IBM Report: Consumers Pay the Price as Data Breach Costs Reach All-Time High
60% of breached businesses raised product prices post-breach; vast majority of critical infrastructure lagging in zero trust adoption; $550,000 in extra costs for insufficiently staffed businesses
CAMBRIDGE, Mass., July 27, 2022 /PRNewswire/ -- IBM (NYSE: IBM) Security today released the annual Cost of a Data Breach Report,1 revealing costlier and higher-impact data breaches than ever before, with the global average cost of a data breach reaching an all-time high of $4.35 million for studied organizations. With breach costs increasing nearly 13% over the last two years of the report, the findings suggest these incidents may also be contributing to rising costs of goods and services. In fact, 60% of studied organizations raised their product or services prices due to the breach, when the cost of goods is already soaring worldwide amid inflation and supply chain issues.
The perpetuality of cyberattacks is also shedding light on the "haunting effect" data breaches are having on businesses, with the IBM report finding 83% of studied organizations have experienced more than one data breach in their lifetime. Another factor rising over time is the after-effects of breaches on these organizations, which linger long after they occur, as nearly 50% of breach costs are incurred more than a year after the breach.
The 2022 Cost of a Data Breach Report is based on in-depth analysis of real-world data breaches experienced by 550 organizations globally between March 2021 and March 2022. The research, which was sponsored and analyzed by IBM Security, was conducted by the Ponemon Institute.
Some of the key findings in the 2022 IBM report include:
- Critical Infrastructure Lags in Zero Trust â€“ Almost 80% of critical infrastructure organizations studied don't adopt zero trust strategies, seeing average breach costs rise to $5.4 million â€“ a $1.17 million increase compared to those that do. All while 28% of breaches amongst these organizations were ransomware or destructive attacks.
- It Doesn't Pay to Pay â€“ Ransomware victims in the study that opted to pay threat actors' ransom demands saw only $610,000 less in average breach costs compared to those that chose not to pay â€“ not including the cost of the ransom. Factoring in the high cost of ransom payments, the financial toll may rise even higher, suggesting that simply paying the ransom may not be an effective strategy.
- Security Immaturity in Clouds â€“ Forty-three percent of studied organizations are in the early stages or have not started applying security practices across their cloud environments, observing over $660,000 on average in higher breach costs than studied organizations with mature security across their cloud environments.
- Security AI and Automation Leads as Multi-Million Dollar Cost Saver â€“ Participating organizations fully deploying security AI and automation incurred $3.05 million less on average in breach costs compared to studied organizations that have not deployed the technology â€“ the biggest cost saver observed in the study.
"Businesses need to put their security defenses on the offense and beat attackers to the punch. It's time to stop the adversary from achieving their objectives and start to minimize the impact of attacks. The more businesses try to perfect their perimeter instead of investing in detection and response, the more breaches can fuel cost of living increases." said Charles Henderson, Global Head of IBM Security X-Force. "This report shows that the right strategies coupled with the right technologies can help make all the difference when businesses are attacked."
Over-trusting Critical Infrastructure Organizations
Concerns over critical infrastructure targeting appear to be increasing globally over the past year, with many governments' cybersecurity agencies urging vigilance against disruptive attacks. In fact, IBM's report reveals that ransomware and destructive attacks represented 28% of breaches amongst critical infrastructure organizations studied, highlighting how threat actors are seeking to fracture the global supply chains that rely on these organizations. This includes financial services, industrial, transportation and healthcare companies amongst others.
Despite the call for caution, and a year after the Biden Administration issued a cybersecurity executive order that centers around the importance of adopting a zero trust approach to strengthen the nation's cybersecurity, only 21% of critical infrastructure organizations studied adopt a zero trust security model, according to the report. Add to that, 17% of breaches at critical infrastructure organizations were caused due to a business partner being initially compromised, highlighting the security risks that over-trusting environments pose.
