necessary
• Requiring multi-factor authentication for all vendor logins
• Regularly auditing and deactivating unused vendor accounts
• Monitoring access patterns for unusual activity

5. Compliance blind spots

HIPAA requires the protection of electronic PHI, which may include employee health benefits and occupational health records. Yet many HR systems remain outside formal IT security programs, leaving audit gaps and regulatory risk.

Meeting HIPAA and Healthcare HR Compliance

HIPAA security and privacy rules apply to employee health-related data and EHR-adjacent files. DynaFile supports compliance by:

• Encrypting HR files at rest and in transit
• Applying granular role-based access controls
• Maintaining comprehensive audit trails for every file action
• Automating retention policies so records expire or archived on schedule

These capabilities give HR leaders confidence during audits while reducing risk exposure from stale or unsecured files.

Why DynaFile Is the Right Solution for Healthcare HR

Generic cloud storage tools cannot provide HIPAA-level protections or healthcare-specific compliance features. DynaFile is built for HR teams in hospitals, health systems, and teaching institutions that must balance efficiency with rigorous compliance.

Key DynaFile Capabilities and Benefits for Healthcare HR

Key Capability	Benefit for Healthcare HR
Granular access control & role-based permissions	Only the right people access the right files, reducing insider risk
Comprehensive audit trails and activity logs	Prove compliance readiness and investigate anomalies
Scan-to-cloud automation + document intelligent filing	Turn physical files into digital, searchable, secure records
DocuSign / Adobe Sign / PandaDoc integration	Seamless signing, tracking, and filing
Automated retention, purging, version control	Automated retention, purging, and version control
Encrypted sharing & secure document links	No need to send insecure attachments
HIPAA-level cloud security architecture	Built-in protections meeting healthcare security expectations

Proven Results Across Large Organizations

• MorningStar Senior Living (healthcare and senior care, 3,200+ employees): cut paper files by over 90 percent, eliminated entire file rooms, and improved audit readiness
• BioTelemetry (nationwide employer network): 5x faster file access compared to legacy systems
• NANA North (support services with 3,000+ employees): reduced paper by 95 percent and achieved 99 percent time savings in onboarding and file management

FAQs

Secure Your Healthcare HR Document Management System Today

Healthcare HR teams are on the front lines of cybersecurity. Employee records are now as valuable to attackers as patient files, and the consequences extend from compliance fines to direct risks to patient safety.

By modernizing your HR document workflows, you can protect sensitive information, maintain audit readiness, and keep operations running smoothly.

Ready to secure your healthcare HR document management system? Schedule a DynaFile demo to learn how our HR-focused healthcare solution can enhance your security posture and integrate seamlessly with your existing technology ecosystem.