Research Identifies Gaps in Safeguards, Data Governance, and Consumer Controls as Major Drivers of Multi-Billion Dollar Penalties
SAN FRANCISCO, Calif. — Secureframe, a leader in cybersecurity and compliance automation, today released new research that analyzes the 12 largest regulatory penalties from 2023 to 2025. The report reveals that non-compliance can cost organizations 2.71 times more than maintaining robust compliance programs.
Key findings include:
- HIPAA Penalties Linked to Data Protection Failures: Analysis of $144.9 million in HIPAA fines reveals that inadequate safeguards for electronic protected health information (ePHI) were the primary cause. Multiple breaches exposing sensitive patient data, such as Montefiore Medical Center’s $4.75 million settlement, resulted in the largest penalties.
- Technical and Organizational Gaps Fuel GDPR Violations: European regulators imposed €4.48 billion in fines across 2,086 cases, mainly targeting insufficient legal grounds for data processing and inadequate security measures. Companies lacking comprehensive data governance frameworks were hit hardest.
- CCPA Enforcement Targets Consumer Rights Violations: California’s increasing focus on privacy led to substantial fines for companies that failed to provide required consumer opt-out mechanisms or mishandled data access requests. This signals a trend toward stricter enforcement in the future.
Strategies for Avoiding Non-Compliance Penalties
Secureframe’s research outlines five key strategies for organizations to avoid costly penalties:
- Implement Robust Security Frameworks: Adopt industry-recognized standards with strong encryption, access controls, and detection systems to safeguard sensitive data.
- Invest in Specialized Training: Develop training programs focused on regulatory requirements and secure data handling practices.
- Conduct Regular Compliance Audits: Set up proactive audits to identify compliance gaps before regulators do.
- Leverage Automation Technology: Utilize tools that continuously monitor compliance status and identify potential issues before they escalate.
- Adopt a Proactive Approach to Compliance: Shift from reactive compliance strategies to proactive ones, integrating continuous monitoring and improvements into everyday operations.
“Our research confirms what forward-thinking security leaders already know – reactive compliance approaches are exponentially more expensive than proactive programs,” said Shrav Mehta, CEO of Secureframe. “Organizations that leverage automation and expertise to build continuous compliance into their operations don’t just avoid penalties – they create competitive advantages through stronger security postures and enhanced customer trust.”
Click here to read the full report.
For more information about Secureframe, visit www.secureframe.com.
About Secureframe
Secureframe empowers businesses to build trust with customers by automating information security and compliance. Thousands of fast-growing organizations such as AngelList, NASDAQ, Smartcar and Lyra trust Secureframe to simplify and expedite their compliance journey for global security and privacy standards such as SOC 2, ISO 27001, ISO 42001, NIST CSF, PCI DSS, HIPAA, GDPR and more. Backed by top-tier investors and corporations such as Google, Kleiner Perkins, and Accomplice Ventures, the company is amongst the Forbes list of Top 100 Startup Employers for 2024.