Businesses that Pay the Ransom Aren't Getting a "Bargain"
According to the 2022 IBM report, businesses that paid threat actors' ransom demands saw $610,000 less in average breach costs compared to those that chose not to pay â€“ not including the ransom amount paid. However, when accounting for the average ransom payment, which according to Sophos reached $812,000 in 2021, businesses that opt to pay the ransom could net higher total costs - all while inadvertently funding future ransomware attacks with capital that could be allocated to remediation and recovery efforts and looking at potential federal offenses.
The persistence of ransomware, despite significant global efforts to impede it, is fueled by the industrialization of cybercrime. IBM Security X-Force discovered the duration of studied enterprise ransomware attacks shows a drop of 94% over the past three years â€“ from over two months to just under four days. These exponentially shorter attack lifecycles can prompt higher impact attacks, as cybersecurity incident responders are left with very short windows of opportunity to detect and contain attacks. With "time to ransom" dropping to a matter of hours, it's essential that businesses prioritize rigorous testing of incident response (IR) playbooks ahead of time. But the report states that as many as 37% of organizations studied that have incident response plans don't test them regularly.
Hybrid Cloud Advantage
The report also showcased hybrid cloud environments as the most prevalent (45%) infrastructure amongst organizations studied. Averaging $3.8 million in breach costs, businesses that adopted a hybrid cloud model observed lower breach costs compared to businesses with a solely public or private cloud model, which experienced $5.02 million and $4.24 million on average respectively. In fact, hybrid cloud adopters studied were able to identify and contain data breaches 15 days faster on average than the global average of 277 days for participants.
The report highlights that 45% of studied breaches occurred in the cloud, emphasizing the importance of cloud security. However, a significant 43% of reporting organizations stated they are just in the early stages or have not started implementing security practices to protect their cloud environments, observing higher breach costs2. Businesses studied that did not implement security practices across their cloud environments required an average 108 more days to identify and contain a data breach than those consistently applying security practices across all their domains.
Additional findings in the 2022 IBM report include:
- Phishing Becomes Costliest Breach Cause â€“ While compromised credentials continued to reign as the most common cause of a breach (19%), phishing was the second (16%) and the costliest cause, leading to $4.91 million in average breach costs for responding organizations.
- Healthcare Breach Costs Hit Double Digits for First Time Everâ€“ For the 12th year in a row, healthcare participants saw the costliest breaches amongst industries with average breach costs in healthcare increasing by nearly $1 million to reach a record high of $10.1 million.
- Insufficient Security Staffing â€“ Sixty-two percent of studied organizations stated they are not sufficiently staffed to meet their security needs, averaging $550,000 more in breach costs than those that state they are sufficiently staffed.
- To obtain a copy of the 2022 Cost of a Data Breach Report, please visit: https://www.ibm.com/security/data-breach.
- Read more about the report's top findings in this IBM Security Intelligence blog.
- Sign up for the 2022 IBM Security Cost of a Data Breach webinar on Wednesday, August 3, 2022, at 11:00 a.m. ET here.
- Connect with the IBM Security X-Force team for a personalized review of the findings: https://ibm.biz/book-a-consult.
About IBM Security
IBM Security offers one of the most advanced and integrated portfolios of enterprise security products and services. The portfolio, supported by world-renowned IBM Security X-Force ® research, enables organizations to effectively manage risk and defend against emerging threats. IBM operates one of the world's broadest security research, development, and delivery organizations, monitors 150 billion+ security events per day in more than 130 countries, and has been granted more than 10,000 security patents worldwide. For more information, please checkâ€¯www.ibm.com/security, followâ€¯@IBMSecurityâ€¯on Twitter or visit theâ€¯IBM Security Intelligenceâ€¯blog.
