Types of HIPAA Violations, Examples, and 7 Ways to Prevent Them

What Is a HIPAA Violation? 

HIPAA violations are failures to protect sensitive patient health information (PHI), involving unauthorized access, use, or disclosure, lack of safeguards, or improper disposal, leading to significant financial fines (from hundreds to millions of dollars) and even criminal charges (fines, imprisonment) for severe cases.

Types of violations and examples:

• Unauthorized access/disclosure: Staff looking at records they shouldn’t, discussing patients with friends, or sharing info without consent.
• Security failures: Not encrypting data, losing unencrypted laptops/phones, or failing to secure systems.
• Improper disposal: Not shredding or securely wiping old records/devices.
• Lack of training/policies: Insufficient workforce training or failure to conduct risk assessments.
• Patient rights issues: Denying patients access to their own records or failing to report breaches.

This is part of a series of articles about HIPAA compliance

Which Organizations are at Risk of HIPAA Violations?

HIPAA applies primarily to covered entities, which include healthcare providers who transmit health information electronically, health plans, and healthcare clearinghouses. In addition, business associates )third-party vendors or contractors that handle PHI on behalf of covered entities) are also subject to HIPAA regulations. This includes IT service providers, billing companies, cloud storage vendors, and others who might encounter PHI in their work.

A violation can be committed by any covered entity or business associate, as well as by employees, contractors, or any individual acting under their authority. Even if a violation is unintentional, the responsible party can still face penalties. The expansive definition of covered entities and business associates means that HIPAA compliance is relevant for organizations well beyond traditional clinics and hospitals, extending to technology companies, consultants, and data processors involved in healthcare.

HIPAA Penalties and Enforcement 

Enforcement of HIPAA is primarily handled by the Office for Civil Rights (OCR) within the Department of Health and Human Services. When violations are discovered, the OCR investigates the circumstances and can impose a range of penalties based on the severity and intent behind the breach. Civil penalties are structured in escalating tiers, from $100 to $50,000 per violation, with a calendar year cap for repeated infractions. The fines reflect whether the violation was due to reasonable cause, willful neglect, or lack of awareness.

Criminal penalties can also be imposed for intentional misuse of PHI, including fines and potential prison time. Penalties can be heightened if the violation involves false pretenses or personal gain. Beyond monetary fines, enforcement actions may involve mandatory corrective action plans and ongoing monitoring. The consequences extend beyond legal liabilities: publicized penalties can damage organizational reputation and erode patient trust.

How HIPAA Violations Are Discovered 

HIPAA violations are often discovered through multiple channels. Many come to light when patients file complaints with the OCR about improper disclosures or denial of access to records. Others are detected during routine or targeted audits and investigations by regulators, especially after a data breach or public incident. Health organizations may also detect violations internally through self-audits and proactive monitoring of access logs for suspicious activity.

Additionally, whistleblowers (whether employees or contractors) sometimes report concerns to authorities, leading to formal investigations. Security incidents, such as ransomware attacks or accidental data exposures, frequently trigger post-incident reviews that reveal underlying compliance failures. Regardless of how they are discovered, proactive detection and self-reporting tend to result in less severe penalties.

Types of HIPAA Violations with Examples

Unauthorized Access/Disclosure

Unauthorized access or disclosure occurs when workforce members access, use, or share protected health information (PHI) without a valid work-related purpose or required patient authorization. These violations often result from excessive access privileges, poor access controls, or informal workplace behavior that treats PHI as casually accessible information. Even when no harm is intended, accessing records outside defined job duties still constitutes a violation.

Examples:

• A billing clerk looks up a coworker’s medical record out of curiosity, despite having no role in that patient’s care.
• A nurse emails a patient summary to a personal email account to finish charting at home.
• A receptionist verbally confirms a patient’s diagnosis to a family member without verifying authorization.
• An employee accidentally sends lab results to the wrong patient due to an auto-filled email address.

Security Failures

Security failures involve breakdowns or gaps in technical or physical safeguards designed to protect PHI from unauthorized access, alteration, or loss. These failures typically stem from weak security configurations, outdated systems, or missing protections on devices and infrastructure that store or transmit PHI. Many are discovered only after an external incident exposes the underlying vulnerability.

