average cost of data breach 2021
Global findings and highlights average costs in 17 countries and 17 industries, including the top country (the United States: $9.05 million) and top industry (healthcare: $9.23 million). Accessed June 02, 2023. https://www.statista.com/statistics/987474/global-average-cost-data-breach/, IBM. Delivered via email so please ensure you enter your email address correctly. Now in its 17th year, the report, conducted by Ponemon Institute, studied 550 organizations impacted by data breaches between March . To mitigate data loss and minimize associated expenses, businesses can develop data breach response plans or take out insurance for potential cyber-attacks. Data breach costs are not the only concern associated with cyber attacks. Retail ranks 15th on the list of most costly data breaches. The intrusion was only detected in September 2021 and included the exposure and potential theft of . According to the report, companies that experienced a cloud-based data breach that had a hybrid cloud lost $3.61 million on average while those that had a public cloud or private cloud lost between $4.80 and $4.55 million on average. 2. $6.03M $4.11M $2.45M Not deployed Partially deployed Fully deployed "Average cost of a data breach worldwide from 2014 to 2022 (in million U.S. Taking a closer look at the costs based on the size of a company's database, the average cost of a data breach per record is $150. Organisations in a mature stage of zero-trust deployment had an average cost of a breach of $3.28 million, $1.76 million less than organisations without zero-trust implementations in place. 15. These recommendations include leveraging security orchestration, automation and response technologies and services; creating and practicing an incident response plan; identify and access management for remote employees; and employing a zero trust security model to help prevent unauthorized access to sensitive data. to incorporate the statistic into your presentation at any time. Copyright 2014-2023 HIPAA Journal. British Airways . This year's final total - $4.24 million per incident on average - is actually the highest figure since the report, which is carried out annually by the Ponemon Institute and sponsored by IBM, originated 14 years ago. And given the extraordinary cost of a data breach, these attacks can be financially devastating for most SMBs. The cost of different types of records, including customer personally identifiable information the most frequently breached and the most expensive at $180 per record. Copyright Fortra, LLC and its group of companies. Cybercrime is expected to inflict annual damages of $10.5 trillion by 2025. 5. When breaking down the factors that contributed to the overall cost of a data breach, the report found that lost business carried the highest cost, accounting for 38% of the average total cost of a data breach for a total of $1.59 million. 13. The Cost of a Data Breach in 2021 | Endpoint Protector This left many companies struggling to secure vast networks of remote employees accessing systems. Lost business, according to the report, accounts for 38 percent of a data breach's total cost, roughly $1.59 million. [Online]. Data Breach Numbers, Costs and Impacts All Rise in 2021 - GovTech As cyber-attacks become more frequent and the cost of a data breach continues to rise, businesses may wonder what goes into making data breaches so expensive.Here are the four main categories of data breach costs: This category includes the costs associated with identifying a data breach and mitigating the damage. A paid subscription is required for full access. According to data from Gartner, 88% of boards have deemed cybersecurity a business risk rather than "a technical IT problem." Enterprises are Taking Longer to Identify and Contain Data Breaches. Data breach costs are a concern for every organization. This statistic is not included in your account. Instead, they must implement the right strategies and technologies for the organizations specific needs and level of accepted risks. The CODBR 2021 shows public cloud-based breaches cost the most - an average of $4.80 million USD - while breaches in hybrid cloud-based models cost the least at $3.61 million USD. Organisations that took longer to identify data breaches also had a higher overall incident cost. This is up nearly sevenfold compared to the $1.5 billion invested in 2011. The share of cyber attacks perpetrated with ransomware increased by 41% year over year. TheMoneyManiac.com. The 2021 Cost of a Data Breach Report from IBM Security and Ponemon Institute is based on in-depth analysis of real-world data breaches of 100,000 records or less, experienced by over 500 organizations worldwide betweenMay 2020 and March 2021. The report not only highlighted that the cost of data breaches is on the rise but also showed that enterprises are taking longer to contain security incidents. Data breach costs were 18.8% higher when a breach was experienced during a cloud migration project. There was a 10% year-over-year increase in data breach costs, with