IBM: The average cost of a healthcare data breach up to $6.5M

Jackie Drees - Print  | 

Data breaches have increased by 12 percent within the past five years, with the healthcare industry experiencing the highest costs at $6.5 million on average per breach, according to IBM Security's recent report

For the IBM Security-sponsored 2019 Cost of a Data Breach report, Ponemon Institute conducted interviews with more than 500 global companies that suffered a data breach in the past year. The study accounts for cost factors such as legal, regulatory and technical activities.

Five report insights:

1. Since 2014, the cost of a data breach has increased 12 percent at $3.92 million on average.

2. For the ninth consecutive year, healthcare organizations had the highest cost of a breach at $6.5 million on average, which is more than 60 percent above the average cost for other industries examined in the study.

3. Data breaches cost companies approximately $150 per record that gets compromised.

4. More than 50 percent of data breaches in the report were the result of malicious cyberattacks, which cost the companies $1 million more on average than breaches originating from accidental causes.  

5. While approximately 67 percent of data breach costs were realized within the first year post-breach, 22 percent accrued during the second year followed by 11 percent more than two years later.

To access the full report, click here.

More articles on cybersecurity:
Cancer Treatment Centers of America alerts 3,900 patients of data breach
Texas pathology group alerts 46,500 patients of data breach
Hackers try to reroute payroll deposits at Texas health system

© Copyright ASC COMMUNICATIONS 2020. Interested in LINKING to or REPRINTING this content? View our policies by clicking here.

To receive the latest hospital and health system business and legal news and analysis from Becker's Hospital Review, sign-up for the free Becker's Hospital Review E-weekly by clicking here.