Examples:

• A clinician’s unencrypted laptop containing patient records is stolen from a car.
• A cloud storage folder with PHI is left publicly accessible due to a misconfigured access policy.
• An organization continues using unsupported operating systems with known security flaws.
• Shared workstations remain logged in, allowing unauthorized users to view patient information.

Improper Disposal

Improper disposal occurs when PHI is discarded without being rendered unreadable and unrecoverable. This applies to both physical records and electronic media, including paper files, hard drives, backup tapes, and removable storage. Disposal violations are often the result of informal cleanup practices or the absence of documented destruction procedures.

Examples:

• Paper intake forms containing patient identifiers are thrown into regular trash instead of shredded.
• A copier with an internal hard drive is returned to a leasing company without data removal.
• Old USB drives used for record transfers are discarded without secure wiping.
• Retired servers are sold to a recycler without verifying data destruction.

Lack of Training/Policies

Lack of training or inadequate policies lead to violations when employees do not understand how HIPAA applies to their daily work. Without clear guidance, staff may make incorrect assumptions about permitted disclosures, security responsibilities, or incident reporting. Over time, outdated or undocumented policies create inconsistent practices across departments.

Examples:

• New hires receive system access before completing privacy and security training.
• Staff share patient information through consumer messaging apps because no policy prohibits it.
• Employees fall for a phishing email due to lack of security awareness training.
• Departments follow conflicting procedures for handling breach notifications.

Patient Rights Issues

Patient rights issues arise when organizations fail to meet HIPAA requirements related to individual access, amendments, and transparency. These violations are often procedural rather than technical, involving delays, denials, or incomplete responses to patient requests. Regulators frequently scrutinize these failures because they directly affect patients’ legal rights.

Examples:

• A clinic takes several months to provide records after a patient submits a written access request.
• A provider refuses to correct an obvious error in a patient’s medical history without explanation.
• An organization cannot produce an accounting of disclosures when requested.
• Privacy notices are outdated and do not reflect current data-sharing practices.

7 Operational Best Practices to Prevent HIPAA Violations 

Here are some of the ways that organizations can better avoid violations of the Health Insurance Portability and Accountability Act.

1. Isolate PHI on BYOD and Contractor Devices 

Allowing employees and contractors to use their own devices introduces risks that can lead to HIPAA violations, particularly when those devices are unmanaged or shared, unless you utilize the right solution that ensures security. To minimize exposure, organizations can use technology that creates a distinct, controlled environment on the user’s PC or Mac. For example, secure enclave technology ensures work applications and data are encrypted and isolated from the rest of the device, preventing accidental or unauthorized access to PHI.

This approach enables healthcare organizations to support BYOD while maintaining compliance. Sensitive data never leaves the secure workspace, and personal activity outside of it remains private. Unlike traditional virtual desktop infrastructure (VDI) or full device lockdown, secure enclaves run apps locally and don’t require hosting or complex infrastructure. This reduces IT overhead while preserving user experience and privacy.

2. Conduct and Update Enterprise Risk Analysis on Change and Annually

HIPAA’s Security Rule requires covered entities and business associates to perform an accurate and thorough risk analysis both annually and whenever significant operational changes occur. This analysis involves identifying, evaluating, and documenting risks to electronic PHI across systems, workflows, and third-party connections. The findings help inform where controls need to be strengthened and which vulnerabilities present the highest likelihood of exploitation.

Each change in the IT environment, such as new software implementation, mergers, or vendor onboarding, should trigger an updated review. Documentation must include mitigation strategies and assign accountability. Routine and responsive risk analysis is foundational for preventing HIPAA violations by ensuring compliance efforts keep pace with a changing threat landscape.

3. Enforce Role‑Based Access with Break‑Glass Controls and Audits

Role-based access control (RBAC) enforces the principle of least privilege, ensuring users can only access PHI needed for their job. This is implemented by mapping roles to specific permissions and regularly reviewing access rights to prevent privilege creep. In high-risk or emergency situations, break-glass controls allow temporary access to restricted information, but every use is logged for post-event auditing.

Auditing access events is essential for detecting inappropriate behaviors, such as staff browsing patient records without a valid reason. Automated alerts and regular reviews of audit logs deter misuse and provide evidence in the event of an investigation. Well-defined RBAC policies, combined with break-glass mechanisms and thorough monitoring, establish a strong framework for both compliance and operational integrity.

