Cyber risk management and insurance services provider Resilience reports that the healthcare industry is currently facing a costly cyber threat landscape and some organizations may be misallocating their security spending.
In its report, U.S. Healthcare and Cyber Risk: Threats, Trends, and Strategies, The company analyzes claims data from healthcare customers to determine which safety practices are most effective in reducing actual financial losses.
Findings indicate that 88% of significant financial losses across Resilience’s healthcare portfolio were caused by social engineering, highlighting the importance of the human factor in cybersecurity risks.
By 2025, the average cost per claim will exceed $2 million, with individual extortion demands reaching as high as $4 million. The report also highlights that a limited number of practical security measures are consistently associated with reduced financial risk, while higher costs do not necessarily correlate with higher effectiveness.
Vishaal “V8” Hariprasad, CEO of Resilience, commented: “Healthcare is one of the most targeted industries in the country and its financial stakes have never been higher.”
“The significance of this study is that it goes beyond classifying threats and tells us what is really at work. When we translate cyber risk into financial terms and look at actual claim outcomes, the picture becomes even clearer for leaders who must make tough decisions about where to invest.”
“Building a truly resilient healthcare organization is not necessarily the one with the largest security budget,” added Jud Dressler, director of Resilience’s Risk Operations Center.
“They align investments with risks that carry the highest financial consequences. Controls like dual authorization for wire transfers or ongoing anti-fraud training are not expensive, but they provide tremendous protection. This is the insight we want every healthcare security and risk leader to take away from this study.”