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The importance of data security in healthcare 

WinZip Blog

The importance of data security in healthcare

The Health Information Technology for Economic and Clinical Health (HITECH) Act transformed how public and private healthcare providers store and access clinical information. As the healthcare industry adopted electronic health records (EHR) systems, the amount of patient health data skyrocketed. Each year, a single patient generates around 80 megabytes of EHR data.

Today, around 30% of our global data volume comes from the healthcare industry. This amount is expected to grow even further, with the compound annual growth rate (CAGR) for healthcare data estimated to reach 36% by 2025.

Data security in healthcare is essential to protect this highly sensitive information from unauthorized access, loss, destruction, and more. Insufficient data security can leave healthcare organizations vulnerable to a host of risks, such as costly fines, reputational damage, and business loss.

In this article, we will explore why data security is so important in the healthcare industry. This will include the top benefits of data security, as well as real-world examples of how data security incidents impact healthcare organizations.

Why data security is imperative in healthcare

Cybercriminals target protected health information (PHI) due to its high value on the dark web. This is because a single medical record contains a host of sensitive data, including financial details, personal information, Social Security numbers, and more. When stolen data is sold on the dark web, healthcare records sell for an average of $250, compared to approximately $5 for payment card details.

The healthcare industry is subject to several federal, state, and industry-specific data protection laws. The most well-known example is the Healthcare Insurance Portability and Accountability Act (HIPAA). HIPAA rules apply to covered entities (e.g., healthcare providers, health plans, clearinghouses) and their business associates.

While HIPAA’s data privacy and security standards are often more stringent than other industries, it’s still important for healthcare organizations to closely follow other data privacy laws. For example, 13 states have stricter regulations than HIPAA when it comes to medical record access.

Failure to comply with these regulations can result in monetary penalties exceeding hundreds of thousands of dollars (based on factors such as the severity of the breach, mitigation efforts, and the number of individuals affected).

Benefits of data security

Advancing digital technologies mean that today, patient records are held on servers, computers, and storage devices rather than stored on paper in file cabinets. All this information is accessed, updated, recorded, and shared between multiple facilities and healthcare providers.

A robust data security strategy does more than secure healthcare data against cyberthreats. It also plays a critical role in controlling malicious and negligent insider threats, which are a top cause of data loss. According to the Ponemon Institute’s 2022 Insider Threats Report, 56% of data breaches involving an insider are the result of careless or negligent behavior.

For example, 63% of employees worldwide are using personal file sharing systems for work-related data. While unintentional, this creates an immense opportunity for information loss and compromise because consumer-grade solutions do not offer sufficient data security controls.

When it comes to protecting healthcare information, data security offers the following benefits:

  • Safe harbor for HIPAA’s Breach Notification Rule. According to HIPAA, data encryption is an effective security measure for protecting PHI. Following a breach, healthcare organizations do not have to notify affected individuals so long as the information was encrypted properly. This is because encrypted data cannot be used by unauthorized individuals, creating a safe harbor for breach notification requirements.

  • Better care outcomes. According to the Cybersecurity and Infrastructure Security Agency (CISA), cyberattacks have a direct impact on patient mortality. An attack on a healthcare organization’s network can render patient records inaccessible, disrupt communications, and delay treatment and testing. Prioritizing data security is an effective way of ensuring continued delivery of quality care.

  • Increased cybersecurity awareness. Data security policies ensure that all staff are educated on the value and importance of securing healthcare data so that they can detect and respond to fraudulent behavior. This is especially important for smaller health systems and specialty clinics that often lack the security levels, staff, and budget for robust cybersecurity defenses.

Data security incident examples

The healthcare industry remains a top target for cyberattacks, threatening both organizations and patients. In 2022 alone, more than 40 million patient records have been exposed or stolen due to security vulnerabilities in EHR systems.

Much of the threat landscape centers around outdated legacy systems, limited IT budgets, and a growing shortage of healthcare cybersecurity personnel. In addition, the growing use of connected medical devices also expands a healthcare organization’s attack surface. This is because 68% of health entities don’t consistently update devices when new security patches are available.

