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Cyber Crime Costs More than You Think

sharon-mccutcheon-665638-unsplashThe healthcare sector is under attack from cyber criminals and that’s costing everyone. Some estimates put anticipated cybersecurity spending for healthcare organizations at more than $65 billion between 2017 and 2021.

Data breaches not only put patient information at risk (data can be sold on the dark web), cyber criminals can hold data hostage until a ransom is paid. The costs associated with cyber-crime go well beyond paying for encryption keys so you can get back to work. Here are five of the most impactful ways your company will wind up paying if you suffer a security breach.

1. Customer Service Costs

Reaching out to customers to alert them after an attack isn’t anyone’s idea of fun, but it’s absolutely necessary to let patients know when their data has been compromised. Don’t underestimate how much follow-up is required as you work your way through questions and and concerns from potentially thousands of clients.

2. Compliance Fines

The fines for regulatory non-compliance in the wake of a data breach can be significant. Trying to navigate your way through the legal minefield of non-compliance can mean a mountain of legal fees. Defending yourself in a litigation process can be an expensive proposition and if you are found to be at fault, not only will your insurance likely not cover your losses, you may well find yourself paying compensation to victims.

3. Development and Implementation of Solutions

After an attack, chances are you will fly into action to put into place more effective counter-attack measures. Though this may feel like closing the barn door after the horse is long gone, it’s both necessary and expensive to make changes to your security operations in the wake of a breach.

4. Website/System Downtime

Whenever your system is down it costs money. Recovering from an attack can take far longer than you might think and that can really add up.

5. Lost Customer Trust

It’s hard to put a dollar value on your relationships with your customers. After a cyber attack, your good name will probably suffer. Customers are less likely to give you a good referral and, in the case of a very public attack, your reputation (and company value) will suffer.

When it comes to cyber crime, an ounce of prevention is worth a pound of cure. Come talk to us to see how we can help you assess the weaknesses and strengths of your current security system. If you need to make some changes or improvements, we can help you there, too. Whatever you do, don’t wait and hope for the best: the costs of failing to act are just too high.  

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