IBM 2016 Cost of Data Breach Study

by Larry Emmott on July 5, 2016

in Security

American CurrencyThis year’s study found the average consolidated total cost of a data breach grew from $3.8 million to $4 million. The study also reports that the average cost incurred for each lost or stolen record containing sensitive and confidential information increased from $154 to $158.

Source: IBM 2016 Cost of Data Breach Study – United States

To put this in perspective for dentistry. If you have 2500 patients in your data base and your server is compromised the cost to you will be $158 * 2500 = $395,000.

Very little if any of that $395,000 will be covered by insurance. The costs include regulatory compliance, legal fees and costs to communicate with patients.

If the breach triggers an audit you could face additional costs in the form of fines which start at $100 per record. $100 * 2500 = $250,000.

Again insurance does not cover fines.

Most (62%) of medical / dental data breaches are theft or loss of a computer, not a cyber attack. The single best thing you can do to protect your self is to lock up the server and encrypt your data.

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