When a company falls victim to cyber attacks, whether it be through their website or email content, they lose more than customer data— they lose customer trust.
“Critical to controlling costs is keeping customers from leaving. The research reveals that reputation and the loss of customer loyalty does the most damage to the bottom line,” a Ponemon Institute study states. “In the aftermath of a breach, companies find they must spend heavily to regain their brand image and acquire new financial customers.”
Here are the top reasons organizations are opting for email encryption as part of their security strategy:
Increase in email security breaches
Security breaches across the board are increasing throughout the world each year — and email compromises certainly aren’t excluded from the statistics. The cost of data breaches rose 15 percent from last year. The average cost to an impacted company? $3.5 million.
A Ponemon report released in February indicated a growing trend of email encryption adoption. Of the more than 4,800 IT managers surveyed, 35 percent indicated their companies were utilizing email encryption — that’s up from 29 percent in 2013.
Increase in security audits
At the American Bar Institute conference in June, HHS Chief Regional Civil Rights Counsel Jerome B. Meites said that HIPAA audits will likely increase over the next year.
“Knowing what’s in the pipeline, I suspect that the number will be low compared to what’s coming up,” he stated at the conference.
What does that mean for email encryption, healthcare professionals and their associates? A lot. Securing email communication to ensure patient privacy is not an option for those in the healthcare industry and those who work with them, including insurance companies.
According to Zix Encryption Network, 47 states had enacted some sort of data security/breach notification laws by 2014.
According to industry trends, those laws are poised to grow stricter. Florida has already begun to tackle the issue with the state’s Information Protection Act of 2014, which specifically included email and password protection in its language.