Scarinci Hollenbeck, LLC
The Firm
201-896-4100 info@sh-law.comAuthor: Scarinci Hollenbeck, LLC|February 2, 2017
The Third Circuit Court of Appeals recently held that Horizon Blue Cross Blue Shield of New Jersey may be held liable for a data breach under the Fair Credit Reporting Act (FCRA), despite the lack of evidence that any of the stolen data was used to the plaintiffs’ detriment.
Healthcare Data Breaches
The Court’s decision in serves as an important reminder of the significant liability New Jersey businesses can face in the wake of patient data breach. According to several studies, the healthcare companies are more susceptible to data breaches when compared to other industries. In fact, the Ponemon Institute found that almost 90 percent of all healthcare organizations it studied suffered at least one data breach in the past two years. On average, those cyberattacks cost $2.2 million per incident.
Risk Mitigation Steps
Because of the significant risk of exposure faced by healthcare companies, it is important that they take appropriate steps to address those risks. For example:
Potential Resources
This is a growing area of potential risk and liability. New Jersey businesses that handle personal health information or other patient data should take steps to minimize the risk of data breaches. Those steps should include consulting with attorneys specializing in cybersecurity risk analysis and mitigation to help navigate these steps.
The Firm
201-896-4100 info@sh-law.comThe Third Circuit Court of Appeals recently held that Horizon Blue Cross Blue Shield of New Jersey may be held liable for a data breach under the Fair Credit Reporting Act (FCRA), despite the lack of evidence that any of the stolen data was used to the plaintiffs’ detriment.
Healthcare Data Breaches
The Court’s decision in serves as an important reminder of the significant liability New Jersey businesses can face in the wake of patient data breach. According to several studies, the healthcare companies are more susceptible to data breaches when compared to other industries. In fact, the Ponemon Institute found that almost 90 percent of all healthcare organizations it studied suffered at least one data breach in the past two years. On average, those cyberattacks cost $2.2 million per incident.
Risk Mitigation Steps
Because of the significant risk of exposure faced by healthcare companies, it is important that they take appropriate steps to address those risks. For example:
Potential Resources
This is a growing area of potential risk and liability. New Jersey businesses that handle personal health information or other patient data should take steps to minimize the risk of data breaches. Those steps should include consulting with attorneys specializing in cybersecurity risk analysis and mitigation to help navigate these steps.
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