Health Information Management

Companies shift security focus to data loss

HIPAA Weekly Advisor, May 1, 2006

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New corporate security spending in 2007 will shift to data protection and away from network security, with 40% projected to prevent data loss, according to a recent Gartner research firm report.

Increased attention on data loss incidents after several high profile cases-including the loss of 365,000 patient records by Oregon-based Providence Health Systems-is spurring the transition, Red Herring reports.

"There's more information out there than ever and there's actual financial value attached to that data, which has attracted the bad guys," Rich Mogull, vice president of research for Stamford, CT-based Gartner, told Red Herring.

In addition to the increased visibility of incidents, companies are reacting to the high costs of dealing with the aftermath of data loss. These costs can run up to $90 per record lost, not including expenses such as legal services and communications efforts.

Click here to read the Red Herring article.



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