Technology

Cost of corporate data breaches hits record high

The average cost of a data breach has now passed the fateful $ 4 million mark, reaching an all-time high during the health crisis. In a report released by IBM on Wednesday, Big Blue estimates that in 2021, a typical data breach suffered by businesses now costs $ 4.24 million per incident, with expenses incurred now 10% higher than in 2020.

Large-scale breaches, which affect leading companies and expose between 50 and 65 million records, also come at a higher cost, averaging $ 401 million to resolve, the US giant reveals.

After analyzing data breaches reported by more than 500 organizations, as well as an investigation by the Ponemon Institute, IBM says the “radical operational changes” suffered by the company due to the pandemic, home orders and the need to quickly set up remote processes has resulted in higher costs and greater difficulty in containing a security incident once it has occurred.

The cost of teleworking?

IBM estimates that about 60% of companies have turned to the “cloud” to continue their operations, even though the strengthening of security controls did not necessarily follow. When the use of telecommuting exploded, so did data breaches, which swelled to an additional $ 1 million – with the highest rates being $ 4.96 million from $ 3 million. $ 89 million.

The most common attack vector for businesses experiencing a data breach is the compromise of credentials, whether they are taken from data dumps that are uploaded, sold, or obtained through brute force attacks. After the network was infiltrated, customers’ Personally Identifiable Information (PII), including names and email addresses, was stolen in almost half of the cases.

In 2021, it took an average of 287 days to detect and contain a data breach, 7 days more than the previous year. In total, on average, an organization will not detect the intrusion for 212 days, and then it will not be able to fully resolve the issue until an additional 75 days have passed.

The health sector in the sights

Data breaches in healthcare were the costliest, averaging $ 9.23 million, followed by financial services – $ 5.72 million – and pharmaceuticals, at $ 5.04 million of dollars.

However, according to IBM, companies that use security solutions based on artificial intelligence (AI) algorithms, machine learning, analytics and encryption have all mitigated the potential cost of a breach, allowing businesses save, on average, between $ 0.125 million and $ 1.49 million.

“Rising data breach costs are another added expense for businesses as a result of rapid technological changes during the pandemic,” said Chris McCurdy, vice president of IBM Security. “While the costs of data breaches have reached an all-time high over the past year, the report also showed positive signs about the impact of modern security tactics, such as AI, automation and adopting a Zero Trust approach – which could pay off by reducing the cost of these incidents down the road. “

Source: .com

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