A new IBM report on data breaches found that the global average cost of a data breach has risen to $4.45 million. This is a 15% jump from 2022. The 2023 report also finds that the cost of detection and escalation has increased by 42% over the past three years. This represents the highest portion of breach costs.
The report also calls on organizations to take a more proactive approach to cybersecurity by investing in security measures and employee training.
Key Findings
- The global average cost of a data breach is $4.45 million, an increase of 15% from 2022.
- The cost of detection and escalation has increased by 42% over the past three years, representing the highest portion of breach costs.
- Nearly 40% of data breaches studied resulted in the loss of data across multiple environments including public cloud, private cloud, and on-prem—showing that attackers were able to compromise multiple environments while avoiding detection.
- The average costs of a studied breach in healthcare reached nearly $11 million in 2023 – a 53% price increase since 2020.
- Half of the breached organizations are unwilling to increase security spending despite soaring breach costs.
- 95% of organizations have experienced more than one data breach.
- The average time to detect a data breach is 280 days.
- The average cost of lost business productivity due to a data breach is $1.8 million.
- The average cost of regulatory fines and penalties due to a data breach is $1.2 million.
- The average cost of legal fees due to a data breach is $800,000.
These statistics show that the cost of data breaches has risen for organizations. The report also highlights the importance of investing in security measures, such as employee training and vulnerability remediation, to reduce the risk of a data breach.
Key Takeaways
- The use of cloud computing is increasing the attack surface for organizations.
- Ransomware attacks are becoming more sophisticated and costly.
- Third-party vendors are a major source of data breaches.
- Organizations need to adopt a zero-trust security model to protect their data.
This rise in data the cost of data breaches is important to watch. The report on data breach costs concludes by calling on organizations to take a more proactive approach to cybersecurity. By investing in security measures and employee training, organizations can reduce the risk of a data breach and protect their data and reputation.
The IBM Cost of a Data Breach Report is an annual study that examines the financial impact of data breaches on organizations around the world. The report is based on data from over 550 organizations that have experienced a data breach.
Source: Cost of a Data Breach Report 2023
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