IBM Report Shows Average Cost of a Data Breach is $4.45 Million
IBM's latest report on data breaches reveals that the average cost of a data breach has risen to $4.45 million per incident. This is a 1.5% increase from last year and represents a continuing trend of higher costs associated with data breaches.
The report, released annually by IBM Security and the Ponemon Institute, surveyed over 500 organisations that had experienced a data breach in the past year. The study looked at various factors that contribute to the cost of a breach, including detection and response times, lost business, and the amount of data stolen.
One of the key contributors to the rise in the cost of a data breach is the time it takes for a company to identify and contain a breach. The study found that it takes an average of 277 days to identify and contain a breach in 2023 with rising costs of detection and escalation when compared to last year; a 9.7% rise in cost equaling to $1.58 million. This extended timeline not only increases the cost of containing the breach but also leaves companies and businesses vulnerable to ongoing attacks.
Another major factor in the cost of a breach is the amount of data that is lost or stolen. The study found that companies that had over 50,000 records compromised had an average cost of $6.03 million per breach. This highlights the importance of having strong data protection measures in place to prevent large-scale data breaches.
The report also found that certain industries have a higher cost of a data breach than others. Healthcare organisations had the highest average cost of a breach at $7.13 million per breach, while the public sector had the lowest at $3.68 million per breach or $1.50 per record. 80% of incidents resulted in victims' PII (Personally Identifiable Information) being compromised and stolen by threat actors.
What does this mean for you?
Overall, the report highlights the importance of investing in strong security measures to prevent data breaches from occurring. This includes having a comprehensive incident response plan in place, regularly testing and updating security protocols, and ensuring that all employees are aware of their role in maintaining a secure environment.
With the average cost of a data breach continuing to rise, it's clear that businesses cannot afford to overlook the importance of protecting their sensitive data. As cyber threats continue to evolve, companies must stay vigilant and proactive in their efforts to safeguard their data from attack.
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