Without proper preparation, data security incidents can result in operational downtime, loss of public trust, financial consequences, and more. The following recent examples demonstrate the importance of comprehensive data security:

  • Legacy Health. Portland, Oregon-based Legacy Health experienced a data breach caused by an insider threat. A lab employee copied patient records to their personal storage devices using email and external drives. The compromised files contained patient names, medical record numbers, health insurance information, and other types of personal data.

  • Broward Health. In October 2021, an unauthorized individual used a third-party medical provider’s office to gain access to Broward Health’s network. More than 1.3 million patients and employees were affected, and the breach investigation revealed that prior to the incident, the health system lacked basic data security measures such as multifactor authentication (MFA).

  • Partnership HealthPlan of California (PHC). A cyberattack took down PHC’s computer systems in March 2022. The Hive ransomware group took credit for stealing 850,000 PII records from PHC, as well as 400 GB of files stored on PHC’s server. The health plan faces a lawsuit in which plaintiffs allege that PHC failed to provide basic data security measures, including user authentication practices, security privileges, and patching/updating protocols.

How WinZip Enterprise ensures data security in healthcare

Data security is focused on three primary components: confidentiality, integrity, and availability of data. Also known as the CIA triad, this data security model helps organizations ensure that information is kept safe from unauthorized access, cannot be altered by unauthorized individuals, and is readily accessible to authorized users.

When faced with ever-growing cybersecurity threats, WinZip Enterprise helps healthcare organizations secure the components of the data security CIA triad. This fully customizable solution features a complete set of data security tools, including:

  • Encryption. File-level encryption safeguards highly sensitive PHI data both at rest and in transit. Whether data is stored in a device or actively moving from a sender to a receiver, encryption renders the information unable to anyone without the proper encryption key

  • Access control. An access control system limits user access rights to only what is needed for an individual’s job role. Administrative controls to manage access and permissions include MFA, principle of least privilege (POLP) access, and using audit logs to quickly detect anomalous behaviors that could compromise data security.

  • Data backup and compression. If a cyberattack compromises, corrupts, or erases data, backing up files creates a safety net for quick information recovery. WinZip Enterprise also compresses backup files, which reduces data storage costs while maximizing the capacity of a backup server.

Discover how WinZip Enterprise ensures data security for healthcare organizations.

What is the healthcare industry cybersecurity task force? 

WinZip Blog

What is the healthcare industry cybersecurity task force?

The healthcare industry has long been a preferred target of cybercriminals. This is due not only to the high value of protected health information (PHI) records, but also because the digitization of the industry’s technology infrastructure has created new ways for attackers to infiltrate healthcare systems.

Following the passage of the HITECH Act in 2009, the industry experienced a significant expansion in health information technology. Electronic Health Record (EHR) systems have made it easier to share information with patients and other providers, but they also make it easier for cybercriminals to find and leverage system vulnerabilities.

In 2015, Congress passed the Cybersecurity Information Sharing Act (CISA) to improve cybersecurity practices and make it easier for companies to share information related to cybersecurity threats with the government. Following the passage of CISA, the Department of Health and Human Services (HHS) established the Healthcare Industry Cybersecurity Task Force.

The goal of the Task Force is to improve healthcare cybersecurity practices. Its members represent a range of organizations within the healthcare industry, such as hospitals, insurers, IT vendors, and more.

In this article, we will cover what the Healthcare Industry Cybersecurity Task Force does to improve cybersecurity practices, analyze Task Force activity updates, and detail how solutions like WinZip® Enterprise can help healthcare organizations mitigate the ever-changing cybersecurity threats facing the industry.

History of the healthcare industry cybersecurity task force

The Healthcare Industry Cybersecurity Task Force first convened in March 2016. At the time of its formation, the healthcare industry had already suffered significant cybersecurity events, including:

  • Boston Children’s Hospital, 2014. The hacktivist group Anonymous launched a massive, sustained, distributed denial of service (DDoS) against the 395-bed facility in April 2014. The hospital spent more than a week fending off the cyberattack.

