What Happens If Someone Violates HIPAA?

Violating HIPAA can result in severe civil and criminal penalties, including fines up to $1.5 million per year, corrective action plans, and even imprisonment. To stay HIPAA compliant and protect sensitive information, healthcare providers need secure communication tools like Fax.Plus, a HIPAA-compliant cloud fax solution trusted by hospitals and clinics worldwide.

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Understanding HIPAA Violations

HIPAA protects patients' private health information (PHI), ensuring it remains confidential, secure, and accessible only to authorized individuals. If healthcare providers don't follow HIPAA rules, they risk serious legal consequences.

Types of HIPAA Violations

How Violations are Reported

Patients, healthcare workers, or audits can identify HIPAA violations, which are usually reported directly to the Office for Civil Rights (OCR) via an online form. After receiving a report, the OCR investigates by reviewing compliance, privacy, and security practices to determine if rules were broken. Violations can result in penalties and required action plans to fix issues.

In one instance, a secretary mistakenly sent patient information to the wrong number. The supervisor quickly notified the compliance department, which informed the OCR. The secretary received a written warning and attended additional HIPAA training. The CEO personally contacted the affected patients to explain the error.

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Civil and Criminal Penalties for HIPAA Violations

Civil Penalties  (up to $1.5M/year)

HIPAA civil penalties per violation have four levels, based on severity:
  • Unknowing Violations: $100–$50,000

  • Reasonable Cause (without neglect): $1,000–$50,000

  • Willful Neglect (corrected within 30 days): $10,000–$50,000

  • Willful Neglect (uncorrected): $50,000+

Criminal Penalties

HIPAA violations become criminal when they're intentional, malicious, or involve personal gain:

  • Knowingly violating HIPAA: Up to $50,000 fine and 1 year in prison.

  • Violating under false pretenses: Up to $100,000 fine and 5 years in prison.

  • Intent to sell or cause malicious harm: Up to $250,000 fine and 10 years in prison.

How to Prevent HIPAA Violations

Staying compliant is crucial. With the right tools and training, healthcare providers can protect their patients and their practice from costly and damaging HIPAA violations.

Using Fax.Plus, HIPAA compliant fax service

Using a secure, HIPAA-compliant fax service such as Fax.Plus greatly reduces risks. Fax.Plus provides secure, encrypted communication channels designed specifically to meet HIPAA guidelines, ensuring your healthcare practice remains compliant and secure.

Employee Training and Awareness

Regular staff training ensures everyone knows how to handle patient information correctly. Training helps employees identify risks and avoid common pitfalls.

Implementing Robust Security Measures

Secure patient data by using encrypted digital solutions, secure passwords, and limiting access to PHI. For fax communications, choosing a secure solution like Fax.Plus ensures your patient data remains protected.

Regular Compliance Audits and Risk Assessments

Regular audits and assessments help identify and fix vulnerabilities before they become serious issues. Providers should regularly review policies, train employees, and update technology.

Why Fax.Plus Is a Safer Choice for Healthcare

Extremely Secure Solution

Built-in HIPAA Compliance

Fax.Plus is designed as a HIPAA compliant faxing solution with multiple layers of protection. Fax.Plus provides a signed BAAs with enterprise accounts.
All Fax Functions In Your Own App

Access to PHI Records

Streamline record management by accessing audit trails of sent faxes. Easily search your archive using dedicated notes to find stored faxes.
Secure

Secure HIPAA fax

We use strong 256-bit AES encryption for stored documents, with each user having their own unique encryption key.
Keep Your Current Fax Numbers

Easy Workflow for Staff

Our user-friendly apps bypass the complexity of Radiology Information Systems (RIS), Electronic Health Records (EHR), and Practice Management (PM) systems.
Seamless Integrations

Cost Efficiency

Enjoy visibility of all expenses, choosing from various plans tailored to meet admin demands, including options for high-volume needs.
Dedicated Support

Advanced admin controls

Streamline staff management with flexible tools to enhance security, compliance, and operational efficiency.

