Due to significant technological advancements, Dental service organizations (DSOs) face increasing risks to data security, particularly in their accounting processes. DSOs handle lots of sensitive information, including financial records and patient details. While digital systems make managing this data more efficient, they also open the door to various security threats that could compromise this valuable information.
These data security risks can affect the confidentiality, integrity, and availability of the data DSOs hold. Confidentiality ensures that only authorized people can access the data while integrity means the data remains accurate and unchanged for the required period. Availability deals with ensuring that data is accessible when needed. However, when these aspects are threatened, the consequences can be severe, ranging from financial losses to a breach of patient privacy.
Cybercriminals are increasingly targeting DSOs because they know the value of both financial data and medical records. These records can be used for identity theft or sold on the black market hence tampering with a DSO’s financial data can lead to significant legal problems for the organizations.
This blog will explore the various data security risks that DSOs face in their accounting operations and best practices for protecting sensitive information.
Common Data Risks in Dental Accounting
Phishing Attacks
Phishing is when attackers send fake emails that look like they come from a trusted source. These emails often contain links or attachments that, when clicked, can steal sensitive information or infect the computer with malware. For example, an accountant can receive an email that appears to be from a bank, asking them to verify their DSO account information. By clicking the link and entering their details, hackers use this information to gain access to the organization’s financial accounts.
Ransomware
Ransomware is a type of malware where hackers lock up files and demand payment to unlock them. For example, a dental practice’s accounting software gets infected with ransomware. The attackers demand payment in exchange for the decryption key. Until the ransom is paid, the practice cannot access patient billing information or financial records.
In an article by the Independent news page, in May 2023, the Police Department and City Hall in Dallas were hit by a ransomware attack, taking down their websites and causing some jury trials to be canceled. While 911 calls were not affected, the attack disrupted the computer system used by firefighters for emergency dispatch, forcing them to switch to manual operations. It’s unclear if any ransom demands were made but the city’s team worked with vendors to isolate the ransomware, remove it from infected servers, and restore affected services Due to the attack, the Police Department and City Hall websites were still down in the afternoon, and the Municipal Court canceled all jury trials and duties for the day.
Insider Threats
Sometimes, data breaches occur from within the organization caused by malicious intent or careless behavior of employees. These internal threats are a concern where employees might accidentally or intentionally mishandle data, leading to security breaches. An employee can decide to steal patient information to sell it on the black market.
On the other hand, an accountant may also send an email with sensitive financial data to the wrong person. Therefore, DSOs must implement strong security measures and ensure their staff is well-trained in handling data securely.
Business Email Compromise (BEC)
Hackers may target specific individuals in the company, typically those with financial authorization access, to deceive them into approving fake bills. These attacks demand meticulous planning and thorough research, including gathering information about the organization’s employees and business partners, to successfully convince potential victims to release funds.
An accountant may unknowingly approve paying a bill for a rushed invoice payment request from a vendor via email without verifying its legitimacy. In some cases, hackers might even impersonate an internal employee’s email address to make the request seem more genuine.
Weak Passwords
Simple or reused passwords can make it easy for hackers to access accounts. For instance, an accounting system for the whole dental practice might use the password “123456”. A hacker can simply guess this common password and access financial records and patient data.
Unsecured Networks
Using public or unsecured Wi-Fi networks can expose data to interception by cybercriminals. An accountant may log into the dental practice’s financial software using a public Wi-Fi network at a coffee shop. Even though it may be a convenient working space for accountants on the road, hackers on this same network can intercept the login credentials and access the accounting system.
Outdated Software
Failure to update accounting software regularly can cause security vulnerabilities that hackers exploit. The dental practice uses an old version of its accounting software. Hackers exploit known vulnerabilities in the old version to break into the system and steal data.
Lack of Encryption
Data encryption means converting data into a secure code that requires a key to access, making it hard to read if intercepted. If the practice’s financial data is stored in plain text on the server, any cybercriminal who gains access to the server can easily read and steal this information.
Data security is not just a technical issue but a critical aspect of maintaining trust and ensuring the smooth operation of dental service organizations. By understanding these risks and taking proactive steps, DSOs can safeguard their data, ensure smooth operations, and maintain the trust of their patients. The risks are real and varied, from phishing attacks and ransomware to insider threats and unsecured networks. These threats can have severe consequences, including financial losses, legal repercussions, and damage to the organization’s reputation.
Taking data security seriously is imperative. Implementing strong passwords, regularly updating software, encrypting sensitive information, and educating employees about the risks are essential in safeguarding valuable data. By prioritizing data security, dental service organizations can protect themselves against the ever-evolving landscape of cyber threats.
Learn more about how the Bright Balance fractional team works with Dental Organizations to help uphold data security and integrity under industry best practices. OR book a CFO consultation today with our team to learn more about how we can help mitigate the risks associated with valuable data.