  • Anthem, Inc., 2015. A Chinese hacking group targeted and breached Anthem’s computer systems in 2015, compromising the data of nearly $80 million individuals. The stolen data included names, dates of birth, Social Security numbers, health identification numbers, and more. This incident is the largest healthcare data breach to this day.

  • Hollywood Presbyterian Medical Center, 2016. Hackers used malware to infect and seize control of the hospital’s computer systems in early 2015. Following the ransomware attack, Hollywood Presbyterian Medical Center paid a $17,000 ransom to restore its systems and operations.

Healthcare Industry Cybersecurity Task Force members spent a year analyzing cybersecurity concerns impacting healthcare systems. Task Force members held public meetings and met with industry leaders and stakeholders to identify trends, threats, concerns, and best practices related to cybersecurity.

The information and ideas gathered by the Task Force enabled its members to address key CISA requirements:

  • Analyze how other critical industries address cybersecurity threats through various strategies and safeguards.
  • Identify barriers and challenges that private entities in the healthcare sector face regarding preventing cyberattacks.
  • Review challenges specific to securing networked medical devices as well as other software or systems connected to EHRs.
  • Provide information and strategies to help healthcare entities strengthen their defense and response to cybersecurity threats.
  • Establish a plan that enables healthcare organizations and the federal government to share actionable cyberthreat indicators and defensive processes.

Congress received the first Task Force report in June 2017, which detailed complex challenges the healthcare industry faces when it comes to securing and safeguarding against cybersecurity risks. The Report on Improving Cybersecurity in the Healthcare Industry also identified key imperatives for improving cybersecurity practices:

  • Define leadership and governance for healthcare industry cybersecurity.
  • Increase the security of medical devices and health IT.
  • Develop the healthcare workforce capacity needed to prioritize cybersecurity awareness and technical abilities.
  • Improve cybersecurity awareness and education.
  • Protect research and development (R&D) efforts and intellectual property (IP) from cybersecurity threats.
  • Enhance information sharing of threats, risks, and mitigations.

Task force year one update

HHS studied the Task Force’s report and worked across its agencies and offices to implement recommended changes. In the year following the Healthcare Industry Cybersecurity Task Force report, HHS took the following actions to address the report’s key imperatives:

  • Defining leadership and governance. The Deputy Secretary for HHS was designated as the lead official for all HSS cybersecurity measures. An internal working group was also established to coordinate cybersecurity activities, such as implementing the Task Force’s recommendations.

  • Increasing IT and medical device security. To address the challenges of securing medical devices and EHRs, the Food and Drug Administration (FDA), an HHS agency, developed the Medical Device Safety Action Plan. The plan prioritizes innovation to improve patient safety and develop more effective products and services to resolve unmet medical needs.

  • Developing the healthcare workforce capacity. HHS coordinated with National Initiative for Cybersecurity Education (NICE) to help lead its Federal IT Workforce Committee. The Department also leveraged the NICE Framework to improve its ability to attract, develop, and retain IT professionals in the health sector.

  • Improving cybersecurity awareness and education. HHS has prioritized cybersecurity outreach by offering continuing education and outreach activities, as well as online resources for non-technical audiences.

  • Protecting R&D and IP. Clinical trials, drug and device development, and even general healthcare operations can be opportunities for cybercriminals to commit healthcare intellectual property theft. To prevent attacks and unauthorized data exposure, HHS worked with the National Academies to add research institutions to HHS’s private sector critical infrastructure partnership.

  • Enhancing information sharing. To improve information sharing between the government and the healthcare industry, HHS developed executive and technical summaries on emerging cyberthreats and provided grants to promote information sharing across a wide range of healthcare entities.

Addressing the healthcare industry cybersecurity task force recommendations

The Healthcare Industry Cybersecurity Task Force report stated that healthcare cybersecurity was in critical condition back in 2017. Today, this assessment remains true. The healthcare industry has been the primary target of ransomware and other cyberattacks, making it critical for organizations to prioritize and improve their cybersecurity practices.

While the Healthcare Industry Cybersecurity Task Force disbanded after delivering their report, efforts to address the Task Force’s recommendations are ongoing. In the face of ever evolving cyberthreats, healthcare organizations turn to solutions such as WinZip Enterprise.

