Pharmaceutical cybersecurity under attack: Best practices to protect your data

The pharmaceutical industry offers endless targets for cyber criminals. From medical device data and trial outcomes to drug formulas and employee credentials, companies must secure a dizzying amount of information.

That’s why medical device cybersecurity is becoming a crucial focus area—connected medical technologies can introduce vulnerabilities if not properly secured. Data security failures can threaten drug approvals and compromise regulatory compliance. So, how can pharmaceutical companies respond?

This article will explore the cybersecurity challenges pharmaceutical organizations face and suggest best practices to overcome them. With the right cybersecurity solutions, you can avoid breaches and remove critical risks from the drug development pipeline.

The importance of cybersecurity in the pharmaceutical industry

Pharmaceutical companies should treat cybersecurity as a critical business priority. Few sectors are as vulnerable to organized criminal attacks, and successful data breaches can be financially devastating.

Criminals target pharma companies because they generate and store extremely valuable data. For example, pharmaceutical laboratories maintain extensive intellectual property archives and project data. Competitors will pay high prices on the dark web to obtain that data.

Bad actors use financial and client data in phishing attacks or blackmail strategies. Identity thieves target data about clinical trials and patients. Moreover, pharma companies often use multiple third-party vendors in their research work—adding extra points of vulnerability.

The pharmaceutical industry needs robust cybersecurity to protect its research and sensitive data. Otherwise, companies risk breaching patient safety, losing valuable intellectual property (IP), and facing rising ransomware payments.

Critical cybersecurity risks faced by the pharmaceutical industry

Pharmaceutical companies cannot afford to neglect cybersecurity.

According to IBM's annual data breach report, data breaches in the pharmaceutical industry cost $5.01 million on average. In the related healthcare sector, the average cost is $9.77 million. Both numbers are above the overall average, reflecting the high value of medical data.

The stats are cause for concern, but they don't tell the whole story. For instance, the damage from a 2017 data breach eventually cost Merck & Co. over $870 million (due to production downtime and lost sales).

The context of cyber threats is also changing, as R&D costs spiral. The cost of bringing a drug to market rose from $2.12 billion in 2023 to $2.23 billion in 2024. As a result, proprietary data is more valuable than ever.

It's important to understand how criminals target pharmaceutical infrastructure. Before discussing solutions, let's dive into how critical cyber threats apply to pharmaceutical companies.

Phishing attacks

Phishing attacks use persuasive emails, text messages, or voice messages to convince targets to take risky actions.

For example, phishers posing as trusted clients could persuade account managers to download a malware-infected attachment. Other phishing attacks direct victims to websites containing fake forms that harvest contact details and login credentials.

Phishing affects all industries but is especially damaging for pharmaceutical companies. Credential theft can enable access to IP libraries, trial results, or patient data. Secondary attacks like ransomware or surveillance can result from malware downloads—making robust anti-phishing training essential.

Intellectual property theft

Pharmaceutical companies rely on data security to protect intellectual property such as trial results, medical formulas, and research data. For many businesses, losing IP is a disaster—made worse if competitors obtain and exploit stolen information.

Additionally, intellectual property breaches at the wrong time can delay drug approval, potentially leading to financial losses. Theft can also lead to the appearance of counterfeit branded drugs, compromising a pharma brand's global reputation.

Ransomware

Ransomware attacks encrypt targeted systems and data. Attackers maintain control of sensitive data until their victims make ransom payments or comply with other demands. Even if victims pay, criminals often sell data via dark web marketplaces.

The pharmaceutical industry faces acute ransomware risks. Focused attacks can lock down ongoing research data—effectively freezing drug development. For example, many pharma companies suffered ransomware incidents while developing COVID-19 vaccines.

Insecure industrial control systems

The pharmaceutical industry depends on control systems and operational technology to govern production facilities and ensure compliance with quality-control regulations. Cyber-attacks on manufacturing systems can compromise production lines, leading to lengthy downtime or—worse—faulty and dangerous products.

Managing third-party vendors

Supply chain attacks are becoming more common, particularly in the pharmaceutical industry. Pharma companies rely on collaboration between drug companies, research institutions, medical device manufacturers, and digital service providers. Each partner could become a cybersecurity liability.

Security failures at a single company can cascade through partners, with damaging results. Vendors may lack adequate access controls or introduce endpoint vulnerabilities. Robust vendor risk management is essential.

Vulnerable IoT infrastructure

The health and pharma sectors use Internet-of-Things (IoT) technology to monitor production, automate lab research, run clinical trials, and operate medical devices. However, IoT devices may lack encryption or run obsolete operating systems that carry exploit risks.

