Arpna Aggarwal is an expert in cybersecurity and attenuation of compatible risks in the health sector.
At the end of last year, a major violation involving new era life insurance companies affected protected health information (PHI) of more than 335,000 people. The deep cause of data violation was the unauthorized access of a cybercriminated to its computer network. The data exposed of insured, agents and insurance partners included names, birth dates, insurance identity numbers, complaints on complaints (including diagnostic / processing details) and social security numbers.
The decentralized architecture of blockchain, cryptographic security and automated governance would have considerably reduced or prevented the attack. Here is an overview of how the blockchain could have avoided the exfiltration of unauthorized data by eliminating centralized data standards, applying granular access controls and allowing the detection of real -time anomalies.
Decentralized data storage
The centralized data storage of New Era has created a single failure point, allowing hackers to exfiltrate sensitive customer data over a period of nine days.
Solution
Great distributed book technology (DLT) eliminates simple failure points (preventive control): Data on patients stored on a large blockchain book would require consensus of several nodes to modify the records, preventing unauthorized modifications. Pirates cannot crush the data without validation on a network scale, even if they vague a node.
Encrypted fragmentation (preventive control): The data is divided into fragments using algorithms like Reed-Solomon. For example, a patient’s social security number could be divided into 10 bursts, requiring six to rebuild. Authorized employees can access specific fragments without exposing decryption keys, ensuring secure sharing while maintaining confidentiality.
Immutable audit trails
The delay in the detection of the breach to the new era highlights critical gaps in inherited systems: centralized journalization, reactive surveillance and opaque audit traces. Companies can move to a proactive security posture by integrating logging in blockchain and the detection of anomalies led by AI.
Solution
Journalization to the test of time in real time (detective control): Each access, modification or transfer of data is saved on an authorized blockchain (for example, Hyperledger fabric). This creates a large unalterable and horoded book, guaranteeing attackers cannot delete or modify the newspapers.
For example: a pirate who tries to erase his traces would fail, because the cryptographic hash of the blockchain would expose the gaps through the knots.
Transparent responsibility (detective control): Insurers, auditors and regulators can access the big bookchain book in real time to check compliance, trace the origins of violation and validate the correction stages.
Intelligent contracts for access control
Low access controls and detection of delayed threats highlight the urgent need for intelligent contracts and surveillance led by AI. Insurers can apply granular access policies and automate real -time responses to suspicious activity.
Solution
Dynamic access control (preventive control): Intelligent contracts codify authorizations based on roles (RBAC) in binding policies. For example:
Access approved by policy benefits: Patients pre-authorize specific suppliers to access their medical records only during active complaints.
Time -related authorizations: Convenience experts lose access automatically after 30 days unless the reutorization of reautical, preventing prolonged exposure.
Automated threat response with AI tools (detective control): AI tools monitor blockchain newspapers for models, such as copying loose data. Intelligent contracts perform predefined responses when detecting anomalies, such as the freezing of the compromised accounts and the revocation of token approvals.
Decentralized identity management
There are systemic vulnerabilities in traditional identity management such as centralized databases of SSN and insurance IDs. By adopting the self-souveraine identity (SSI), insurers can eliminate centralized data silos and mitigate violation impacts.
Solution
Decentralized identifiers (DIDS) (preventive control): Police holders generate unique and anchored did in blockchain to replace SSNS / insurance ID. These IDUs are cryptographically secure and controlled only by the user. Since there is no centralized database, hackers cannot steal from SSN / idle ID, because the data is decentralized and encrypted. In addition, only the necessary information is shared (for example, proof of residence without address), minimizing the exhibition.
Secure data sharing with partners
This violation also affected partners by exhibiting sensitive data from Boston Mutual, highlighting the risks of centralized data sharing. In this case, multipartite cryptographic verification and token data exchange can be implemented to prevent the copy of unauthorized third parties and reduce exposure.
Solution
Interorganizational consensus (preventive control): Partner insurers would each hold a share of a cryptographic key required to access shared data. No single entity has the whole key, eliminating the unique compromise points.
Tokenized data exchange (preventive control): Replace sensitive data (for example, police holder ID) with cryptographic tokens (Piiiano, Fortanix) which keep the original format but do not contain any intrinsic value. For example, the social security number 123-45-6789 becomes TKN-45-6789, stored in shared databases.
What the future contains
In 2025, blockchain technology experienced an implementation earlier and earlier among health insurance companies. The adoption accelerates, insurers piloting or increasingly deploy blockchain solutions to meet the persistent challenges of industry; However, generalized and large -scale deployment remains limited.
Developing countries have managed to adopt blockchain technology. An excellent example is the help: Tech System for NHIF Tanzania, which serves as a case study of African insurance. Blockchain technology has prevented cyber attacks, fraud and falsification of data, offering improved security, transparency and operational confidence in the insurance chain of insurance.
The digital identity on the blockchain emits NHIF members A digital identity linked to their insurance account, stored safely on a blockchain platform. This prevents unauthorized access and guarantees that only verified persons can use insurance services.
All transactions – engaging in the program, complaints and payments – are meticulously recorded on a large decentralized book using immutable and infiltrated recordings. This immutability guarantees that the data remains unchanged and cannot be deleted by pirates or malicious initiates, effectively attenuating a significant cyber attack vector.
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