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Insider actions remain the leading HIPAA compliance risk

Written by Farah Amod | January 15, 2026

Most healthcare data breaches continue to stem from employee behavior rather than external attacks.

 

What happened

Recent threat intelligence and enforcement reports indicate that a big portion of healthcare data breaches stem from internal actions, including unauthorized access, misdirected communications, and employee errors. According to IBM’s X-Force Threat Intelligence Index, more than 70% of healthcare breaches analyzed were linked to insider activity, either intentional misuse or unintentional errors that enabled access to sensitive data. These findings challenge the assumption that ransomware and external hacking groups represent the primary HIPAA risk for most organizations.

 

Going deeper

Insider-related incidents generally fall into two categories. Some involve intentional misuse, such as employees accessing patient records without a legitimate purpose, often referred to as snooping. Others involve inadvertent actions, including falling for phishing messages, misconfiguring systems, or sending sensitive information to the wrong recipient. While these actions differ in intent, both result in unauthorized disclosure of protected health information. Regulators consider these risks foreseeable and preventable, particularly when access controls, monitoring, and training are insufficient. As healthcare organizations expand digital access to records, the number of employees with broad system privileges continues to grow, increasing exposure when safeguards are weak or inconsistently enforced.

 

What was said

Compliance and security professionals have warned that insider activity often goes undetected longer than external attacks because it occurs within trusted environments. Investigations frequently show that organizations lacked effective auditing of record access, failed to review user behavior patterns, or did not apply sanctions consistently when violations occurred. Experts have also noted that phishing-driven breaches are commonly misclassified as external incidents, even though they begin with employee interaction. This distinction matters because regulators assess whether organizations took reasonable steps to prevent predictable human error.

 

The big picture

The financial impact of insider-driven incidents helps explain why regulators continue to focus on workforce behavior. An analysis by the Ponemon Institute, published by DTEX Systems, found that insider threats, whether caused by deliberate misuse or simple mistakes, can bypass perimeter defenses and expose protected health information with lasting consequences. In healthcare, the average cost of an insider-related incident was estimated at up to $16.2 million, reflecting not only breach response and regulatory penalties, but also operational disruption and long-term reputational harm. The findings reinforce that insider risk is not a secondary issue, but a central compliance and security concern for healthcare organizations.

 

FAQs

Why do insider actions account for so many HIPAA incidents?

Employees have legitimate access to systems containing sensitive data, and mistakes or misuse can occur without triggering perimeter security controls.

 

Is snooping considered a HIPAA violation?

Yes. Accessing patient records without a valid treatment, payment, or operational reason is an unauthorized disclosure under HIPAA.

 

Are phishing incidents considered insider breaches?

When an employee’s action enables unauthorized access, regulators often classify the incident as an internal failure rather than an external intrusion.

 

What controls help reduce insider-related risk?

Role-based access limits, audit logs, regular access reviews, behavior monitoring, and consistently enforced sanctions policies.

 

How do regulators evaluate these incidents?

They assess whether the organization identified insider risk in its risk analysis and implemented reasonable safeguards to address it.