the average cost rising to $4.24 million per incident. $("#wpforms-form-28602 .wpforms-submit-container").appendTo(".submit-placement"); Cost of a Data Breach Report 2022: Executive Summary - IBM From 2011 through 2021, the number of data compromises in the United States is up over 340%. Detection requires both data monitoring and data analysis tools such as honeypots, antivirus software, firewalls, and data loss prevention (DLP) tools. Companies in the study that experienced a breach during a cloud migration project had 18.8% higher cost than average. This is the highest amount in the 17-year history of IBM's annual data breach costs report, with the average cost of an incident in the UK rising by 8% to 3.36 million. With employees forced to work remotely during the pandemic, organizations had to rapidly adapt their technology. What Determines the Cost of a Data Breach? Companies may take years to recover from data breaches depending on the volume of data exposed and any legal ramifications. As the costs of data breaches continue to spiral and increase as threats become more difficult to contain, organisations need to adapt and invest in technologies and approaches that can optimise their incident prevention and resolution capabilities. Global average cost of a data breach by industry 2022 | Statista According to Statista, the cost of a data breach is on the rise. For those interested, it's worth digging into the report in its entirety to get the full scope. Additionally, for cloud-based data breaches studied, companies that had implemented a hybrid cloud approach had lower data breach costs ($3.61m) than those who had a primarily public cloud ($4.80m) or primarily private cloud approach ($4.55m). Tags: The report found that these factors had a significant impact on data breach response. Symantec reports that more than 4,800 unique websites are attacked in this way each month. Security automation greatly reduces data breach costs. According to the report, it's taking 212 days to identify and 75 to contain a breach, thats longer than any period over the last five years. Breach containment is essential, and zero trust security principles can be applied to curtail attacks across IT environments, minimizing business disruption proactively. Initially, this requires data mapping and classification to identify the correct subjects and exposed data. About IBM Security 10. This is unsurprising, given the complex web of regulations that healthcare and finance organisations need to navigate. The global cybersecurity market is expected to grow 9.7% annually and reach $345.4 billion by 2026. [3] Plus, ransomware is on the rise. 7 Key Findings from the Cost of a Data Breach 2021 Report - Integrity360 The average cost of a data. $9.23 million on average, more than double the cost on average of a data breach this past year. Prominent companies around the world are increasingly viewing data security as a core business risk, and boards of directors are taking proactive steps to ensure data protection. $1.12M. Global average cost of a data breach 2022 | Statista A data breach involving email addresses, usernames, and passwords can easily have a spiral effect, as hackers can use the compromised data in further attacks. you are not alone. He is a specialist on healthcare industry legal and regulatory affairs, and has several years of experience writing about HIPAA and other related legal topics. The Cost of a Data Breach 2022 report by @IBM reveals that on a global scale, the average cost of a #databreach stands at a significant USD 4.35 million. Daniel J. Lohrmann is an internationally recognized cybersecurity leader, technologist, keynote speaker and author. For cloud-based data breaches studied, organizations that had implemented a hybrid cloud approach had lower data breach costs ($3.61m) than those who had a primarily public cloud ($4.80m) or . [12] After three environmental threats, the WEF lists data theft and cyber attacks as the fourth and fifth most likely threats. The average price of a data breach increased by about half a million dollars, from USD $3.86 million to $4.24 million. Like years past, its seemingly taking longer than ever for organizations to identify and contain a data breach, 287 days, more than three quarters of a year. Fortunately, the explosion in data breach costs and the prevalence of cyber-attacks are not going unnoticed. However, the study also found that those who were further along in their overall cloud modernization strategy ("mature" stage) were able to detect and respond to incidents more effectively 77 days faster on average than those who were in early-stage adoption. Phishing and ransomware continue to be, far and away, the primary attack vectors. The cost of a breach was $750,000 higher than average at organizations that had not undergone any digital transformation due to COVID-19 (16.6% higher than the average). And even after a data breach is resolved, legal costs often remain an ongoing expense for afflicted companies. 