The HIPAA Journal is the leading provider of news, updates, and independent advice for HIPAA compliance. 2 Average cost of $4.96 million for those surveyed where remote work was a factor vs. $3.89 million when remote work was not a factor The large year-over-year increase in data breach costs has been attributed to the drastic operational shifts due to the pandemic. icate that organisations offering work from home opportunities to employees need to ensure that security best practices are maintained off-site, or they leave themselves at risk of encountering security incidents that are more difficult to contain. 4,800+ websites per month are compromised with malicious code in form-jacking attacks. Investments in incident response teams and plans also reduced data breach costs amongst those studied. About IBM Security Key findings Now in its 17th year, the report, conducted by Ponemon Institute, studied 550 organizations impacted by data breaches between March . [9] And 13% of boards have gone a step further in creating committees specifically designated to managing data security topics. Top Takeaways from IBM's 2021 Cost of a Data Breach Report - Bluefin Breach containment is essential, and zero trust security principles can be applied to curtail attacks across IT environments, minimizing business disruption proactively. However, the number ofdata breachesthrough September 30, 2021 has exceeded the total number of events in full-year 2020 by 17 percent(1,291 breaches in 2021 compared to 1,108 breaches in 2020). For comparison, last year it took on average 207 days to identify and 75 days to contain. If the numbers in IBM's annual Cost of a Data Breach Report are to be believed, the figure went up over the last 12 months, an increase that's largely being attributed to the COVID-19 pandemic's effect on organizations and their ability to respond to data breaches. 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. 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. 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. Levels of automation increased. The most common types of data exposed in data breaches were customers personal data such as names, email addresses, passwords, and healthcare data. 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. [13] Similarly, Yahoo penned a $117 million deal for their multiple data breaches that affected billions of users. Businesses were forced to quickly adapt their technology approaches last year, with many companies encouraging or requiring employees to work from home, and 60% of organizations moving further into cloud-based activities during the pandemic.1 The new findings released today suggest that security may have lagged behind these rapid IT changes, hindering organizations' ability to respond to data breaches. Cloud modernization appeared to help decrease breach response times. Cloud scalability offers flexibility at a reasonable price, making it an important business tool. 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. 3The 2021 Cost of a Data Breach Report examines the cost of a mega breach based on a separate analysis of a specific sample involving loss or theft of one million records or more. The most common root cause of data breaches in the past year were compromised credentials, which accounted for 20% of data breaches. This article will review the latest statistics on data breach costs and several best practices for eliminating unauthorized data access. 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. The biggest data breaches, hacks of 2021 | ZDNET 6. Ransomware attacks cost an average of $4.62 million per incident. Those organizations with a "fully deployed" security automation strategy had an average breach cost of $2.90 million whereas those with no automation experienced more than double that cost at $6.71 million. Remote working due to the pandemic also impacted the speed of response, increasing the time to identify and contain data breaches. 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. Average cost of a data breach worldwide from 2014 to 2022 (in million U.S. dollars) [Graph]. The Average Cost of a Healthcare Data Breach is Now $9.42 Million In fact, organisations that had more than 50% of their workforce working remotely took 58 days longer to identify and contain breaches than those organisations with 50% or less employees working remotely. $1.12M. 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. And given the extraordinary cost of a data breach, these attacks can be financially devastating for most SMBs. The public sector wasnt alone in seeing cost increases; the retail, media, hospitality, and communications industries also had an increase in average data breach costs. 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. What's New in the 2021 Cost of a Data Breach Report One prime example of how cyber risk affects business value is in mergers and acquisitions, where an undisclosed data breach at the acquired company could contribute to the company losing value. If you are an admin, please authenticate by logging in again. 