Average Cost of a Data Breach

Average Cost of a Data Breach


Published: August 20th, 2019

A recent report published by The Poneman Institute/IBM Security released a comprehensive analysis of data breaches reported in 2018. The report indicated that data breach costs have continued to increase, with healthcare organizations experiencing the costliest cases.

Below are a few highlights from the report:

  • Globally, the average costs of data breaches have increased by 12%, with an average cost of $3.92 Million.
  • The average breach size totals 25,572 records.
  • Average cost per breached record is $150.
  • The average cost of a data breach in the US is $8.10 Million or $242 per record.
  • Globally, the average cost of a healthcare data breach totals $6.25 Million.
  • The healthcare industry has the highest breach costs. Averaging 65% more than data breaches in other industry sectors.
  • The average cost of a healthcare data breach in the United States is $15 million.
  • The average cost of a healthcare data breach has increased from $408 per record last year, to $429 per record.  
  • The average loss of customers following a data breach is 3.9%. However, for healthcare organizations, this number can be significantly higher.

The report also identified several factors that can reduce the cost of a data breach. Most importantly, a rapid breach response dramatically reduces overall costs.

  • The first step to lowering the cost of a breach is to form an incident response (IR) team.
  • Companies that formed an IR team, developed an IR plan, and tested that plan, reduced their breach costs by an average of $1.23 million.
  • The average time from breach to discovery was 279 days. Companies that identified and remediated the breach inside 200 days saved an average of $1.2 million.

For questions regarding your breach response plan contact the experts at MedSafe. MedSafe is the nation's leading one-stop resource for outsourced safety and health compliance solutions in healthcare.

Toll-free: (888) MED-SAFE

www.medsafe.com

 

References:

https://www.hipaajournal.com/2019-cost-of-a-data-b...


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