For businesses of all sizes, a data breach is not a matter of if, but when. The evolving threat landscape means that organizations must be prepared to detect, respond to, and recover from threats as quickly as possible. In the 2022 Cost of a Data Breach report, researchers share the latest insights into the cost and causes of data breaches and offer recommendations for limiting losses and saving time.
A Million-Dollar Race to Detect and Respond
Detecting and responding to data breaches quickly can save businesses millions of dollars. In fact, organizations using AI and automation had a 74-day shorter breach lifecycle and saved an average of USD 3 million more than those without. The report reveals that it took an average of 277 days to identify and contain a breach in 2022, emphasizing that time is money when it comes to data breaches.
US Businesses Face the Highest Costs
For the 12th year in a row, the United States has the highest cost of a data breach, with an average total cost of USD 9.44 million. This is over twice the global average of USD 4.35 million. Healthcare is the industry hit hardest, with the average total cost of a breach reaching USD 10.10 million.
Stolen or Compromised Credentials are the Costliest Attack Vector
Stolen or compromised credentials were the most common cause of a data breach in 2022, and also took the longest time to identify. The attack vector ended up costing USD 150,000 more than the average cost of a data breach.
Ransomware and Destructive Attacks are on the Rise
The share of breaches caused by ransomware grew 41% in the last year and took 49 days longer than average to identify and contain. Additionally, destructive attacks increased in cost by over USD 430,000.
AI and Automation Offer the Biggest Savings
Organizations that had a fully deployed AI and automation program were able to identify and contain a breach 28 days faster than those that didn’t, saving USD 3.05 million in costs. Even partially deployed AI and automation programs were better than none.
Cloud Breaches are on the Rise
Almost half of all data breaches occur in the cloud. However, organizations with a hybrid cloud model had lower average data breach costs compared to those with a public or private cloud model.
Test Your Incident Response Plan
Having an incident response plan is essential, but testing that plan regularly can help identify weaknesses in your cybersecurity and save millions in data breach costs. Organizations with an IR team that tested their plan saved an average of USD 2.66 million compared to those who didn’t.
The Bottom Line
With the average cost of a data breach continuing to rise, businesses must take action to protect themselves from these costly events. By understanding the causes and costs of data breaches and implementing the latest technologies and best practices, businesses can limit their losses and save time.