US Healthcare Organizations Lose $1.9M Daily to Ransomware Attacks: Study
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The healthcare sector in the US loses an average of $1.9 million each day following a ransomware attack, according to a study by software company Comparitech. The report has identified 654 individual ransomware attacks on medical organizations since 2018, including 143 last year alone which led to over 26.2 million patient records being exposed. The average ransom amount demanded during a healthcare cyberattack is $1.18 million, but the actual cost of the attack includes expenses for system restoration, specialist teams, lost revenue due to downtime, and providing identity theft protection to those affected by a data breach.
US Healthcare Sector Bleeds $1.9 Million Daily Due to Ransomware Attacks
Ransomware attacks are causing US healthcare organizations to lose an average of $1.9 million daily during system downtime, reports Comparitech. The fallout of such attacks on healthcare providers can be devastating as they are forced to suspend their systems, disrupting care delivery and patient data access until a ransom is paid or IT experts eliminate the ransomware.
Rising Frequency of Ransomware Attacks on Healthcare Organizations
The escalating prevalence of destructive ransomware attacks in the healthcare sector is alarming. Since 2018, 654 distinct ransomware attacks have targeted medical organizations, with 143 of these incidents occurring in the last year. The report further highlights that these attacks exposed over 26.2 million patient records in the previous year.
Anticipated Increase in Healthcare Ransomware Attacks by 2025
Rebecca Moody, Head of Data Research at Comparitech, predicts a surge in ransomware assaults on the healthcare industry by 2025. The recent revealing of LockBit’s updated version and the rise of new ransomware gangs like Interlock, who claimed the attack on Texas Tech University Health Sciences Center, underscore the imminent threat.
According to Comparitech’s report, the typical ransom demanded in a healthcare cyberattack is around $1.18 million, but the true cost extends beyond the ransom. Even after paying the ransomware, organizations endure substantial recovery costs, and the probability of incurring these additional expenses is quite high, suggests Moody.
These recovery costs consist of system restoration, specialist team deployment, lost revenue due to downtime, and identity theft protection provision for people affected by the data breach.
Critical Need for Proactive Measures Against Ransomware Attacks
Moody emphasizes the need for healthcare providers to prepare contingency plans for possible ransomware attacks. This includes constituting an incident response team, formulating a robust communication strategy, and designing detailed guidelines to manage the threat—like disconnecting infected systems from the network and data recovery procedures. Regular data backups are crucial in mitigating cyberattack-induced downtime.
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