2021 saw the highest average cost of a data breach in 17 years, with a total of $4.24 million. Lost business costs include: In 2021, the U.S. saw 1,862 data compromises. Mature organizations successfully contained the breach 77 days faster than those who were in the early stage of their deployments (252 vs. 329 days). Digital transformation, cloud adoption, hybrid work environments and geopolitical and economic challenges all have a part to play. Cybersecurity Ventures is correct, this number will exceed every national GDP except for the U.S. and China within 2 years. The number is a 10 percent increase over last years total, $3.86 million per incident on average. A month ago, Ponemon and IBM released the Cost of a Data Breach 2021 report, an annual study on the cost of data breaches and the modern threat landscape. The research for this report showed that faster incident response times were associated with substantially lower costs, with a cost savings of nearly 30% if a breach was contained in less than 200 days. Ransomware is a category of malware designed to block access to computer systems until a ransom is paid. Higher data breach costs are yet another added expense for businesses in the wake of rapid technology shifts during the pandemic, saidChris McCurdy, Vice President and General Manager, IBM Security. ", IBM, Average cost of a data breach worldwide from 2014 to 2022 (in million U.S. dollars) Statista, https://www.statista.com/statistics/987474/global-average-cost-data-breach/ (last visited June 02, 2023), Average cost of a data breach worldwide from 2014 to 2022 (in million U.S. dollars) [Graph], IBM, July 27, 2022. Your guide to technology in state & local government. Not only are data breach costs up, but data breaches are also becoming much more common. Cost of a Data Breach - IBM The research also highlighted that zero-trust approaches help reduce the costs of data breaches, though not as dramatically as AI and automation. 7. Frequency and cost of various initial attack vectors including the top three most common: compromised credentials (20% of breaches), phishing (17%) and cloud misconfigurations (15%). In this article well discuss what scalability is in cloud computing, the benefits of cloud computing scalability, and discuss ways businesses use scalability. Response requires a data breach assessment, containment, and IT support or consulting services. Spotlight: business approaches to cyber security, Facebook: quarterly number of MAU (monthly active users) worldwide 2008-2023, Instagram accounts with the most followers worldwide 2023, Number of apps available in leading app stores Q3 2022, Most popular global mobile messaging apps 2023, Twitter: number of monthly active users 2010-2019, Internet usage in India - statistics & facts, Profit from additional features with an Employee Account. statistic alerts) please log in with your personal account. According to a 2021 report from IBM and the Ponemon Institute, the average cost of a data breach among companies surveyed reached $4.24 million per incident in 2021, the highest in 17. The average cost of a data breach for critical infrastructure . 16. Like last year, most breaches (44%) involved sensitive customer personally identifiable information, or PII. The Cost of a Data Breach Report highlights how the Factor Analysis of Information Risk (FAIR), an open international standard for cyber risk modeling, combined with threat intelligence, can help organizations assess the potential impacts of cyber risks through financial projections and probabilities. Business email compromise attackers were the initial attack vector with the highest overall cost, with an average cost of $5.01 million. Organizations must take data security seriously, but theyre not always successful. In their research, the Institute examined 537 breaches across 17 countries and 17 different industries. For Q3 2021,the number ofdata compromise victims(160 million) ishigher than Q1andQ2 2021 combined (121 million). The report also found that more companies were deploying security automation compared to prior years, leading to significant cost savings. More Data Protection Solutions from Fortra >, With $10M Settlement, Target Looks to Shrug off Breach Costs, High Drama in HIPAA Land: the CoPilot Breach, The seven trends that have made DLP hot again, How to determine the right approach for your organization, Selling Data Classification to the Business. Media Contact: [7] With nearly $10 billion deployed toward these software startups in 2019 alone, data protection is a major focus for the modern global economy. The ideal entry-level account for individual users. Data breaches caused by compromised credentials were the most difficult to contain, taking an average of 341 days, compared to Business email compromise at 317 days, malicious insiders at 306 days, phishing at 293 days, physical security compromise at 292 days, and social engineering at 290 days. Those types of attacks cost businesses between $4.62 and $4.69 million on average, with much of the sum likely attributed to downtime, lost business, and the costs accrued by having to rebuild systems from backups