4. Encrypt Everywhere and Ban Personal Email/Storage for ePHI

Encryption is a critical control for HIPAA compliance, required for both data at rest and in transit. By encrypting PHI everywhere (on servers, endpoints, mobile devices, backup media, and all network connections) organizations greatly reduce exposure in the event of a device loss or network breach. Encryption ensures that even if data is intercepted or stolen, it remains unusable to unauthorized parties.

Banning the use of personal email accounts or storage services for transmitting or storing electronic PHI (ePHI) closes a common loophole exploited in many breaches. Outreach and enforcement are key; organizations should leverage technical controls to block unauthorized channels and provide secure alternatives. Training must reinforce this policy, and regular audits should check for rogue usage. 

5. Execute BAAs, Maintain a Vendor Inventory, and Tier Risks

Any vendor handling PHI must sign a business associate agreement (BAA) acknowledging their responsibility for HIPAA compliance. Maintaining a comprehensive inventory of vendors, services, and their access to PHI enables organizations to track which third parties pose risks to data security. Organizations should conduct due diligence before onboarding vendors, verifying security posture and contractual terms.

Vendors should be categorized or “tiered” based on risk, such as the type and volume of PHI processed, and the criticality of the services provided. Higher-risk vendors require more frequent assessments and robust oversight. Annual reviews of the vendor inventory, along with routine compliance checks and incident response planning, help minimize the potential for third-party HIPAA violations.

6. Meet Right of Access Deadlines with Standard Request Workflows

HIPAA obligates organizations to fulfill patients’ requests for their health information within strict timeframes. Missed deadlines are one of the most common reasons for enforcement actions. Establishing standard workflows for processing right-of-access requests helps ensure compliance and avoids unnecessary delays. These workflows should include intake, identity verification, record retrieval, and communication steps.

Automating tracking and reminders for pending requests, as well as logging all actions taken, provides both efficiency and an auditable record if compliance is ever questioned. Staff training on right-of-access requirements and regular review of workflow effectiveness can further reduce risk.

7. Log and Alert on VIP/Sensitive Record Access

Monitoring and auditing access to the PHI of VIPs (such as public figures) or sensitive cases (e.g., high-profile medical conditions) is critical to preventing high-impact privacy breaches. Specialized logging mechanisms should flag every access event and trigger alerts for unusual or unauthorized activity. This extra scrutiny deters curiosity-driven browsing, which has led to numerous headline-grabbing violations.

Regular analysis of access logs for these records, combined with clear policies and employee training, reinforces that improper access will be detected and penalized. If a breach is suspected, detailed logs expedite internal investigations and ensure compliance reporting requirements can be fulfilled promptly.

Preventing HIPAA Violations with Venn’s Blue Border™

Deliver secure virtual care without the cost and complexity of VDI. Venn protects patient data on personal and unmanaged laptops used by remote clinicians, contractors, and staff – enabling HIPAA compliance, fast app performance, and full control over PHI.

Similar to an MDM solution but for laptops, work lives in a company-controlled Secure Enclave installed on the user’s PC or Mac, where all data is encrypted and access is managed. Work applications run locally within the Enclave – visually indicated by Venn’s Blue Border™ – protecting and isolating business activity while ensuring end-user privacy. 

With Venn, you can eliminate the burden of purchasing and securing laptops and managing virtual desktops (VDI.) Unlike virtual desktops, Venn keeps users working locally on natively installed applications without latency – all while extending corporate firewall protection to business activity only.

Key features include:

• Granular, customizable restrictions: IT teams can define restrictions for copy/paste, download, upload, screenshots, watermarks, and DLP per user.
• Secure Enclave technology: Encrypts and isolates work data on personal Mac or PC computers, both for browser-based and local applications.
• Zero trust architecture: Uses a zero trust approach to secure company data, limiting access based on validation of devices and users.
• Visual separation via Blue Border: Visual cue that distinguishes work vs. personal sessions for users.
• Supports turnkey compliance: Using Venn helps companies maintain compliance on unmanaged Macs with a range of regulatory mandates, including HIPAA, PCI, SOC, SEC, FINRA and more.