www.thales-esecurity.com

2018 THALES DATA THREAT REPORT

Trends in Encryptionand Data Security

U.S. HEALTHCARE EDITION

2018 THALES DATA THREAT REPORTNOW IN ITS SIXTH YEAR

1,200+ SENIOR IT SECURITY EXECUTIVES SURVEYED GLOBALLY | 500 U.S. TOTAL | 100 U.S. HEALTHCARE | 100 GLOBAL HEALTHCARE

Copyright 2018 Thales

U.S.U.K.

GERMANY

JAPAN

INDIA

SWEDEN

NETHERLANDS

KOREA

HEALTHCARE DATA SECURITY – CODE RED

77%More than 3 out of 4large U.S. healthcareorganizations have

now been breached.The highest of any

vertical we measured

BREACHED IN THE LAST YEAR

breached both in thelast year and previously

BREACHED EVER

BREACHED …. AGAIN!

Rates of breaches in the last year at federalagencies are up 2.5x from 2016 in this year’s results2.5

x

HEALTHCARE FEELING VULNERABLE TO DATA THREATS

“More than three-fourths (77%) of U.S. healthcare respondents reported at leastone breach at some time in the past - the highest among all U.S. verticals.”

Garrett Bekker – Principal Analyst for Information Security, 451 ResearchAuthor of the 2018 Thales Data Threat Report

HEALTHCARE ORGANIZATIONS ARE RESPONDING

INCREASING SPENDING – RATES OF MUCH HIGHER SPENDING

46%22%

14%

20182017

2016

IMPLEMENTING DATA SECURITY TOOLSImplementing now, or planning to implement these top tools for protecting sensitive data in 2018.

65%Data masking

60%Identity andaccessmanagement

59%Database andfile encryption

57%Encryption inthe cloud

Healthcare IT Security spending increases. Rates of “Much Higher” spending increases by year.

BUT HOW EFFECTIVE WILL THAT INCREASED SPENDING BE?

Rated Effective

Spending Increase

Highly effectivebut lowestspendingincrease

Least effectivebut highestspendingincrease

“U.S. HEALTHCARE PLANS TO SPEND THE MOST ON SECURITY FOR ENDPOINT ANDMOBILE DEVICES, DESPITE RANKING THESE AS LEAST EFFECTIVE.”Garrett Bekker – Principal Analyst for Information Security, 451 Research

DIGITAL HEALTHCARE INITIATIVES INCREASE RISK FOR DATA

MASSIVE ADOPTION COMPOUNDS THE PROBLEM

95% use digital transformation technologies with sensitive data(cloud, big data, IoT, containers, blockchain and mobile payments)

100%96%92%92%90%

Cloud

Big Data

IoT

Blockchain

Mobile Paymts

New environments require new approaches to protecting citizen data,government secrets and other sensitive information

DEPLOYING SENSITIVE DATA TO THE CLOUD

48%using 3 or more IaaSor PaaS providers

Multi-cloud usage compounds the problem

63% using 3 or morePaaS providers52% Using more than 50 SaaS applications,

where data is inherently harder to control

CONCERNS ARE HIGH(rates of very/extremely concerned) AND RATES OF ENCRYPTION

USAGE TODAY ARE LOW

using encryption inthe cloud today

Only 32%

78%

75%

75%74%

73%

Managing Encryption Keys acrossmultiple cloud environments

Increased vulnerabilities

Data may be at risk if their cloudvendor fails or is acquired

Meeting compliance requirements

Control over the location of data

CONTROLLING DATA IN THE CLOUD

Control of sensitivedata protected withencryption hinges oncontrol of theencryption keys

Local control ofencryption keys

HEALTHCARE GETS IT – CONTROL THE KEYS TO CONTROL THE DATA

48% Local control of cloudencryption keys29%

“The healthcare vertical has emerged as a prime target for hackers. While a stolencredit card has a time-limited value (the card number can be changed), PHI andelectronic medical records (EMR) are stuffed with immutable data that can and dofetch hundreds of dollars per stolen record on illegalonline markets.”

Garrett Bekker – Principal Analyst for Information Security, 451 ResearchAuthor of the 2018 Thales Data Threat Report

HEALTHCARE ADOPTION OF BIG DATA IS HIGHSENSITIVE DATA USE COMPOUNDS PROBLEMS

96%now use big data

38% are using sensitive datawithin big data environments today

Top concerns for sensitive data withinbig data environments

What’s needed to speedBig Data adoption?

29% 28% 28% 25%

Compliancecertificationsfor big data

35%Sensitive data may resideanywhere within the

environment35%

28%

27%

24%

26%

Lack of effectiveaccess controls

Lack of nativesecurity frameworks

Privileged users

Privacy violations

Sensitive datadiscovery andclassification

System levelencryption andaccess controls

Mask data byrole within

big data

Improvedmonitoring andreporting tools

IOT IN HEALTHCAREENCYRPTION REQUIRED

92% Using or planning touse IoT this year

31% are using sensitivedata with IoT applications

Encryption a key tool enablingsafe use of IoT

Encryption establishes secureidentity with digital birthcertificates for IoT devices

Encryption protectsdata-in-transit

Encryption protects dataon devices

Encryption and access controlshelp organizations meetcompliance requirements forback end data stores

Scienti fic andPersonal/Wearables

Medical Environmental

Top concerns with IoT25% 24% 23% 20% 20%

Protecting sensitivedata generated by IoT

Lack of personnelskilled in IoT Security

Loss or theft ofIoT devices

Attacks on IoTdevices

Lack of securityframeworks

25%45% 33%

Top IoT uses in healthcare

ENCRYPTION – A CRITICAL TOOLFOR PROTECTING SENSITIVE DATA

Good news –In spite of low funding, mostorganizations areimplementing or planning toimplement data security toolsthis year

Encryption tools areneeded to drivedigital healthcareinitiatives

48%35%

49%31%

Cloud: Encryption isthe top toolneeded formore cloud use

Big Data: System levelencryption and access

controls

IoT: Secure authentication(an encryption technology)a top tool need for more

IoT adoption

Containers: Availabilityof encryption toolswould increase adoption

www.thales-esecurity.com

2018 THALES DATA THREAT REPORT

Trends in Encryptionand Data Security

U.S. HEALTHCARE EDITION