This powerful, customizable tool protects critical data through industry-leading encryption, management, sharing, backup, and compression capabilities. WinZip Enterprise also offers native integration with leading enterprise-grade cloud storage providers, providing unsurpassed protection for data at rest and in transit.

Discover how WinZip Enterprise can help your organization maintain cybersecurity risks.

Does your healthcare staff need a healthcare cybersecurity certification? 

WinZip Blog

Does your healthcare staff need a healthcare cybersecurity certification?

In the healthcare industry, information security is crucial for patients and providers alike. Whether through unintentional accidents or targeted attacks, data exfiltration is one of the fastest-growing cybersecurity threats.

Cyberattacks are on the rise, increasing in both frequency and efficiency. Hacker groups from around the globe have targeted hospitals and health systems to exfiltrate protected health information (PHI), personally identifiable information (PII), and other restricted data.

As threats increasingly target the healthcare sector, these organizations are also facing a critical shortage of cybersecurity professionals. On average, cybersecurity jobs take 70% longer to fill than other IT roles, often due to the potential consequences and ramifications of a cyberattack.

Security-related certifications ensure staff have the knowledge and skills necessary to manage cybersecurity threats. There are numerous options when it comes to certification programs in cybersecurity, but there’s no one-size-fits-all solution.

This is because the credentials for healthcare cybersecurity certification are based on different skill sets and focus areas. For example, some cybersecurity certifications are meant for IT professionals with years of experience. Others can be obtained with little to no experience, requiring minimal continuing education or on-the-job experience to qualify.

Let’s look at some of the top cybersecurity certifications available, their benefits, and how to prepare for the exams.

Entry-level certification

Organizations that focus on recruiting and developing entry-level cybersecurity staff can accelerate the hands-on training needed to overcome the cybersecurity labor shortage. Cybersecurity certification can help remove barriers to enter the field and allows candidates to demonstrate their understanding of important concepts and best practices.

The two most prominent healthcare cybersecurity certifications are the Certified Associate in Healthcare Information and Management Systems (CAHIMS) and the (ISC)² Certified in Cybersecurity.

CAHIMS

CAHIMS is offered through the Healthcare Information and Management Systems Society (HIMSS), a leading source of authority for healthcare IT. Ideal for entry- and junior-level staff, this certification establishes a solid foundation for a career in health information and management systems.

Anyone with a high school diploma (or equivalent) as well as 45 hours of continuing education is eligible for CAHIMS certification. A candidate holding an associate’s, bachelor’s, or other advanced degree only needs 25 hours of continuing education. Relevant work experience can be used in lieu of continuing education credits, but the hours required are greater—150 hours for those with a high school diploma and 75 hours for those with an associate’s or higher.

The CAHIMS exam features 115 multiple-choice questions, 100 of which are graded. Exam topics are based on common knowledge and skills in healthcare IT, including:

  • Organizational environment
  • Technology environment
  • Information and systems management
  • Privacy and security
  • Clinical informatics

Certified in Cybersecurity

The nonprofit International Information System Security Certification Consortium, Inc. (ISC)2 offers globally recognized certifications for information security. (ISC)2’s Certified in Cybersecurity certification is a pilot program that began in early 2022 and is meant to provide new pathways for people interested in cybersecurity roles.

Obtaining this certification will help candidates demonstrate the foundational knowledge, skills, and abilities needed to obtain entry-level work in cybersecurity. The exam is multiple choice, 100 questions, and covers topics including, but not limited to:

  • Security principles
  • Access control concepts
  • Network security
  • Incident response, business continuity, and disaster recovery concepts
  • Security operations

Professional certification

Experienced professionals can also demonstrate commitment to and expertise in the field of cybersecurity through various certification programs, including:

  • Certified Professional in Digital Health Transformation Strategy (CPDHTS)
  • Certified Professional in Healthcare Information and Management Systems (CPHIMS)
  • Certified Information Systems Security Professional (CISSP)
  • Healthcare Information Security and Privacy Practitioner (HCISPP)

CPDHTS

The CPDHTS certification program demonstrates a candidate’s competence in digital health transformation strategy, which is the adoption of technologies that improve workflows, efficiency, and patient care outcomes. Electronic health records (EHRs), telehealth solutions, and cloud security technologies are all examples of digital transformation.

