3 Industries With the Most Costly Data Breaches
Data breaches are going to be costly for any organization hit by one. Sometimes, that cost can be calculated in work hours put toward repairing or retrieving the data, but whatever the method, dollar signs can be attached to any large breach. With cybersecurity awareness growing, and years of cyber-attack data to evaluate, it is becoming more clear which industries stand to lose the most in an attack.
The cost of data recovery following a breach is only one part of the real costs of a data breach. Losing data, having vulnerable private information, and being at risk for data manipulation are all threats that any organization must take seriously.
The Ponemon Institute has studied the ramifications of data breaches for years, and in 2016, they released another study which showed in high detail which industries lost the most. This recent study was a bit of a revelation as the specific and precise numbers were staggering. The institute created their results based on a dollar amount for each record lost or breached, and that average amount was a whopping $158.00 (USD) in 2016. But, that average was quite a bit higher for these three common industries at the top of the Ponemon Institute's study.
1. Healthcare: Average cost per record - $355.00
Many of the factors associated with the high cost per record average in the healthcare industry are due to governmental fines and penalties for losing data. HIPAA regulations make it absolutely vital that those who handle healthcare data secure the information rigorously.
2. Education: Average cost per record - $246.00
Personal information (from test scores to medical records) can be at risk, making the cost per record high. Interestingly, the study did note that the education industry is at a lower risk for losing customers due to data breaches. This may have to do with how deeply interconnected the education industry and its consumers are.
3. Finance: Average cost per record - $221.00
The financial industry has a bevy of fines and regulations that hit hard if data is breached, much like healthcare. Finance is also heavily weighted by the trust in information security; customers losing this confidence dramatically hurts any financial organization.
Cybersecurity awareness is a good starting point for any industry trying to avoid the exorbitant costs associated with data breaches. Most industries are already well into preparedness and security, but more can be done. Having useable and intuitive communication software platforms, like those offered by NC4, can be very valuable when weighed against the cost of losing data.
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