According to the annual “Cost of a Data Breach Report 2024” released by IBM, the global average cost of a data breach was around $4.88 Million in 2024. The rise in disruption caused due to data breaches has started creating a demand for cybersecurity experts. As per last year’s report, there has been a rise of 10% between 2023 and 2024 which is also the largest rise since the pandemic.
On the other hand, 70% of organizations had to face severe disruption caused by data breaches.
Post data breach, organizations with other third-party response costs have driven the YoY spike. The collateral damage caused by data breaches is only intensified in all terms. Data breaching had an effect where it took up to 100+ days to recover. Only 12% of small organizations were able to recover.
As per the research conducted by Ponemon Institute, sponsored and analyzed by IBM Report of 2024 Cost of Data Breach, around 604 organizations experienced data breaches.
Key highlights that have been discovered by IBM
Shortage in security teams
It was seen that most of the organization had a shortage of staff and they had to face a loss of $1.76 million due to higher breach costs as compared to the low-level or no-security staffing issues.
AI and automation in security
Automation results are the most effective by reducing average costs.
Reports have also stated that 70% of Organizations have started deploying AI-powered security and automation which resulted in an average of $2.2 million less in breach costs.
Data visibility gaps
Around 40% of breaches have involved the data stored across multiple environments such as public cloud, private cloud, and on-premises. These breaches cost more than $5 million on average and took the longest to identify and contain (283 days).
“Businesses are in a continuous loop cycle of breaches, containment, and fallout response. This cycle now often includes investments in strengthening security defenses and passing breach expenses on to consumers – making security the new cost of doing business,” said Kevin Skapinetz, VP of Strategy and Product Design, at IBM Security.
Kevin added, “As generative AI rapidly permeates businesses, expanding the attack surface, these expenses will soon become unsustainable, compelling businesses to reassess security measures and response strategies. To get ahead, businesses should invest in new AI-driven defenses and develop the skills needed to address the emerging risks and opportunities presented by generative AI.”
Latest News: MarTech 101: Understanding the Basics and Its Importance in Modern Marketing
Other Key Highlights of the 2024 Breach Report Includes
Stolen Credentials Topped Initial Attack Vectors
Stolen credentials/compromised credentials were the most common initial attack by vectors. Also, these breaches took the longest to identify & were contained for around 10 months.
Law Enforcement – Ransomware victims saved $1 Million in data breach costs by Introducing law enforcement these savings did not include the ransom payments. Whereas 63% of the organizations that involved law enforcement were also able to avoid paying a ransom.
Read More: Programmatic CTV Buying at Peak; Buyers Shopping for Alternative Measurement Currencies
Critical Infrastructure Organizations See the Highest Breach Costs
Most organizations from healthcare, financial services, industrial technology, and energy incurred significant breach costs in the last 2 years. As per the past 14 years’ records, it has been noticed that the healthcare participants had to see the high-priced breaches across the industries where an average breach cost around $9.77 Million.
Breach Costs Affecting the Customers
Breach costs have started affecting organizations severely. Sixty-three percent of organizations stated that they would increase the cost of goods, passing the inflation to the customers, from last year.
MarTech News of the Week: Outbrain-Teads Merger: A Billion-Dollar Deal To Transform AdTech
Conclusion:
In the wake of data breach events, it becomes imperative to take action to prevent these breaches. Check out the recommendations based on the findings of the Cost of a Data Breach Report from the IBM website and learn how to better secure your organization. To stay updated with the latest in marketing technology, stay subscribed to our publication.