To earn professional certification through the CPDHTS exam, candidates must meet eligibility requirements related to education and work experience. While this is not meant for entry-level staff, CPDHTS certification goes a long way toward resolving a common pain point in digital transformation—70% of such projects fail.

The CPDHTS exam has 150 multiple-choice questions relating to IT ecosystems, health, transformation, and strategy. Topics addressed include, but are not limited to:

  • Privacy and security
  • Digital infrastructure and interoperability
  • Virtual healthcare delivery models
  • Compliance and adherence
  • Data science and analytics

CPHIMS

The CPHIMS credential demonstrates that an individual meets an international standard of knowledge and competence relating to information and management systems. Because this certification establishes a professional’s expertise in the field, it requires more education and experience than CAHIMS:

  • Ten years of experience working in information and systems management, eight of which must be specific to a healthcare setting;
  • A four-year degree in addition to five years of hands-on work experience, three of which must be in a healthcare setting; or
  • A graduate degree or higher in addition to three years of on-the-job experience, two of which must be in healthcare.

The CPHIMS exam is 100 questions, all of which impact the final score. It addresses the same core topics as CAHIMS but in greater detail commensurate with the test-taker’s experience.

CISSP

The CISSP is recognized worldwide as a highly valuable security certification. The CISSP certification exam aligns with the (ISC)2 Common Body of Knowledge (CBK). The CBK contains all the relevant subjects a cybersecurity professional should be familiar with, including skills, techniques, and best practices.

The technical knowledge covered by the exam focuses predominantly on security controls and operations. Earning CISSP certification demonstrates an individual’s ability to understand a wide range of information security disciplines.

The exam, offered through (ISC)², evaluates a test-taker’s technical and managerial competence across eight areas of expertise. Eligible candidates must have at least five years of experience in two or more of the domains:

  • Security and risk management
  • Asset security
  • Security engineering
  • Communications and network security
  • Identity and access management
  • Security assessment and training
  • Security operations
  • Software development security

HCISPP

(ISC)2 also offers cybersecurity certification specific to healthcare. The HCISPP combines cybersecurity skills with the best practices and techniques to safeguard patient health information. Certification places heavy emphasis on regulatory issues, risk management, data governance, and other privacy concerns.

With the growing volume of ransomware attacks, the knowledge and abilities needed to assess, implement, and manage cybersecurity controls in healthcare organizations are more important than ever.

The HCISPP exam focuses on seven domains of expertise. Qualified candidates must have at least two years of paid work experience in at least one of these domains:

  • Healthcare industry
  • Information governance in healthcare
  • Information technologies in healthcare
  • Regulatory and standards environment
  • Privacy and security
  • Risk management and assessment
  • Third-party risk management

Exam preparation

HIMSS certification exams are based on relevant work experience, which requires candidates to recall, apply, and analyze information. To ensure that candidates meet the minimum requirements, knowledge, and skills, HIMSS publishes candidate manuals for each examination.

Candidate manuals include information on how to prepare for exams, an overview of topics, and a competency gap assessment. This tool helps test-takers identify the topics that require extra study and review prior to the exam. HIMSS also has practice exams and review guides for each program that can be used to familiarize test-takers with the exam’s format and types of questions.

(ISC)2 also offers a variety of materials to help candidates prepare for exams, including study guides, practice tests, and flash cards. Test-takers can also prepare using (ISC)2 online training, which includes options for self-paced learning as well as virtual learning with an authorized instructor.

Today, cybercriminals can breach an estimated 93% of company networks. Healthcare IT professionals are in high demand, and both experienced and junior staff can advance their knowledge and skills through cybersecurity certification.

How WinZip Enterprise can enhance cybersecurity certifications

To control and mitigate cyberthreats, healthcare organizations look to solutions such as WinZip® Enterprise. This highly customizable solution empowers IT staff with centralized control over the data environment, including the ability to set and enforce encryption standards, access controls, and other important security protocols.

