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Data breach recovery cost up 13% globally since 2020, IBM study says

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IBM data breach study overview:

  • Quien: IBM revealed in a new study that the cost to recover from a data breach has risen by 13% in the last two years.
  • Why: IBM conducted the study amid an increase of data breaches.
  • Where: Data breaches affect companies around the world.

Data breaches have become increasingly expensive and irritating to organizations all over the world, according to a new IBM study.

The average cost to clean up the month of a data breach has reached an all-time high of $4.35 million, an increase of 13% from two years ago, according to the IBM study, TechRadar reports.

“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,” Charles Henderson, global head of IBM Security X-Force, says in a statement.

IBM included 550 organizations worldwide in the study, which determined that individuals beyond the affected businesses are affected by data breaches as well, if only passively.

An increasing cost in a number of consumer goods and services could also potentially be traced back to the influence of data breaches, according to IBM, which revealed that almost two-thirds of respondents claimed to have raised their prices following a data breach.

The more businesses try to perfect their perimeter instead of investing in detection and response, the more breaches can fuel cost of living increases,” Henderson says.

Companies that fall victim to a data breach are also more likely to have another issue in the future with IBM finding that more than four in five businesses have experienced more than one data breach, TechRadar reports.

Data breaches create long-term difficulties for affected companies

Data breaches can also present long-term difficulties for companies with IBM finding that nearly half of the costs incurred during the recovery of a data breach come more than a year after the incident.

IBM also determined that choosing to pay a ransom does not really limit the costs incurred by a business which has fallen victim to a data breach, TechRadar reports.

Ultimately, IBM suggests organizations adopt the practice of “Zero Trust” to protect themselves; however, around 80% of organizations said they have not yet done so.

Zero Trust is a security framework that requires a business to authenticate, authorize and continually validate anyone using its network, regardless of whether they are in or outside of the organization.

IBM says organizations that have bolstered their security with Zero Trust pay an average of $1.17 million less to recover from a data breach, TechRadar reports.

This report shows that the right strategies coupled with the right technologies can help make all the difference when businesses are attacked,” Henderson says.

Global digital identity company ForgeRock also released a report on data breaches this month that revealed that the United States is the most expensive place to recover from a data breach with costs reaching an average of $9.5 million.

Consumers have filed a number of class action lawsuits recently against companies such as Marriott International and Mangatoon, among others, over how they handled their data breaches.

Have you been affected by a data breach? Let us know in the comments!

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