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. There was a 10% year-over-year increase in data breach costs, with the average cost rising to $4.24 million per incident. This left many companies struggling to secure vast networks of remote employees accessing systems. Even then, data breach costs rarely cease after the incident has been rectified. In 2022, it took an average of 277 daysabout 9 monthsto identify and contain a breach. 12. Organisations that took longer to identify data breaches also had a higher overall incident cost. According to the Ponemon Institute survey, 82% of individuals reuse passwords across multiple accounts. Like last year, most breaches (44%) involved sensitive customer personally identifiable information, or PII. The average time taken for organisations to contain data breaches was 287 days in 2021, 7 days more than in 2020. 2021 saw the highest average cost of a data breach in 17 years, with a total of $4.24 million. For Q3 2021,the number ofdata compromise victims(160 million) ishigher than Q1andQ2 2021 combined (121 million). Cost of a Data Breach Report 2022: Executive Summary - IBM Phishing and ransomware continue to be, far and away, the primary attack vectors. Clearly, the perimeter no longer exists. Receive weekly HIPAA news directly via email, HIPAA News For example, a companys cyber risk can directly impact its credit rating. Author: Steve Alder is the editor-in-chief of HIPAA Journal. TheMoneyManiac.com. $4.35 million The average cost of a data breach statistic alerts) please log in with your personal account. 19. 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. $10.10M Average total cost of a breach in the healthcare industry Initial attack vectors [12] After three environmental threats, the WEF lists data theft and cyber attacks as the fourth and fifth most likely threats. The global average cost of a data breach in the measured period was 4.35 million U.S. dollars. Copyright Fortra, LLC and its group of companies. 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. dollars)." 5. And the average cost of a destructive attack is $5.12 million. As a Premium user you get access to the detailed source references and background information about this statistic. 17. For example, organisations using AI and automation experienced an 80% lower average data breach cost, a total of $2.90 million compared to $6.71 million in organisations without AI or automation. Cost of a Data Breach Report 2020 | IBM 16. you are not alone. Compromised credentials are the leading cause of data breaches. First and foremost, data loss and data recovery costs include forgone revenue from data that can no longer be used. The most frequent initial attack vectors identified in the study were compromised credentials, accounting for 20% of breaches, followed by phishing attempts (17%), cloud misconfiguration (15%), and business email compromise (4%). - Data breaches cost surveyed companies $4.24 million per incident on average; highest in 17-year report history, - Adoption of AI, hybrid cloud, and zero trust approach lowered data breach costs, IBM Consulting unveils Center of Excellence for generative AI, IBM Tech Now: IBM Watson Code Assistant, IBM Hybrid Cloud Mesh and IBM Event Automation, Combining Generative AI with IBM Watson, Mitsui Chemicals Starts Verifying New Application Discovery for Agility and Accuracy. The report takes into account hundreds of cost factors involved in data breach incidents, from legal, regulatory and technical activities to loss of brand equity, customers, and employee productivity. Lost business costs include: Such a rapid change resulted in vulnerabilities being introduced and security often lagged behind the rapid IT changes. cllalan@us.ibm.com. Cloud computing isnt a trend, its how businesses grow. Was ransomware the culprit? How Much Does a Data Breach Cost in 2021? Response requires a data breach assessment, containment, and IT support or consulting services. What Determines the Cost of a Data Breach? Organizations of all sizes are increasingly vulnerable to breaches as their attack surfaces continue to grow and become more difficult if not impossible to define. And the average cost of a data breach in the financial industry is $5.97 million. With society leaning more heavily on digital interactions during the pandemic, companies embraced remote work and cloud as they shifted to accommodate this increasingly online world. Average cost of data breaches hits record high of $4.35 million: IBM Show me the numbers where are the documented increases, and what did they truly cost? Compromised Credentials May be the Most Common Threat but they Dont Have the Highest Average Cost. Part of the reason for the effectiveness in reducing costs is that a well-thought-out incident response plan can decrease the amount of time it takes to contain security incidents and lessens the overall financial impact of a breach. Were there compliance failure? Data breaches happen every day, and they are only becoming more common. The average cost per record stolen also saw a substantial upshoot, increasing from $141 in 2017 to $161 in 2021, a total of 14.2%. Steve is responsible for editorial policy regarding the topics covered on HIPAA Journal. 