IBM Security Communications
1 Cost of a Data Breach Report 2022, conducted by Ponemon Institute, sponsored, and analyzed by IBM
2 Average cost of $4.53M, compared to average cost $3.87 million at participating organizations with mature-stage cloud security practices
Photo - https://mma.prnewswire.com/media/1865847/IBM_CODB.jpg
Logo - https://mma.prnewswire.com/media/95470/ibm_logo.jpg
More News by PR Newswire India
Atlanta Site Strengthens Sims Lifecycle Services' Operational Footprint
PRA Group Leader LaTisha Tarrant Named Chief Human Resources Officer
Media Advisory - BMO Financial Group to Announce its Third Quarter 2022 Results
Vieworks Wins FDA Approval for Its latest VIVIX-S F series
GACL Financial results for the first quarter ended 30th June 2022
Strong Technical Advantages of TANK Platform, GWM TANK300 Will Bring a New Intelligent Off-road Experience
Bitget Launches $200 Million Protection Fund To Safeguard Users' Asset Security
Chandigarh University joins hands with Punjab Remote Sensing Centre for resources management and disaster mitigation
Saudi Arabia to Bid for the 2026 AFC Women's Asian Cup
FIRMENICH DELIVERS RECORD RESULTS DESPITE CHALLENGING MACRO-ECONOMIC ENVIRONMENT
A Center of Hope and New Life
CHAIRMAN OF ATLAS CORP., FAIRFAX FINANCIAL HOLDINGS LIMITED AND THE WASHINGTON FAMILY PARTNER WITH OCEAN NETWORK EXPRESS PTE. LTD. TO JOINTLY PROPOSE ACQUIRING ALL COMMON SHARES OF ATLAS CORP. NOT CONTROLLED BY ITS MAJORITY SHAREHOLDERS FOR $14.45 PER SHARE IN CASH
Hon'ble Prime Minister Modi inaugurates multispecialty charitable Shrimad Rajchandra Hospital; a revolution in rural healthcare
PARAMOUNT PICTURES' "TOP GUN: MAVERICK" FLIES PAST $50 MILLION IN SCREENX AND 4DX
Empowering Young Women and Refugees Worldwide through STEM & Sustainability
ViewSonic's Visual Solutions Ignite Love and Hope in 2022 World Women's Art Festival
Besrey Celebrates Seventh Anniversary with Giveaways and Gifts for Parents
ADVENTURERS ROSS EDGLEY AND KATIE TUNN OPEN DOORS AT NEW TALISKER VISITOR EXPERIENCE
Frost & Sullivan Institute lauds Global Companies with Prestigious Enlightened Growth Leadership Awards
Oracle Names WorkForce Software the Cloud HCM ISV Partner of the Year as Winner of the 2021 Oracle Cloud HCM HR Heroes Visionary Award
In a first of its kind, Rural Banking Outlets in India to get a distinct identity through 'RedBlue Revolution'
Titan.ium Platform, LLC Announces 5G SA Evolution of NetCore to Expand Its Private Networks Solutions
Dentsu Group Acquires a Majority Stake in Extentia to Strengthen Customer Transformation and Technology Capabilities
Agility Completes Â£763 Million Acquisition of Menzies Aviation
Elearnmarkets goes global with their 2nd edition of the Face2Face Trading Conclave in Bangkok
Global Tree presents Study Fair 2022
Innoviti joins ONDC platform to help small sellers accelerate sales through co-promotion opportunities with banks and brands
VNPT Group partners with Comviva to deliver advanced digital customer experience
SVKM'S NMIMS Shirpur campus bags NBA accreditation for School of Pharmacy & Technology Management
Crest, an Inventory Planning Tool Gets Funding from Its first 2 Customers, Sirona Hygiene and Samosa Party
Panchshil Realty To Sponsor Accomplished Mountaineer Baljeet Kaur's Next Adventure
The Adecco Group: HALF YEAR REPORT 2022
The Adecco Group: Q2 22 Results - Market share momentum, solid growth and margin
Cielo continues global expansion, opens new office in India
VCTI Achieves Dramatic Growth Fueled by U.S.'s Plans and Funding for Broadband Expansion
Sun Life Appoints Chris Wei to EVP and Chief Client and Innovation Officer
ROSHN signs agreement to sponsor and rename Jeddah Waterfront
