Measuring the Cost of Health Care Data Cyberattacks

Cyberattacks on the health care sector are on the rise, with the average breach cost reaching $11 million, making it the costliest sector for cyberattacks, primarily driven by ransomware and phishing tactics. 

“The global healthcare sector experienced a staggering 1613 cyberattacks per week between Q1 and Q3 2023, nearly 4 times the global average, and a significant increase from the same period the previous year, according to a KnowBe4 report,” shared Healthcare Finance. 

Health care organizations are facing a steep rise in cyberattack costs. Ransomware attacks have been the dominant threat, accounting for over 70% of successful cyberattacks on health care organizations in the past 2 years. Phishing and social engineering tactics are commonly used to initiate cyberattacks, with estimates suggesting that 79% to 91% of attacks begin this way. Large health care organizations have a 51.4% likelihood of falling victim to phishing emails, giving cybercriminals a high chance of breaching these institutions.

Health care organizations face a significant threat from cybercriminals due to the vast amount of sensitive data they collect and process. The risk of regulatory fines and lawsuits related to data breaches allows attackers to demand large ransoms, leveraging the consequences of potential leaks. The high number of network-connected devices and computer systems in the health care industry, combined with the volume of attacks, poses a concerning future for health care data security.

Recently, Change Healthcare, Ascension, and Kaiser Foundation Health Plan have been targeted by cyberattacks with far-reaching consequences that are likely to persist as new breaches occur. Ransomware attacks pose significant safety concerns for patients and employees and should be treated as such. It is crucial for health care organizations to assess their specific risks, focus on human risk factors, and have robust incident response plans in place to protect against cyber threats and ensure quick recovery in case of an attack.

Reference
Eddy N. Healthcare cyberattacks are costing an average of $11 million per breach. Healthcare Finance. Published June 24, 2024. Accessed June 26, 2024. https://www.healthcarefinancenews.com/news/healthcare-cyberattacks-are-costing-average-11-million-breach