Simple physical theft of data memory devices is often extremely costly, as demonstrated by Health Net’s Security Breach in 2011 which was devastating in scale with 1.9 million members affected and Health Net still facing the consequences from this Physical Security Breach.
- 9 server drives were stolen from its IBM managed data center in Rancho Cordova, CA
- 1.9 M member records missing. Including names, addresses, health information and social security numbers
- Reported in March 2011 but company was notified by IBM in January 2011
- Along with fines, legal costs, notification costs, etc. The company is providing two years of free credit monitoring services to each members
- According to the Ponemon Institute the average cost of a breach is $7M+