FAQs

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If you violate HIPAA, the consequences depend on your role and the nature of the violation. For employees of covered entities or business associates, employers typically follow internal sanctions policies, which may include retraining, suspension, or termination. If the violation results in a breach of unsecured protected health information (PHI), it must be reported to the Office for Civil Rights (OCR).
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Yes. Criminal penalties apply when violations are intentional, involve false pretenses, or are committed for personal or commercial gain. Penalties can include up to 10 years in prison and a fine of $250,000. For example, a worker who sells patient records to a third party could face criminal charges.
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Even accidental violations can have consequences. For example, sending patient information to the wrong person by fax or email must be reported to a supervisor or Privacy Officer. Depending on the impact, it may require breach notification to affected individuals and OCR. Prompt reporting and corrective action can mitigate penalties.
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Yes. Covered entities are responsible for ensuring staff are trained on HIPAA policies. If an employee violates HIPAA because they weren’t trained properly, the organization could still be liable and subject to civil penalties. This is why regular, documented training is essential.
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If a healthcare provider fails to protect patient data or restrict access to PHI, they can face financial penalties, a corrective action plan, or civil litigation. The OCR may launch a formal investigation, and penalties will reflect the severity and whether the violation was corrected in a timely manner.
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The Office for Civil Rights (OCR) investigates complaints and enforces HIPAA compliance. They may request documentation, interview staff, and audit policies. State Attorneys General can also pursue violations in court, especially in large-scale breaches affecting many patients.
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OCR starts with the four statutory penalty tiers, then weighs five categories of aggravating or mitigating factors:
  • Nature, scope & duration of the violation (e.g., how many people were affected and for how long).

  • Resulting harm financial, reputational, or barriers to care.

  • Prior compliance history & cooperation with past technical-assistance from OCR.

  • Size/financial condition of the organization (so fines don’t cripple patient care).

  • Whether the lapse was fixed within 30 days, quick remediation can sharply reduce the total.

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When the investigation closes, OCR sends both you and the covered entity a resolution letter. If OCR finds non-compliance, the entity must either:
  • Voluntarily comply

  • Implement a corrective-action plan, or

  • Enter a monetary settlement.

If the organization refuses or falls short, OCR can impose civil money penalties, and the entity may request a hearing before an HHS administrative law judge.
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Yes. Improperly disclosing more PHI than needed is a direct Privacy Rule violation. Consequences typically start with retraining or written warnings, but repeat or egregious offenses can escalate to termination and OCR fines, especially if patients suffer harm.
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Breaches usually surface through a mix of:
  • Internal audits & security monitoring (log reviews, DLP alerts)

  • Employee or patient complaints to the Privacy Officer or directly to OCR

  • Automated breach-detection tools flagging anomalous data transfers or log-ins

  • Regulatory audits (e.g., OCR compliance reviews)

Under the Breach Notification Rule, covered entities must report qualifying breaches to OCR—and often to affected individuals—within strict timelines. Using Fax.Plus’ real-time alerts and immutable audit trail makes unusual fax activity easier to spot early, limiting exposure.
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  • Report immediately to your supervisor or designated Privacy Officer.

  • Provide details (who, what, when, PHI involved).

  • If the organization fails to act or the issue is severe, escalate by filing a complaint with OCR, ideally within 180 days of discovery (extensions possible for good cause).

  • Cooperate with any internal risk assessment or remediation steps.

Early internal reporting often prevents patient harm and demonstrates good-faith compliance, which OCR considers when assessing any penalties.
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Most organizations provide a process for reporting HIPAA concerns, typically involving a supervisor or the designated HIPAA Privacy Officer. If employees feel uncomfortable reporting internally, they can file a complaint directly with OCR via the HHS website, anonymously if needed.
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Yes, Fax.Plus is HIPAA compliant. We understand the importance of safeguarding sensitive medical information. To ensure the highest level of protection maintaining the privacy and security of healthcare data, we have implemented robust security measures and policies that encompass the confidentiality, integrity, and availability of your health information.
Learn more about our approach here.
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Most companies can get up and running within a day. Special circumstances like porting existing numbers into Fax.Plus may take a few days.
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Yes, Fax.Plus is the most secure fax service for small businesses. In today's digital landscape, the security of transmitted information is crucial, Alohi distinguishes itself with its stringent security protocols aimed at safeguarding data integrity and confidentiality. Our dedication to security is reflected in our advanced encryption, robust system architecture, proactive security measures, compliance with international standards, and adherence to Swiss data protection laws, making our medical fax services secure and trustworthy for users globally.

Discover Fax.Plus,
HIPAA compliant fax solution.

Want to see how our cutting-edge faxing solution can help your healthcare organisation?
Schedule a demo and one of our representatives will contact you for a customized demonstration.

DISCLAIMER: The information on this site is for general information purposes only, and Alohi cannot guarantee that all the information on this site is current or accurate. This is not intended to be legal advice and should not be a substitute for professional legal advice. For legal advice, consult a licensed attorney regarding your specific legal questions.