GameChange Solar Announces 6 GW Midwest Tracker Factory, Increases USA Capacity to 14 GW
Franklin Templeton, Inc. Renews with Empire State Realty Trust for 79k Square Feet at 100 First Stamford Place
Music industry veteran Lefroy Verghese joins Audio Network
Women's World Banking Announces 2023 Fintech Innovation Challenge to Elevate Fintechs with New Solutions to Close the Gender Gap in Financial Services
KPM Analytics Introduces New Discrete Analyzer to Complete Its SmartChemÂ® Product Line
HAVAS HEALTH & YOU PARTNERS WITH REPUBLICA HAVAS TO CREATE REPUBLICA HAVAS HEALTH
Collaboration of ePayLater, the SME Credit Platform with JioMart Partner
Firmenich Appoints Maurizio Clementi ad interim President of its Taste & Beyond Division
Enfinity Global closes $242 million of long term financing for three operational solar power plants in Japan
HIGHLIGHTS FROM THE ALZHEIMER'S ASSOCIATION INTERNATIONAL CONFERENCE 2022
HISTORY OF HYPERTENSIVE DISORDERS DURING PREGNANCY LINKED TO INCREASED RISK OF DEMENTIA
HarperCollins Publishers India is proud to announce the forthcoming publication of Chitra Banerjee Divakaruni's new novel INDEPENDENCE
Waterborne Trade in Rio South Texas
A Bond Tightly Woven Together With Sneh - An Exquisite Rakhi Range From Ferns N Petals (FNP)
FMCG and Consulting companies top recruiters at SPJIMR Autumn Internship 2022
Jury unveiled for UXplorer'22; features design industry stalwarts from India and abroad
Hisense Shines in UEFA Women's EURO 2022â„¢, Achieved Champion Position in Global Market
The Israeli Ministry of Defense Selects Mona's Enterprise Monitoring Solution to Gain Complete Visibility into Their AI / ML Systems
Over 22% of small businesses that availed loans in FY 2022 were run by women: NeoGrowth Social Impact Report
FORTUNE RELEASES ANNUAL FORTUNE GLOBAL 500 LIST
Technology Solutions to Boost Employee Experience and Boost Patient Outcomes
Cendyn announces acquisition of digitalhotelier
Credgenics launches Digital Collections Technology Platform in Indonesia
MOMENTUM NAMED A BEST COMPANY TO WORK FOR WITH "OUTSTANDING" LEVELS OF WORKPLACE ENGAGEMENT
Zimyo at-service with its 'Start-up Program'
Sanjay Ghodawat conferred with the Maharashtra Leadership Award 2022
Jio Platforms partners with Subex HyperSense AI to augment its 5G product line
Globalization Partners Again Named an Industry Leader in NelsonHall's 2022 Global Employer of Record Research
Detect Technologies announces global agreement with Vedanta
CLA Nearly Triples Office Space with ESRT at One Grand Central Place
Sparrow Introduces Newly Updated Sparrow Cloud and Sparrow SCA at Black Hat USA 2022
CELEBRATING CULTURAL REVIVAL AND THE TRADITION OF PASSING ON GENERATIONAL KNOWLEDGE THROUGH A NEW ROYAL CANADIAN MINT COIN HONOURING THE RED RIVER MÃ‰TIS
LOWER SOCIOECONOMIC STATUS IN CHILDHOOD, PERSISTENT LOW WAGES LINKED TO RISK FOR DEMENTIA AND FASTER MEMORY DECLINE
Expel Applauded by Frost & Sullivan for Enabling Managed and Automated Threat Detection and Response
Context Therapeutics and The Menarini Group Announce Clinical Trial Collaboration and Supply Agreement to Evaluate ONA-XR and Elacestrant Combination
Bigtincan Unveils Analytics Experience and Delivers Enhancements to Award-Winning Sales Enablement Platform
Zift Solutions Marks Six Years of SOC 2 Compliance
Adorable has a new meaning with Little Surprise Box the pioneers of Kids Monsoon Fashion in India
Firmenich Announces Grand Opening of West Coast Pilot Plant for Food & Beverage Customers
Leica Camera engages in the Laser TV equipment segment and agrees on technological cooperation with Hisense
Metabolon Awarded ISO 9001:2015 Recertification
At Chandigarh University, multiple scholarships worth Crores of rupees help talented and meritorious students overcome the barrier of weaker economic situation
