Pay attention to HITECH Act Definition of Breach: Lost Customers Big Cost Factor

The April 2009 issue of Baseline  magazine has an article by Corinne Bernstein entitled: “The Cost of Data Breaches,” which is available online at www.baselinemag.com. We recommended that covered entities and business associates review this article, based on a Ponemon Institute study of incidents and costs incurred at 43 organizations in 17 industry sectors. Here are several highlights: » “Lost business accounted for nearly 70 percent of a data breach in 2008. » “[S]ectors suffering the highest customer losses were health care…and financial services. » “The biggest cause of breaches…is insider negligence…88% of all cases in 2008. » “The number of breaches involving third-party organizations continues to climb.” The article…

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