Discover how WinZip Enterprise keeps your organization safe from the most important cybersecurity threats.

Top 5 healthcare data storage best practices 

WinZip Blog

How healthcare cybersecurity services can help keep your organization compliant

Since 2020, healthcare organizations have had to deal not only with a global pandemic but also a sharp increase in cybersecurity threats. From 2018 to 2021, attacks on the healthcare industry increased by 84%, impacting 14 million individuals in 2018 compared to 44.9 million in 2021.

Data storage and management in the healthcare industry keeps sensitive protected health information (PHI) safe from cyber threats. Storage and management practices are subject to a variety of legal and regulatory requirements, including the Health Insurance Portability and Accountability Act (HIPAA).

As cyberattacks increase in frequency and complexity, healthcare organizations must manage and store health information securely and in compliance with industry standards. In this article, we will explore the top five best practices for healthcare data storage to overcome the challenges in today’s increasingly digital environment.

Challenges with healthcare data storage and management

From 2009 to 2021, data breaches impacted almost 315 million healthcare records. Healthcare data is highly sensitive and more valuable to hackers and other cybercriminals than other types of personal information. For example, credit card numbers sell for around $5 each on the dark web, but medical records can sell for $250–1,000 each.

While a compromised credit card can be canceled, the perceived value of medical records stems from their unalterable data points. This is because a single medical record can contain an array of personal information, such as the individual’s social security number, health insurance coverage, payment data, and more. The information gained from compromised healthcare records can be sold or used for personal gain.

With the current threat landscape and the ramifications of improper data storage, healthcare organizations should consider implementing the following five best practices for data storage and management.

1. Implement file-level encryption

Encryption scrambles the contents of the data file so that only authorized individuals can receive and understand it. To encrypt the information, a user needs the correct encryption key. By encrypting sensitive files, healthcare organizations limit the impact of data breaches, prevent unauthorized access, and comply with applicable regulations.

For example, HIPAA, PCI-DSS, and GLBA rules all require encryption at rest and in transit to ensure the privacy of sensitive data. Data at rest is inactive, which means it is stored on a server, database, flash drive, mobile device, backup storage, or other designated location. Data in transit is traveling between systems or devices. Encrypting both ensures comprehensive data security.

2. Manage the business associate relationship

Healthcare organizations often rely on third parties to manage various aspects of day-to-day operations. Like the organization itself, any third party that handles PHI is subject to HIPAA rules. When it comes to the security of PHI, the responsibilities held by the covered entity and its business associates are detailed in a business associate agreement (BAA).

It’s important to assess potential and current third-party vendors to keep data secure. This includes conducting risk assessments, which are required by HIPAA to help organizations identify data vulnerabilities in their current operations. Should a data breach occur, both parties can be held financially liable.

However, penalties for HIPAA violations are tiered based on factors that contributed to the breach. In essence, unknown/unavoidable violations are treated less harshly than those that constitute willful neglect of HIPAA rules. This makes it vital to have comprehensive BAAs with reputable third-party providers.

3. Protect data backups

Backing up organizational data is an integral part of information management. Organizations that back up their data will be protected if the original dataset is lost or compromised. When developing a comprehensive backup strategy, healthcare entities should ensure that file backups are stored in multiple formats and locations. This is known as the 3-2-1 rule, which maintains three copies of your data on two types of storage media, and one data copy stored in an offsite solution. A 3-2-1 backup strategy reduces the negative impact of a single point of failure.

For comprehensive data protection, healthcare organizations should leverage a combination of full, differential, and incremental backup methods. A full backup duplicates all existing files, while a differential backup only copies files that were added or changed after the last full backup. An incremental backup is the fastest option of the three because it only copies data added or changed since the last backup—full or differential.

4. Adhere to data retention requirements

State and federal guidelines inform how long data must be stored and maintained. At the federal level, retention requirements stem from the Centers for Medicare & Medicaid Services (CMS), the Occupational Safety and Health Administration (OSHA), and HIPAA:

  • CMS requires healthcare providers to maintain medical records for at least five years.