Companies need security solutions that cover all Internet-of-Things deployments and monitor security in real time. Without these measures, scaling up IoT usage increases data breaches and DDoS risks.

Employee negligence and insider threats

Pharmaceutical organizations must guard against cybersecurity threats from within, just like other companies.

Unintentional security failures, such as weak passwords or lax device security, can enable access to research data. However, intentional insider attacks are potentially more damaging.

Malicious insiders exploit their trusted status to steal IP. They roam freely within networks, extracting drug formulas and trial results to benefit outsiders. That's why companies need Zero Trust security solutions to limit user privileges and restrict the scope for insider cyber-attacks.

Digital transformation risks

The pharmaceutical industry is dynamic and innovative. Updating technology is vital to remain competitive, but accelerated digital transformations bring cybersecurity risks.

Rapid shifts to cloud collaboration, IoT medical devices, remote access technologies, and AI-based research tools can expand the attack surface. New tech may function alongside legacy OT systems, complicating security and opening the door for exploit attacks.

Mergers and acquisitions

Large-scale pharmaceutical companies routinely acquire smaller organizations such as medical device manufacturers or drug development start-ups. However, mergers require careful risk management.

Pharmaceutical mergers integrate IT platforms and data storage systems—potentially raising data exposure risks during transitions. Failed integration processes can also miss cybersecurity vulnerabilities, adding attack routes for data thieves enabled by the merger.

Cybersecurity 10 best practices for pharmaceutical companies

Cybersecurity is a complex challenge for the pharma industry, but there are ways to counter cybersecurity threats and strengthen your data security posture.

1. Use network segmentation to protect critical data

Network segmentation creates secure zones for critical data and applications. These zones are protected by firewalls and are only accessible to authorized users. If attackers gain access, segmentation confines them and prevents lateral movement to other resources.

2. Encrypt data at rest and in transit

Encryption is a vital step in preventing data breaches. Ideally, pharmaceutical companies should encrypt all trial data, client records, and intellectual property. Encryption should apply to on-premises servers and cloud deployments.

Encryption in transit via VPNs or encrypted email protects the data employees transmit. Shield collaboration tools and require encrypted transmission for sensitive files.

3. Implement robust access controls

Access is a critical vulnerability for pharmaceutical companies. Start by safeguarding critical assets with Identity and Access Management (IAM) systems. IAM tools assign privileges to users based on their roles and needs. Security teams should enable access to essential resources but apply Zero Trust principles to limit access to other network assets.

Multi-factor authentication (MFA) should protect research portals and cloud containers holding trial data. MFA requires more than one unique credential for each login, ensuring that attackers with stolen credentials cannot access network resources.

4. Ensure secure remote access to employee workloads

Remote work is becoming a common part of working life for pharma researchers and technicians. Many clinical trials also depend on remote access to deliver data or verbal feedback. However, remote connections can be security risks without proper security measures.

Use business VPNs to encrypt remote work connections (alongside authentication and access management tools). Train staff to use approved anti-virus tools and to avoid insecure remote settings like public Wi-Fi.

5. Implement threat monitoring to detect cyber threats

Security teams need to detect cyber threats in real time. Intrusion Detection Systems (IDS) track endpoints and operating systems, looking for malware signatures or unusual user behavior. Alerts identify anomalies promptly, allowing security teams to triage threats and take appropriate action.

Pharma companies should also implement granular detection tools for high-value data. Data Loss Prevention (DLP) tools notify security teams when users move, delete, or amend sensitive data without authorization.

6. Carry out thorough vendor risk assessments

Supply chain attacks can bypass internal security measures and take pharma companies by surprise. Screening third-party vendors helps avoid this problem. Check their processes for handling data, preventing cyber attacks, and maintaining privacy.

For example, trials may rely on medical device manufacturers for wearables or sensors. These devices should feature updated firmware and enable encryption of data in transit.

Check the compliance status of vendors as well. If partners lack HIPAA or GDPR-compliant cybersecurity solutions, consider alternative providers.

7. Secure and monitor IoT deployments

IoT is another critical weak spot for the pharma industry. As IoT device communities grow, maintain a dynamic inventory—including details about security risks for all lab sensors or medical devices.

Apply strong authentication and encryption to high-risk IoT devices and integrate devices into patch management strategies. Remember: criminals monitor IoT lifecycles and exploit end-of-life firmware. Replace obsolete devices before they enable data breach attacks.