Altair Announces Winners of 10th Annual Enlighten Award
iHerb Achieves Customer Service Milestones
10,000 RMB! "My Guangdong Story" short video solicitation calls for global entries
STL launches comprehensive optical suite for India's 5G readiness
LambdaTest's intelligent test orchestration platform HyperExecute is now available on the Microsoft Azure Marketplace
Northwest Analytics Applauded by Frost & Sullivan for Preventing Institutional Knowledge Loss and Bridging Skills Gaps with NWA Analytics Knowledge Suiteâ„¢
New Research Reveals Risk Factors to Business Success in a Post-Pandemic World
Comviva receives Mastercard Cloud Based Payments Certification
EZVIZ LAUNCHES TY1 With 4MP, A SMART Wi-Fi PAN and TILT CAMERA
Novel and fast typing method developed to control monkeypox by Molecular Biology Systems (MBS) in collaboration with the Amsterdam UMC and Danish Rigshospitalet
Intersec Reports Most Successful Fiscal Year In Company History
Protean forays into cyber security business, launches Protean InfoSec Services Limited
Prudent Corporate Advisory Services Limited Profits grew by 25% YoY & Flows from SIPs Reach Highest Ever in Q1FY23
Pharming Announces New ICD-10-CM Code for APDS, a Rare Primary Immunodeficiency
SEERIST ESTABLISHES THE FIRST AUGMENTED ANALYTICS TECHNOLOGY FOR SECURITY AND THREAT INTELLIGENCE PROFESSIONALS
Quinnox named a Strong Performer in Modern Application Development Services by Independent Analyst Firm
Tech Mahindra Announces Strategic Partnership with Soroco to Establish a Large Task Mining Center of Excellence
Eventbrite Welcomes Sapna Nair as Managing Director and VP of Engineering in India
PNY launches XLR8 Gaming EPIC-X RGB(TM) DDR4 Silver 3200MHz and 3600MHz desktop memory
The Benefits of a Smart Connected Commerce for MSMEs in APAC
Allied UniversalÂ® Expands By 22,000 Square Feet with Empire State Realty Trust at 501 Seventh Avenue
Ithra's Hijrah: In the Footsteps of the Prophet exhibit revisits the birth of Islam from a modern perspective
New initiative from Turkish Airlines to combat climate change: Co2mission
EXPERIENCES OF RACISM ASSOCIATED WITH POOR MEMORY, INCREASED COGNITIVE DECLINE
INEOS STYROLUTION SELLS ITS ENTIRE EQUITY INTEREST IN INEOS STYROLUTION INDIA
IMG Announces Start of Sixth Annual 'Leave Your Mark' Essay Contest
RevBits Delivers End-to-End Email Security - Defending from the Mail Server to the Edge User's Inbox
Frost & Sullivan Recognizes Leading Organizations with Prestigious 2022 Best Practices Awards
Religare Broking Moves its Corporate Office to Andheri East
"The only sustainable way we can get to 5 trillion is if the bottom 600 billion Indians are part of the process," said Dr. D Subbarao, Former Finance Secretary and RBI Governor
Comviva and Vietnamobile announce strategic partnership to power AI-led intelligent customer engagement
Union Bank of India launches Union Prerna 2.0 - EmpowerHim
Passion Gaming Orchestrates Real-Time Data-Based Decision Making With Tableau
Shanghai Electric Announces Continued Commitment to Promoting Friendship Between China and Pakistan on International Friendship Day
Azure Power Announces Appointment of Rupesh Agarwal as Chief Strategy & Commercial Officer
Merged Solcon-IGEL GROUP Launches New Website
City of Glasgow College, UK partners with Scottish Institute of Hospitality Sciences to strengthen their presence in India
NIA highlights four key magnets to attract foreign investors, pushing Thailand as a "Global Hub" for international startups and investors
Global Automotive Plastics Market Boosted by the Need to Minimize CO2 Emissions
Vantage partners UNHCR for global fundraising activity for refugees, matches donations dollar-for-dollar.