2. One of the reports clearest takeaways is that COVID-19 and the shift by many companies worldwide to a distributed workforce had a direct effect on the cost of a data breach. The report also highlighted that decentralised remote working environments increase the impact of data breaches considerably. 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 cost accounts for a range of business costs arising from a data breach, from initial business disruption to revenue loss due to downtime, customer loss, customer acquisition, and reputational damage. Last week, we examined new legislation that would. A paid subscription is required for full access. Data Breach Numbers, Costs and Impacts All Rise in 2021 - GovTech 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). 4. Destructive attacks, on the other hand, are malicious data breaches designed to disrupt or destroy an information system or the information itself.Data from IBM shows that these types of breaches are particularly costly. 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. Taking steps such as investing in an incident response plan, implementing AI, automation, and zero-trust is key for decreasing the costs of security incidents in the future and for avoiding the devastation associated with lost business and reputational damage. In the 2021 study, the average total cost of a data breach increased by nearly 10% to $4.24 million, the highest ever recorded. The share of organizations with fully or partially deployed security AI and automation rose to 65% in the 2021 study, compared to 59% in 2020. For many of these questions, the story remains the same. Among the top findings in this years report, we saw: The report also looked into the impacts of data breaches in the cloud, and the influence of cloud migration on breach costs. This may include data protection system updates, data deletion protocols, or data encryption processes. As boards take data security more seriously, C-suite executives are being held to a higher standard as well. [5] This estimation factors in both an increase in hacking activity and a larger digital. The average security breach cost is more than $1 million higher when remote work is a contributing factor. Although compromised credentials were involved in the highest proportion of data breaches, they didnt have the highest average cost. The media industry nearly doubled its total average cost, reaching $3.17 million/breach, a 92.1% increase from 2020. The average data breach took 277 days to resolve in 2022. And even after a data breach is resolved, legal costs often remain an ongoing expense for afflicted companies. Companies in the study that experienced a breach during a cloud migration project had 18.8% higher cost than average. To compile the report, IBM conducted an in-depth analysis of data breaches involving fewer than 100,000 records at 500 organizations between May 2020 and March 2021, with the survey conducted by the Ponemon Institute. This article defines seven key cybersecurity insurance requirements. Healthcare data breach costs increased from an average total cost of $7.13 million in 2020 to $9.23 million in 2021, a 29.5% increase. These findings suggest that enterprises need to invest in more cost-efficient technologies for detecting security incidents while planning and optimising their incident response processes to enhance post-breach response. How Much Does a Data Breach Cost in 2021? | CardConnect For optimal browsing, we recommend Chrome, Firefox or Safari browsers. openbusinesscouncil on Twitter: "1. The Cost of a Data Breach 2022 Cancel Any Time. You only have access to basic statistics. Additional findings from the 2021 report include: Methodology and Additional Data Breach Statistics Use Ask Statista Research Service. Ron Kness / Oct 1, 2021 Cybersecurity In a recent report, IBM reported the findings of a Ponemon Institute research project as far as the cost of a data breach. Almost 20% of organizations that reported data breaches in 2020 cited remote work as a factor, with the cost of a data breach around 15% higher when remote work was a factor. If customer data is breached, companies may have to pay for legal representation and any associated fines or settlements. Cybercrime is expected to inflict annual damages of $10.5 trillion by 2025. The report looked at breaches at 537 organizations from May 2020 to March 2021 and found that those that acknowledged that remote work was a factor in their breach suffered a higher loss ($4.96 million) compared to those who didn't ($3.89 million) a 15 percent difference. This cost was slightly higher than the Nearly 20% of organizations studied reported that remote work was a factor in the data breach, and these breaches ended up costing companies $4.96 million (nearly 