Mega data breaches cost megabucks, says IBM

Automation and implementing protocols to deal with breaches are the biggest moneysaver

Data breach

IBM and the Ponemon Institute have revealed that the average cost of a data breach globally is $3.86 million, which is an increase of 6.4% year-on-year.

The reason for such a steep climb is that it is taking longer for businesses to address and fix the data breach, meaning they're without revenue for longer and also, more data records were lost last year compared to previous years the same study took place.

IBM and The Ponemon Institute questioned nearly 500 companies that have experienced a data breach and discovered that it was taking an average of 197 days to identify a breach and an additional 69 days to contain the breach after it had occurred.

The study also revealed that it costs an average of $148 per lost or stolen record on average, but having an incident response team saved companies $14 per compromised record, while the use of AI reduced the cost by $8 and a "rush to notify" policy reduced the per-record cost by $5.

"While highly publicized data breaches often report losses in the millions, these numbers are highly variable and often focused on a few specific costs which are easily quantified," said Wendi Whitmore, Global Lead for IBM X-Force Incident Response and Intelligence Services (IRIS).

"The truth is there are many hidden expenses which must be taken into account, such as reputational damage, customer turnover, and operational costs. Knowing where the costs lie, and how to reduce them, can help companies invest their resources more strategically and lower the huge financial risks at stake."

Dr Larry Ponemon, chairman and founder of Ponemon Institute explained that although the cost of data breaches has risen significantly over the last few years, the uptake of security automation tools was having a positive impact, saving more than $1.5 million on the total cost of a breach.

"While data breach costs have been rising steadily over the history of the study, we see positive signs of cost savings through the use of newer technologies as well as proper planning for incident response, which can significantly reduce these costs." 

Featured Resources

Managing security risk and compliance in a challenging landscape

How key technology partners grow with your organisation

Download now

Evaluate your order-to-cash process

15 recommended metrics to benchmark your O2C operations

Download now

AI 360: Hold, fold, or double down?

How AI can benefit your business

Download now

Getting started with Azure Red Hat OpenShift

A developer’s guide to improving application building and deployment capabilities

Download now

Recommended

Best ransomware removal tools
ransomware

Best ransomware removal tools

22 Jan 2021
Hackers publish over 4,000 files stolen from SEPA in ransomware attack
Security

Hackers publish over 4,000 files stolen from SEPA in ransomware attack

22 Jan 2021
Weekly threat roundup: SAP, Windows 10, Chrome
vulnerability

Weekly threat roundup: SAP, Windows 10, Chrome

21 Jan 2021
Biden nominees highlight tough cyber security challenges
cyber security

Biden nominees highlight tough cyber security challenges

20 Jan 2021

Most Popular

How to move Windows 10 from your old hard drive to SSD
operating systems

How to move Windows 10 from your old hard drive to SSD

21 Jan 2021
What is the Raspberry Pi Pico?
Hardware

What is the Raspberry Pi Pico?

21 Jan 2021
How to recover deleted emails in Gmail
email delivery

How to recover deleted emails in Gmail

6 Jan 2021