Experion Technologies and TRL Software UK's new JV promises safer roads using technology-driven solutions iROADS and iMAAP
DigiFT Launches Decentralized Security Token Exchange
Anirban Gupta joins Colliers as Managing Director, East India to drive business growth
PLDT fires up PH link of US-Transpacific Jupiter Cable system
SVKM's NMIMS School of Pharmacy & Technology Management, Shirpur Campus bags NBA Accreditation
Zimbabwe President Emmerson Mnangagwa launched US$500 million Zim Cyber City by UAE investor Mulk Int'l opens new investment opportunities for Indians
Tejas Networks awarded Rs 298 crore optical network contract by Power Grid Corporation of India Limited (PGCIL)
Pharming Group Receives Accelerated Assessment in Europe for leniolisib for the Treatment of Rare Immunodeficiency, APDS
Active Motif and EpiCypher Execute Cross-Licensing Agreement and End Ongoing Litigation Involving Targeted Transposition/CUT&Tag Technology for Epigenomics
Active Motif Incorporated Licenses Targeted Transposition to Diagenode S.A. Technology
Resulticks Named in 2022 GartnerÂ® Magic Quadrantâ„¢ for Multichannel Marketing Hubs for the Sixth Year in a Row
Linear TV viewing down as online long form viewing time increases according to Omdia
Global Fund Reports Significant Progress in Breaking Down Human Rights-Related Barriers to HIV and TB Services
PERSISTENT LOSS OF SMELL DUE TO COVID-19 CLOSELY CONNECTED TO LONG-LASTING COGNITIVE PROBLEMS
Gibson Wins Another Definitive Ruling On Its Iconic Shapes and Trademarks
PARAMOUNT APPOINTS PAMELA KAUFMAN TO LEAD INTERNATIONAL BUSINESS AS PRESIDENT AND CEO, INTERNATIONAL MARKETS, GLOBAL CONSUMER PRODUCTS & EXPERIENCES
The fifth CIIE benefits countries along the Belt and Road
Heritage Foods announces Q1FY23 results reporting
LIMES Randomised Controlled Trial about Sirolimus Coated Balloon in BTK takes the first Stride: patient enrolment started
Chandigarh University Student invents AI-based Smart Stick 'Netra' to make visually-impaired people self-reliant
CarTrade Tech reports a 47% Y-O-Y Growth in Revenue & PAT of Rs. 3.3 crore for Q1 FY23
TransFunnel Consulting is now a HubSpot elite partner
SafeTree: Technology-led innovation is enhancing the customer's digital journey
Empowering Better World with Technology, Hisense and FIFA Create a Perfect Future through Long-term Collaborations
DRIVING TO EUROPE: FOTON iBlue EV Truck Obtained EU WVTA Certificate
LEXUS INDIA ANNOUNCES CALL FOR ENTRIES FOR LEXUS DESIGN AWARD INDIA 2023
Cashfree Payments launches GSTIN Verification to help businesses verify GSTIN of vendors and partners
Rainshine Entertainment brings home their second National Film Award, wins the 'Best Editing' award for documentary 'Borderlands' at the 68th National Film Awards
Icertis Names Rajat Bahri as Chief Financial Officer
IPICOL & FICCI sign MoU for the upcoming Make in Odisha Conclave 2022