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Ponemon cost of a data breach 20201/18/2024 ![]() Five Largest Data Breaches in 2020 Exposed 406.6 Million Records Statistics also show that around 20% of companies that had been victims of a malicious breach were hacked by using stolen or compromised credentials. Human error and system glitches follow with 23% and 25% share, respectively. Malicious attacks caused 52% of all breaches. Germany leads among European countries with an average data breach cost of $4.45 million in 2020, a 7% drop year-on-year, while companies usually need 160 days to identify a data breach. Financial services represent the costliest industry in the United States in 2020, while companies and organizations need 237 days to identify a breach, compared to 245 days in 2019. Statistics also show this figure surged by 60% in the last seven years, growing from $5.4 million in 2013. The energy industry ranked second of the 17 sectors surveyed, with $6.39 million in average cost and 254 days to spot a breach.įinancial services, pharma industry, and technology sector follow, with $5.85 million, $5.06 million, and $5.04 million in average data breach cost, respectively.Īnalyzed by geography, the United States convincingly leads among all surveyed countries with an average data breach cost of $8.64 million, a 5.5% increase in a year. However, statistics indicate these figures vary significantly based on industry.īesides leading in the average cost of a data breach, the healthcare industry also had the highest average time to identify a violation of 329 days. The report also showed it usually took 280 days for an organization to spot and contain a breach, a day more than a year ago. ![]() In 2020, it hit $3.86 million, a 1.5% drop year-on-year, revealed the Ponemon Institute’s Cost of a Data Breach Report 2020 commissioned by IBM. The global average cost of a data breach has fluctuated between $3.5 million and $4 million in recent years. “While data breach costs reached a record high over the past year, the report also showed positive signs about the impact of modern security tactics, such as AI, automation and the adoption of a zero trust approach – which may pay off in reducing the cost of these incidents further down the line.Related: Study: On Average, Data Breaches Cost $3.86M Each Global Average Data Breach Cost Hit $3.86 Million in 2020, 1.5% Drop Year-on-Year ![]() “ 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. The report states Ransomware attacks cost an average of $4.62 million, more expensive than the average data breach ($4.24 million). Ransomware and destructive attacks were costlier than other types of breaches. ![]() Healthcare organizations incurred the highest costs, $9.23 million on average per data breach, up from $7.13 million. Most of the financial losses are caused by the loss of business which accounted for 38% of the total (roughly $1.6 million). Costs were significantly lower for some of organizations with a more mature security posture, and higher for organizations that lagged in areas such as security AI and automation, zero trust and cloud security.” reads the study. “Data breach costs rose from $3.86 million to $4.24 million, the highest average total cost in the history of this report. The report also shows that organizations that have a more mature security posture faced significantly lower costs. ![]() The average cost of a data breach passed from $3.86 million to $4.24 million in the last 12 months. The “Cost of a Data Breach” report analyzes multiple factors to determine the cost of security breaches, including legal, technical activities, legal disputes, impact on the brand, and employee productivity. The average number of days spent by organizations to identify and contain an incident was 287, an increase of seven days compared to the previous year. Based on in-depth analysis of real-world data breaches experienced by over 500 organizations, the study suggests that security incidents became more costly and harder to contain due to drastic operational shifts during the pandemic, with costs rising 10% compared to the prior year.” states IBM Security. “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. The organizations suffered major costs (+10% compared to the previous year) and it was, even more, harder to contain such kinds of incidents. ![]()
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