Data breaches getting costlier for businesses

Average cost of such attacks has reached an all-time high of $4.35 mn, says an IBM Security report.

Data breaches getting costlier for businesses
With breach costs increasing by nearly 13% over the last two years, the findings suggest these incidents may also be contributing to rising costs of goods and services.

IBM Security has released its annual Cost of a Data Breach Report, revealing costlier and higher-impact data breaches than ever before, with the global average cost of a data breach reaching an all-time high of $4.35 million for surveyed organisations. With breach costs increasing by nearly 13% over the last two years, the findings suggest these incidents may also be contributing to rising costs of goods and services.

In fact, 60% of studied organisations raised their product or service prices due to the breach, at a time when the cost of goods is already soaring worldwide owing to inflation and supply chain issues.

The 2022 Cost of a Data Breach Report is based on in-depth analysis of real-world data breaches experienced by 550 organisations globally between March 2021 and March 2022. The research, which was sponsored and analysed by IBM Security, was conducted by the Ponemon Institute.

The perpetuality of cyberattacks also sheds light on the “haunting effect” data breaches are having on businesses, with the IBM report finding 83% of studied organisations have experienced more than one data breach over their existence. Another factor growing in weight is the after-effects of breaches on these organisations, which linger long after they occur, with nearly 50% of breach costs being incurred more than a year after the breach.

The report reveals that almost 80% of critical infrastructure organisations studied don’t adopt zero trust strategies, seeing average breach costs rise to $5.4 million – a $1.17 million increase compared to those that do.

Getting worse

Data breach costs have increased by nearly 13% over the last two years;
— The findings suggest these incidents may be contributing to rising costs of goods and services. In fact, 60% of entities raised their product or service prices after the breach;
— The perpetuality of cyberattacks also sheds light on the “haunting effect” data breaches are having on businesses
.

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