  • OSHA’s hazardous substance rules require that employee exposure records be kept for 30 years.

  • HIPAA-associated records must be kept for six years.

A key point of confusion is the retention requirements for medical records versus other HIPAA-associated records. Examples of HIPAA-related documentation include risk assessments, notices of privacy practices, BAAs, and PHI disclosure authorizations, among others.

Data retention requirements vary at the state level and can also be influenced by the type of covered entity. For example, physicians in Texas must retain medical records for seven years following their practice’s last contact with the patient. Hospitals in the same state, however, must keep medical records for 10 years.

5. Secure access and permission

Access control measures and other security permissions ensure that only authorized individuals can store, retrieve, and use healthcare data. Limiting access to computer networks, system files, and organizational data is often based on the principle of least privilege (POLP).

Each user has individual credentials based on permission-based user roles. Defining who can access certain folders and documents ensures that sensitive information doesn’t fall into the wrong hands, even within the company.

Permission-based user roles also make it easy to monitor and audit access controls. Because permissions and access privileges are assigned to a specific individual user, healthcare organizations can track user activity using audit logs. This makes it easy for IT teams to detect and remedy unusual behavior, noncompliance, and other questionable user activity that could lead to data loss.

WinZip Enterprise supports data storage best practices

Secure data storage relies on solutions such as WinZip® Enterprise. A complete set of enterprise-grade tools, WinZip Enterprise empowers IT admins with custom configurations. This enables you to set and enforce security standards for all users based on internal security controls.

WinZip Enterprise protects data at rest and in transit using Advanced Encryption Standard (AES), the industry-standard encryption protocol for data security. According to the National Institute of Standards and Technology (NIST), AES encryption is the best option for meeting HIPAA encryption requirements.

Learn how WinZip Enterprise helps healthcare organizations implement and maintain data storage best practices.

What is data loss insurance and why does your company need it? 

WinZip Blog

What is data loss insurance and why does your company need it?

One of a company’s most valuable assets is its data. Some of this data may be highly sensitive, which requires additional levels of protection to prevent unauthorized access and loss. From intellectual property to customer payment data, handling sensitive content puts your organization at risk of data loss.

On a global scale, 64% of companies have experienced at least one instance of cyberattack. These incidents are highly disruptive to business operations, impacting a company’s reputation and bottom line.

To protect themselves and their customers, many businesses look to various forms of cyber insurance. Policies and coverage vary between insurers, but they are designed to help a business recover from the financial burden and other damages caused by cybersecurity incidents.

In this article, we will explain various types of data loss insurance and how they work, why you need this type of cybersecurity coverage, and how data loss insurance fits into a successful cybersecurity plan.

What does data loss insurance entail?

While a company may already have commercial property and general liability insurance, these policies typically do not apply to electronic data or cyber liability. Cyber insurance addresses the security risks inherent in digital technologies, including breaches, hacking, ransomware, viruses, and system failures.

Data loss insurance covers business losses due to cyberattacks in which data is lost or stolen. It is intended to reduce the impact of data loss caused by data breaches and other cyberattacks, as well as cover the costs of subsequent legal action taken against the insured company.

These policies can provide coverage in multiple scenarios, such as:

  • Your company is hacked, and customers’ personal data is stolen. In response to this violation of privacy, your customers file suit against your business. Data loss insurance can help pay for any legal expenses necessary to defend the organization in court. This includes attorney’s fees, court costs, judgments, damages, and settlements.
  • Malware affects the company network, giving malicious actors access to financial records including credit card information. The fines and penalties imposed on your company by the Payment Card Industry Data Security Standard (PCI DSS) can be substantial, varying from $5,000–100,000 per month. Data loss insurance helps companies cover these assessments, fines, and penalties.
  • Cybercriminals infiltrate your datacenter and encrypt the data held on its systems. Data loss insurance can help not only pay the ransom to retrieve the data, but also provide compensation for income loss caused by the cyberattack.

