Tech behemoth Facebook’s FB escalating privacy problems have brought the need for cybersecurity to the forefront. In fact, CEOs of Amazon, AT&T and IBM have urged congressional leaders through a letter to fast-track consumer privacy legislation into law. Not just tech, data breaches have wreaked havoc on other sectors, keeping potential investors at bay.
Healthcare: A Soft Target for Data Breach
The investment world is growing edgy about putting money into the global healthcare industry that has been a major target for hackers and cybercriminals, thanks to the increasing use of wireless, Internet-and-network connected devices, portable media and electronic health records (“EHR”). Resultantly, Health Canada’s guidance on premarket requirements for medical device cybersecurity was issued in June. Also, Australia’s Therapeutics Goods Administration issued its own medical device cyber security guidance for the industry in July.
The situation within the U.S. medical device industry is no different. In May, 12 million patients of lab testing giant, Quest Diagnostics DGX faced a data breach, whose Social Security Numbers and medical information were illegally accessed for eight straight months. Earlier, Anthem ANTM was slapped with a penalty of $16 million after a data breach that hit nearly 79 million people.
Fierce Healthcare opines that a healthcare data breach costs a hefty $6.5 million on average. In fact, IBM Security’s 2019 data breach cost report states that healthcare organizations continue to bear the highest costs associated with data breaches. more