15% more than the average breach). The annual Cost of a Data Breach Report, conducted by Ponemon Institute and sponsored and analyzed by IBM Security, identified the following trends amongst the organizations studied: "Higher data breach costs are yet another added expense for businesses in the wake of rapid technology shifts during the pandemic," said Chris McCurdy, Vice President and General Manager, IBM Security. Businesses that protect computer networks from cyber threats are seeing significant tailwinds as consumers, governments, and corporations invest more in prevention and recovery. [8]As online security threats and data breach costs continue to rise, businesses must remain vigilant and invest in data privacy initiatives to mitigate their risks. Where was the company located? Daniel Anderson, Marketing Expert, Daniel Anderson is a marketing expert who writes about entrepreneurship, business, and personal finance. In the 2021 study, the average total cost of a data breach increased by nearly 10% to $4.24 million, the highest ever recorded. Register now! Adhering to these requirements will ensure youve covered your bases in case of a claim. Lost Business is the Biggest Cost of a Data Breach, These findings suggest that enterprises need to invest in more cost-efficient technologies for detecting security incidents while planning and optimising their incident response processes to enhan, The report also highlighted that decentralised remote working env. These proactive measures will help to protect data and reduce data breach costs in the long term. Want to find out how an incident response plan can cut data breach costs. As soon as this statistic is updated, you will immediately be notified via e-mail. Hybrid cloud breaches had a lower average cost compared to public, private and on-premise cloud models. The total number of cyber attack-related data compromises year-to-date (YTD) is up 27 percent compared to FY 2020. Struggling to implement least privilege in your organization? Breaches involving customers personally identifiable information (PII) were more expensive than breaches involving other types of data, with a cost per record of $180 when PII was involved compared to the average of $161 per record for all types of data. The cost associated with the root cause also went down from previous years. 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. At organizations with a greater than 50% remote work adoption, it took an average of 316 days to identify and contain the breach. by Chris Brook on Monday August 22, 2022. The average cost for each individual record was 131, meanwhile, with the records in the services sector proving the most lucrative, at 191 per record. In 2021, $4.24 million was spent on average to deal with a data breach incident. As of March 2022, the healthcare industry faces the most expensive data breach costs of any sector. Impact of Remote Work and Shift to Cloud on Data Breaches Global average cost of a data breach 2022 | Statista Approximately 45% of breaches happen in the cloud, but not all clouds are created equal. British Airways . Enterprise data breach cost reached record high during COVID-19 - ZDNET The information in this article will help you understand how SD-WAN and VPN compare, so you can decide which option fits your organization best. This article will examine seven key findings from the report and break down some of the most promising solutions that enterprises can use to reduce the costs associated with breach incidents. Remote working also hindered organizations ability to quickly respond to security incidents and data breaches. 3. The average data breach costs globally in 2022 were $4.35 million, a 2.6% rise from the 2021 amount of $4.24 million. 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. The intrusion was only detected in September 2021 and included the exposure and potential theft of . This is the highest figure in 17 years since records began and up from $3.86 million in 2020. The average cost of a ransomware attack went down slightly, from USD 4.62 million in 2021 to USD 4.54 million in 2022. Data breaches are a growing concern for businesses and consumers alike. The Actual Costs of a Data Breach in 2021 - U.S. Risk Data regarding earlier years from previous reporting.The source studied 550 organizations that had experienced breaches across 17 countries and regions and 17 different industries. A recent IBM and Ponemon Institute study looked at nearly 525 organizations in 17 countries and regions that sustained a breach last year, and found that the average cost of a data breach in 2020 stood at $3.86 million, a 1.5% decline over 2019 (when the cost stood at $3.92 million). [6]. [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. 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. [3] Plus, ransomware is on the rise. The third most significant cost was post-breach response at 27%, which accounted for $1.14 million. Cost of a data breach 2022 | IBM 3. 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%).