The healthcare industry is facing a host of cyber security issues, which has the financial and reputational impact for hospitals and other healthcare institutions. In recent years, the healthcare industry has been under attack by cyber criminals looking to profit from stolen private and confidential information culled from medical records.
Your clients’ in the health care industry are extremely vulnerable to attacks and need data breach insurance as a way of protecting themselves with first party coverage, as well as third party coverage in the event of a lawsuit.
It’s no secret that data breaches have cost the healthcare sector billions of dollars already, a number that will most certainly continue to rise. The fact is that nearly 8 out of 10 healthcare institutions have been hit with two or more data breaches dating back to 2014. Moreover, nearly half of all healthcare institutions have been affected by more than five breaches since that time.
Most healthcare institutions unprepared for an attack
According to Symantec, a leading enterprise security vendor, healthcare companies are notorious for their limited investments in cyber security. This makes them a welcome target for hackers and cyber thieves. Healthcare institutions have been notorious for under spending on cyber security programs in recent years, but the tide may be changing.
According to the Federal Bureau of Investigation, electronic health records (EHR) are far more valuable than financial data. EHRs can sell for as much as $50 in the black market, compared to less than five dollars for a stolen social security number or credit card number.
The reason being is that EHRs are deemed more valuable because they’re more difficult to detect. Plus, EHR theft takes almost twice as long as normal identity theft to be determined. Unlike stolen credit cards, which can be canceled, and fraudulent charges that can be disputed, medical identity theft is a more complex issue and thus very difficult to resolve.
Cyber criminals have also resorted to using certain malware to infect a healthcare organization’s IT system, preventing the company from accessing certain files or sectors until a ransom demand is met. With so many concerns and so much at stake, your clients would be wise to secure data breach insurance as a way of combating these problems when they occur.