Cybercriminals set their sights on the health-care industry in 2015, when it became the most frequently attacked industry and the industry to face the most severe financial consequences when an organization is attacked, according to a report by IBM.
Five of the eight largest health-care security breaches since 2010 occurred during the first six months of 2015, the IBM 2016 Cyber Security Intelligence report said. The increase in attacks made health-care the most frequently attacked industry in 2015, when over 100 million health-care records were reportedly compromised.
The average cost of a data breach at a health-care organization in the U.S. could cost as much as $398 per stolen record, compared to the average cost across industries of $217 per stolen record, according to a separate report by IBM and Ponemon Institute.
Health-care records are uniquely valuable on the black market since they contain information that can remain valid for decades such as credit card data, email addresses, social security numbers, employment information and medical history.
In 2015, 60 percent of cyberattacks (both intentional and inadvertent) were carried out by those with insider access to an organization’s systems, the report said.
Insider attacks carried out by inadvertent actors decreased from nearly one-half in 2014 to one-third in 2015, which could signal more organizations are implementing security policies and employee education, it said.
Data Breach Expenses
IBM said that detection and escalation costs increased dramatically from $0.42 million in 2014 to $0.61 million in 2015, according to the 2015 Cost of Data Breach Study. Detection and escalation includes forensic and investigative activities, assessments and audit services, crisis team management and communications to executive management and board of directors.
Additional data breach costs include lost business revenue, notification services and remediation, all of which increased in costs in 2015, IBM said.
Considering the volume of cyberattacks, healthcare organizations should take proactive measures outside of compliance requirements to mitigate the effects of a cyberattack.
The IBM report offered four key steps organizations can take to develop a strategic cybersecurity program:
See related story, FBI: Health-Care Data Uniquely at Risk From Cyberattack.
Design benefit plans and respond quickly and confidently to a range of potential issues with a free trial to the Benefits Practice Resource Center.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to email@example.com.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to firstname.lastname@example.org.
Put me on standing order
Notify me when new releases are available (no standing order will be created)