News

Data breaches prompt healthcare industry to take action

After getting hit by data breaches, the healthcare industry is taking steps to ward off network intrusions and malware attacks. Following the results of a Ponemon Institute study that found 94 percent of healthcare organizations experienced at least one breach over the last two years and 45 percent of healthcare organizations dealt with more than five breaches during the same period, those within the industry and others like it are taking steps toward keeping sensitive information safe.

The cost associated with data breaches is steep and in the case of healthcare providers, it has an exceptionally adverse effect on the consumer. In a report statistic cited in Healthcare Finance News, the average data breach cost for healthcare last year was $2.4 million a slight increase from the year before.

"Say the average hospital operating margin in 2012 was 2.5 percent. For every dollar you lose on bottom line, you have to make $40 on the top line to replace it. So in reality, your $2.4 million cost for a breach is potentially costing your organization $96 million," said security expert Michael "Mac" McMillan.

According to the study, data breach incidents among all industries surveyed cost U.S. companies $204 per compromised customer record in 2009, compared to $202 in 2008. While some good news can be found in an overall drop in the number of reported breaches, the cost in responding to incidents has increased.

Proactive safeguards
As long as valued sensitive information exists, thieves will continue finding ways to develop more sophisticated ways to steal it. Fortunately, there are steps that can reduce the risk of cybercriminals' accessing valuable assets:

  • Keep tabs on devices - Regularly maintaining an inventory of devices and to whom they are assigned can go a long way to identifying the problem before it actually becomes one.
  • Establish a defined set of users and permissions - Sensitive information is often on a need-to-know basis. Segmenting user groups and setting access restrictions drastically narrows the field from which hackers can find an easy target.
  • Put together a data breach plan - No one wants to endure an emergency. What separates those who manage crisis well from those who do not is determined by the plan put in place to coordinate the response to a possible scenarios and its contingencies.
  • Have capable IT staff - Competent IT is an asset for any business. Having an IT staff with thorough  knowledge of computer security and safeguards to protect vulnerabilities is even more valuable.
  • Cryptography - Even the most diligent IT policies designed to restrict unauthorized access to a network are useless unless network communications and hardware contain the most up to date encryption standards.

Whether it be the healthcare industry or a small business, advanced encryption  and SSL certificates can provide a high level of security. Stop by Thawte today and get the latest in SSL.

corporate office

Thawte
The Gateway
Century Lane
Century City, 7441
Cape Town
South Africa

Postal Address:
P O Box 15986
Panorama 7500
Cape Town
South Africa

Call: +27 21 819 2200
Fax: +27 21 819 2950