IBM says Healthcare Industry Still Tops Costs of Data Breach

Cyber Straight Talk

Defending against cybersecurity breaches is particularly difficult in the healthcare industry. According to IBM’s 2024 Cost of a Data Breach report, healthcare once again topped the list for the highest average breach cost at $9.77 million per incident—a position it has held since 2011. This alarming trend reflects the unique challenges healthcare organizations face in securing their digital environments.

Cyber-attacks on healthcare aren’t just about data—they threaten critical infrastructure and patient outcomes. A ransomware attack can delay surgeries, disable access to medical records, or interrupt life-supporting equipment. This potential for real-world harm makes cyber defense in healthcare not just a compliance issue—but a matter of patient safety.

Healthcare organizations are prime targets due to the sensitivity and value of the data they store—from personal identity and insurance information to detailed medical records. Cybercriminals know that hospitals may be more likely to pay ransom quickly because downtime could result in loss of life, not just revenue. This urgency makes ransomware attacks especially attractive in this sector.

In addition, interoperability requirements and regulatory pressures (like HIPAA) make security architecture more complex and harder to adapt quickly. Staff shortages, budget constraints, and insufficient cybersecurity training across clinical roles compounds the risks.

The sheer volume and diversity of connected devices on hospital networks coupled with the rapid turnover and variety of networked devices create a sprawling and hard-to-secure digital perimeter. Many of these devices lack modern security protocols, making them easy entry points for attackers.

Moreover, healthcare technologies are often outdated or built on legacy systems that are difficult to patch or modernize without disrupting patient care. This technical debt leaves hospitals vulnerable to exploits targeting old software, the large numbers of IoT devices, and unpatched vulnerabilities.

How Can Cyber Knowledge Partners help? Hospital boards should engage Cyber Knowledge Partners (CKP) to build a board-driven cyber resiliency and response strategy that protects patient care, operations, and reputation. CKP translates complex cyber and regulatory risks into actionable insights for governance, helps assess vulnerabilities across systems and medical devices, and guides the development of board-approved response plans. Through tailored training, simulations, and strategic advisory, CKP helps boards stay informed, aligned with healthcare regulations, prioritize what actions can be taken, and prepared to lead confidently through any cyber crisis.

We take a pragmatic approach and speak the language of governance, risk, and real-world impact.