data breaches

International Business Machines Corporation (IBM) has released the results of a new study conducted to understand the financial impact of data breaches on organisations.

According to the study:

  1. The cost of a data breach has risen by 12% over the past 5 years
  2. Average data breach cost per annum is now $3.92 million
  3. Companies with less than 500 employees suffer losses of more than $2.5 million on average – a potentially crippling amount for businesses earning $50 million or less in annual revenue
  4. In South Africa, R43.3 million is the average cost of data breach (21 SA companies were surveyed), 52% of breaches result from malicious or criminal attacks
  5. 67% of data breach costs are realised within the first year after a breach, 22% accrued in the second year and another 11% accumulated more than two years after a breach globally
  6. The average lifecycle of a breach is 279 days with companies taking 206 days to first identify a breach after it occurs and an additional 73 days to contain the breach
  7. US data breaches cost has doubled to $8.19 million
  8. Breach response remains the biggest cost saver
  9. Practice makes perfect
  10. Data breaches cost companies around $150 per record that was lost or stolen
  11. Middle East has the highest average number of breached records

Wendi Whitmore, Global Lead for IBM X-Force Incident Response and Intelligence Services, said: “Cybercrime represents big money for cybercriminals, and unfortunately that equates to significant losses for businesses.

“With organisations facing the loss or theft of over 11.7 billion records in the past 3 years alone, companies need to be aware of the full financial impact that a data breach can have on their bottom line – and focus on how they can reduce these costs.”

The report is based on in-depth interviews with more than 500 companies around the world that suffered a breach over the past year.

Click here to view the full report.

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Nicholas Nhede
Nicholas Nhede is an experienced energy sector writer based in Clarion Event's Cape Town office. He has been writing for Smart Energy International’s print and online media platforms since 2015, on topics including metering, smart grids, renewable energy, the Internet of Things, distributed energy resources and smart cities. Originally from Zimbabwe, Nicholas holds a diploma in Journalism and Communication Studies. Nicholas has a passion for how technology can be used to accelerate the energy transition and combat climate change.