Report: Healthcare Cybersecurity Market Growing, Impact of Attacks Estimated at $6B Annually | Healthcare Informatics Magazine | Health IT | Information Technology Skip to content Skip to navigation

Report: Healthcare Cybersecurity Market Growing, Impact of Attacks Estimated at $6B Annually

December 4, 2015
by Rajiv Leventhal
| Reprints

The global healthcare cybersecurity market was valued at $5.5 billion in 2014 and is expected to grow lucratively over the next several years, according to a report by Grand View Research.

Key factors attributing to its rapid growth include increasing threat of cyber attacks, regulatory and security compliance related issues, and data leaks from within the organization triggered by external or internal factors. Furthermore, increasing instances of patent infringement, theft of intellectual property, business secrets, medical identity fraud, and loss of electronic patient health records (ePHI), social security records are also expected to boost the usage of products in the field of healthcare over the forecast period, the report found.

In 2014, identity and access management held the maximum market share of nearly 14 percent. However, risk and compliance management is expected to be the most lucrative solution type growing at a compound annual growth rate (CAGR) of over 9 percent over the forecast period, the report said.

The report referenced data published by the SANS institute, and also its own internal estimates, which found that during September 2012 and October 2013, more than 380 healthcare organizations witnessed devices and networks related security threats in the U.S. What’s more, it mentioned a Ponemon Institute report which found that the average cost of data breach in a hospital was more than $2 million, with costs increasing with the size of the healthcare organization.

As such, the lack of adequate IT spending by healthcare organizations and lack of awareness about cyber crime are key reasons attributing to the increasing attacks on healthcare organizations, researchers found. The overall impact of these attacks on hospitals and healthcare systems is estimated to be nearly $6 billion annually in terms of revenue, with patient medical and insurance records being the key factors triggering such attacks.

The trend of cyber attacks on medical device manufacturers, pharmaceuticals and insurance companies is on the rise across the globe, but the highest impact has been witnessed by the U.S. based companies. North America held the largest share of the market, at 40 percent. The type of threat, frequency of attack and impact of each attack varies across different organizations based on their internal security controls. Earlier on, these attacks were focused more on stealing credit card details, billing information, bank account numbers using spam mails, phishing, or by using stolen devices with un-encrypted data. Also, the time taken to identify security breaches can be very long, if adequate internal systems, firewalls are not used and it can create huge impact to the company’s credibility and accountability, the report found.

Further, lack of internal identification and systems, use of insecure networks, employee negligence, and loss of devices with un-encrypted files or data theft by employee are also some of the key aspects contributing to the increasing crimes. In 2014, malware held the largest market share and is expected to continue its strong growth over the forecast period, according to the report.

Ideally, organizations implement more than two-layer or three-layer security frameworks to better identify the threats and control the flow of data, information and monitor the various other transactions performed by each user, the researchers advised.

Get the latest information on Health IT and attend other valuable sessions at this two-day Summit providing healthcare leaders with educational content, insightful debate and dialogue on the future of healthcare and technology.

Learn More

Topics

News

Analysis: Healthcare Ransomware Attacks Decline in First Half of 2018

In the first half of 2018, ransomware events in major healthcare data breaches diminished substantially compared to the same time period last year, as cyber attackers move on to more profitable activities, such as cryptojacking, according to a new report form cybersecurity firm Cryptonite.

Dignity Health, UCSF Health Partner to Improve the Digital Patient Experience

Dignity Health and UCSF Health are collaborating to develop a digital engagement platform that officials believe will provide information and access to patients when and where they need it as they navigate primary and preventive care, as well as more acute or specialty care.

Report: Digital Health VC Funding Surges to Record $4.9 Billion in 2018

Global venture capital funding for digital health companies in the first half of 2018 was 22 percent higher year-over-year (YoY) with a record $4.9 billion raised in 383 deals compared to the $4 billion in 359 deals in the same time period last year, according to Mercom Capital Group’s latest report.

ONC Roundup: Senior Leadership Changes Spark Questions

The Office of the National Coordinator for Health IT (ONC) has continued to experience changes within its upper leadership, leading some folks to again ponder what the health IT agency’s role will be moving forward.

Media Report: Walmart Hires Former Humana Executive to Run Health Unit

Reigniting speculation that Walmart and insurer Humana are exploring ways to forge a closer partnership, Walmart Inc. has hired a Humana veteran to run its health care business, according to a report from Bloomberg.

Value-Based Care Shift Has Halted, Study Finds

A new study of 451 physicians and health plan executives suggests that progress toward value-based care has stalled. In fact, it may have even taken a step backward over the past year, the research revealed.