8. Audit your operational security posture

Pharma companies must protect production and research facilities against threats to OT systems. Device security is critically important. Only allow the use of approved medical devices, and prohibit USB storage equipment (a common source of malware infections against operational technology).

ICS cybersecurity for pharmaceuticals should also track firmware and product lifecycles. Integrate SCADA/ICS systems into patch management strategies, as control systems are often prone to exploit attacks.

9. Backup operational data and create a functional incident response plan

Data backups are essential to mitigate ransomware risks. When ransomware attacks happen, companies without recent backups struggle to restore systems. As a result, drug trials falter and approval times rise.

Backups should be a core part of incident response plans. Create streamlined plans to assess incidents, protect sensitive data, notify stakeholders, and counter cyber-attacks. Test the plan frequently to verify its effectiveness and train participants to understand their roles.

10. Train employees to counter phishing risks

Finally, train staff to understand cybersecurity risks. For example, pharmaceutical researchers must know how to identify phishing emails. They should understand how criminals steal identities, create fake websites, and pressurize targets to take risky actions.

Alongside phishing training, explain the importance of authentication, secure remote work practices, and how to minimize data breach risks. Refresh training annually, integrating new threats or security themes as necessary.

Tips for pharma companies to comply with international data security regulations

Data security is part of the cybersecurity puzzle for pharmaceutical organizations. Pharma companies also navigate a demanding regulatory compliance landscape, and regulatory requirements strongly influence cybersecurity solutions.

Here are some tips to ensure compliance and pharmaceutical data protection:

• Assess your data residency requirements—Data residency refers to following local standards for data privacy and security. Assess where you collect and store data. Your compliance strategy should consider regulations in all relevant jurisdictions.
• Protect Personal Health Information (PHI)—HIPAA requires pharmaceutical businesses in the US to protect patient data from cyber-attacks and unlawful disclosure. Apply strong encryption to critical data and integrate data protection into Business Associate Agreements (BAAs).
• Create GDPR-compliant consent systems—The European GDPR focuses on gaining consent to collect, store, and share patient data. Encrypt data to ensure privacy, minimize data collection where possible, and use Standard Contractual Clauses (SCCs) to safeguard cross-border data transfers.
• Follow in-country data requirements—Pharmaceutical companies must understand local data security regulations, in addition to those in the EU and the USA. For instance, China's Data Security Law requires companies to store all data from Chinese subjects within China unless they obtain permission from regulators.
• Understand notification periods—Regulations vary according to response times. For example, the GDPR gives companies 72 hours to report data breaches. By contrast, HIPAA allows 60 days. Response requirements also differ, making it important to develop separate response plans for different jurisdictions.

Dark Web marketplaces & stolen pharmaceutical data

What does the future hold for cybersecurity in the pharmaceutical industry? If current trends are reliable guides, detecting data breaches on the dark web will be a critical challenge.

The dark web is where criminals sell stolen data and monetize their attacks. Figures vary, but the estimates suggest medical records sell for $60 on underground marketplaces, making them more lucrative than other classes of personal data.

Criminals are also increasingly targeting trial data. A recent investigation found data from 1.6 million trial participants for sale on the dark web. Data included patient names, physicians, treatments, medical conditions, addresses, and even adverse vaccine responses.

Leaks like that are catastrophic for patient safety and corporate reputations. Fortunately, cybersecurity solutions are available.

Threat intelligence tools like NordStellar scan dark web marketplaces for stolen data. Companies can use dark web monitoring tools to detect breaches and take action to protect user accounts or notify individuals.

Pharma companies without dark web scanning lack visibility. They won't know if criminals have obtained login credentials, exposing networks to secondary attacks. Next-generation scanning tools solve this problem. NordStellar also comes in a bundle deal with NordLayer, reducing the cost of threat management solutions.

Cure your cybersecurity concerns with NordLayer's help

The pharma industry cannot afford to cut corners on cybersecurity. Lax data security leads to approval delays, production downtime, regulatory penalties, and reputational damage. NordLayer's healthcare cybersecurity solutions can help you avoid these outcomes.

Our tools enable data protection via network segmentation, MFA, and smart remote access controls. Security teams can assign users the privileges needed for essential tasks while blocking access to other network assets.

Secure remote access tools based on AES-256 and ChaCha20 encryption protect remote trials and telemedicine from snoopers, while employees can safely access centralized workloads. Companies can operate flexible work patterns without risking data breaches.

Our security tools extend seamlessly to cloud deployments and IoT devices. They also combine with NordStellar to inform security teams about dark web activity.

NordLayer's healthcare cybersecurity solutions are ideally suited to today's pharma industry. To find out more, contact the NordLayer team today.