Following a data breach, companies may be required to notify affected individuals, hire consultants to conduct breach analysis, and invest in advertising and PR to mitigate reputational damage. A data loss insurance policy helps pay for the costs associated with responding to and recovering from a data breach. For example, some states require businesses to provide up to 12 months of identity theft protection and credit monitoring to people affected by the data breach.

Why businesses need data loss insurance

Data loss insurance covers two important considerations: first-party damages and third-party liability. The first party is the insured company, and the third party is any individual or entity whose information the company has in its systems in the form of data.

First-party damage coverage

First-party damages directly impact the business. For example, if a malware infection causes three days of downtime, the financial losses incurred are first-party damage to your company. If the cyberattack also led to a breach of sensitive data, the cost to notify the affected individuals would also be a first-party damage. In both instances, data loss insurance would reimburse the organization for the damages.

Third-party damage coverage

If a cybersecurity incident causes damage to individuals outside the organization, this creates third-party liability. Should these third parties claim that your company failed to properly protect their data, they might file suit against you. Data loss insurance covers the cost of defending against such lawsuits.

Without data loss coverage, businesses that experience an adverse cybersecurity incident could be left financially responsible for the costs related to cyber damages. This is precisely what happened to Sony’s PlayStation network when it was breached by hackers. The breach exposed the PII of 77 million users and led to a 23-day service outage.

The gaming organization incurred more than $171 million in breach-related costs. However, they did not have any form of cyber insurance, so a court ruled that its insurance policy only covered damage to physical property. This means that costs attributed to responding to and recovering from the hacking event fell solely on the affected company.

Benefits of data loss insurance

Your data security policy is only as strong as its weakest component. It may not be possible to completely eliminate risk, but companies are increasingly emphasizing the importance of scaled detection and measured response.

Data loss insurance is a component of becoming resilient in terms of cybersecurity. Not being prepared for the possibility of data loss creates vulnerability. For example, in 93% of cases, malicious actors can infiltrate a company’s network and access valuable data and resources. Once inside, they can launch a host of intrusive attacks:

  • Ransomware. Ransomware exploits vulnerabilities in servers or other devices connected to the corporate network. The most prominent type of malware is ransomware and is designed to encrypt important files, rendering them unusable. To restore the locked files, the affected business would need to pay the attacker’s ransom fee.
  • Distributed Denial-of-Service (DDoS) attack. A DDoS attack uses numerous compromised computer systems to overwhelm its target, such as a website, server, or other network resource. By flooding the target with connection requests, messages, or malformed packets, a DDoS attack can crash the system and deny service to legitimate users.
  • Structured Query Language (SQL) injection attack. SQL is a programming language used to manage relational databases. A SQL injection (SQLi) manipulates the code so that the attacker can access the database and its resources, including sensitive data.

Sometimes, the threat of data loss arises within the organization itself. For example, over a third of cybersecurity incidents involve phishing, which tricks victims into installing malware or sharing private information.

Around 78% of IT leaders believe that employees have caused accidental data breaches. Whether they are sharing unencrypted data files or working on unsecured networks, employee errors have caused major service outages in almost 40% of businesses.

Data loss coverage ensures that companies can recover effectively from cyberattacks, unintentional data leaks, and everything in between.

Components of a successful cybersecurity plan

Cybersecurity is more than protecting data and systems against malicious actors—a complete cybersecurity plan includes defending against downtime, operational disruption, and revenue loss. Legal fees resulting from cyberattacks can add up quickly, and data loss insurance policies help organizations cover those fees.

While data loss insurance will cover business losses from cyber threats, the best scenario is to avoid data loss altogether. To protect critical data, many organizations leverage WinZip® Enterprise for streamlined data management. This comprehensive solution can be used to manage, share, compress, and encrypt data files to keep sensitive information safe.

WinZip Enterprise enhances your organization’s comprehensive cybersecurity position with centralized control tools that enable IT admins to set up and enforce security standards. It is also compatible with a wide range of enterprise-grade cloud file sharing and file storage platforms, ensuring data is protected no matter where it is located.

Find out how WinZip Enterprise fits into a successful cybersecurity plan, including data loss insurance.
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