![]() ![]() What’s more, these data breaches are the most expensive. Malicious attacks come from both outside and inside the organization, ranging from data-stealing malware to social engineering. The significant jump in malicious attacks over the past two years is certainly indicative of the worsening threat environment. This is up from 24 percent in 2009 and 12 percent in 2008. This year malicious attacks were the root cause of 31 percent of the data breaches studied. Malicious or criminal attacks are causing more breaches. Companies that take a more surgical approach and spend the time on forensics to detect which customers are actually at risk and require notification, ultimately spend less on data breaches. This causes customers who are not actually at risk to lose trust in the company and abnormal customer churn increases. Unfortunately, these companies are in such a hurry to do the right thing and notify victims that they end up over-notifying. companies have this urgency to just get the notification process over with. This year, they paid 54 percent more.įueling this rush to notify is compliance with regulations like HIPAA and the HITECH Act and the numerous state data breach notification laws. For the second year, we’ve seen companies that quickly respond to data breaches pay more than companies that take longer. ![]() Rapid response to data breach costs more. In my view, there are a few standout trends. This year’s study showed some very interesting results. It’s not only direct costs of a data breach, such as notification and legal defense costs that impact the bottom line for companies, but also indirect costs like lost customer business due to abnormal churn. The fact is that individuals still care deeply about their personal information and they lose trust in companies that fail to protect it. This year, they reached $214 per compromised record and averaged $7.2 million per data breach event. Cost of a Data Breach report, which was just released today, shows that costs continue to rise. The idea is that data breach notifications will become so commonplace that customers just won’t care anymore.īut, that hasn’t happened yet. “These results demonstrate the heightened impact of cybersecurity breaches, the shifting strategies of malicious actors, as well as how healthcare organizations are grappling with cybersecurity in today’s dynamic, cloud-first world,” explained Bitglass in the report.Most privacy advocates and people in the data protection community believe that data breach costs will start coming down eventually because consumers will become somewhat immune to data breach news. The average cost of a data breach was 10.5% higher than 2019, with the average cost per breached record increasing 16.3% to $499 per breached record. The costs of mitigating healthcare data breaches also increased in 2020. When data breaches occur, it takes healthcare organizations an average of 96 days to discover the breach and an average of 236 days to recover, according to a data breach analysis by the Ponemon Institute/IBM Security. 37 out of 50 states saw the number of data breaches increase from the previous year. While the number of breaches increased, the number of individuals affected by the breaches – 26,435,831 – declined slightly from 2019, falling by a little over 1 million.Ĭalifornia was the worst affected state with 49 incidents reported, although Michigan was the worst affected in terms of the number of records exposed, which was largely due to a 3.3 million-record data breach at Livonia, MI-based Trinity Health. 599 healthcare data breaches were reported by healthcare providers, health plans, healthcare clearinghouses, and business associates of HIPAA-covered entities, with the breach count up 55% on the previous year. There were also increases in the number of unauthorized access/disclosure incidents, loss and theft incidents, and other breach causes.Ģ020 was a particularly bad year for healthcare data breaches. The healthcare records of 24.1 million individuals were exposed in those breaches – 91% of all records breached in 2020. There was a sharp increase in hacking and IT incidents in 2019 and that trend continued in 2020 when 67% of all reported healthcare data breaches were the result of hacking/IT incidents. An analysis of 2020 healthcare data breaches has been conducted by Bitglass that shows the extent to which the healthcare industry was targeted by hackers. ![]()
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