However since no system is perfect laws have to exist to prevent the information from being used by others except as how authorized by the law; examples would be preventing prospective employers from using it to filter candidates, housing agencies would be similar restricted. The same law would put in place a means to force it to be removed from any site hosting the information.
The key take away is we cannot guarantee full protection but we minimize the damage caused
Digital data are immensely reproducible.
Motivated adversaries may be motivated. Ask Dan.
https://www.smithsonianmag.com/history/the-worlds-most-famou...
If you can access it from anywhere (or your healthcare provider, other white hats, etc.), so can the black (or grey, or red, or geen,...) hats.
It even turning into a small-scale extortion scheme seems unlikely. Records are in trash AND someone finds them in trash in the relatively brief period before they wind up landfilled or incinerated, AND they decide to take them and track down the people who they belong to for purposes of extortion? I mean, sure, it could happen, and it's not a good thing for medical records to be in the trash. There are no "guarantees".
Physical records are clearly much much lower risk though.