if not from scratch entirely. Big businesses may be the primary target of cybercrime, but small businesses are just as vulnerable. Plus, any risk inherent to your tech stack components becomes your risk whether you like it or not. Organizations that were further into their cloud migration plan were able to detect and respond to data breaches far more quickly on average 77 days more quickly for organizations that were at a mature state of their cloud modernization plan than those in the early stages. Steve has developed a deep understanding of regulatory issues surrounding the use of information technology in the healthcare industry and has written hundreds of articles on HIPAA-related topics. The global average cost per data breach was 4.35 million U.S. dollars in 2022. The HIPAA Journal is the leading provider of news, updates, and independent advice for HIPAA compliance. Cancel Any Time. Not only does it appear that AI, automation and zero trust technologies are helping limit the damages, more companies are also entering a mature stage in their deployment. Compromised or stolen login credentials represent 19% of cyber attacks, narrowly surpassing phishing as the most common cause of security breaches. Cost of a Data Breach: Retail Costs, Risks and More To Know Cost of a Data Breach Report 2022 - IBM While this is likely due to the fact that the longer it takes to contain an incident, the greater the chance of data loss, downtime, and regulatory liabilities, it also depended heavily on the initial attack vector. 1IBM Institute for Business Value: COVID-19 and the future of business Companies with an incident response team that also tested their incident response plan had an average breach cost of $3.25 million, while those that had neither in place experienced an average cost of $5.71 million (representing a 54.9% difference.). For comparison, last year it took on average 207 days to identify and 75 days to contain. CAMBRIDGE, Mass., July 28, 2021 / PRNewswire / -- IBM (NYSE: IBM ) Security today announced the results of a global study which found that data breaches now cost surveyed companies $4.24 million per incident on average - the highest cost in the 17-year history of the report. Let's take a look at all the data, from the average cost of a data breach in the US to how many days an organization usually spends on containment. 4. This represents a 10.3% increase from 2020 to 2021. According to the Ponemon Institute survey, 82% of individuals reuse passwords across multiple accounts. The average cost of a data breach in the healthcare industry is $10.10 million. According to IBM, data breaches costs were more than $1 million higher when remote work was indicated as a factor in the data breach. After this process is complete, data breach notification letters must be drafted, printed, and mailed out to customers.Companies typically have to pay for data breach phone hotlines and websites as well. These proactive measures will help to protect data and reduce data breach costs in the long term. The Cost of a Data Breach - THE SAFE - Northwestern University The World Economic Forum considers large-scale cyber attacks one of the top five most likely global risks. Join StrongDM featuring Forrester for this upcoming webinar. As we saw in last years report, survey participants predicted that the rapid onset of remote work and other factors due to the pandemic would increase the costs associated with data breaches and the amount of time to contain them. The research also found that incident response strategies had a significant role to play in reducing costs, with the average cost of a data breach totalling $3.25 million in organisations with incident response capabilities compared to $5.71 million in organisations without an incident response plan in place. [1] And the most significant contributor to data breach costs is time until detection.The sooner businesses can identify a vulnerability, the fewer resources they will typically need to spend on remediating it. Watch on What you need to know: Report analyzes 29,207 quality incidents, of which 5,258 were confirmed breaches Phishing attacks increased by 11 percent, while attacks using ransomware rose by 6 percent 85 percent of breaches involved a human element, while over 80 percent of breaches were discovered by external parties IBM operates one of the world's broadest security research, development and delivery organizations, monitors150 billion+ security events per day in more than 130 countries, and has been granted more than 10,000 security patents worldwide. 19. While the amount jumps around, the solutions saved companies - at least those consulted for the report - between $1.25 million and $1.49 million. Global average total cost of a data breach $3.86 M Cost of a Data Breach Report 2020 Security automation saved millions Security automation - using technologies such as AI, analytics and automated orchestration - was most effective at mitigating data breach costs. Companies that have practiced implementing their plan save $2.66 million in data breach costs on average.