Data leakage is becoming an increasingly costly problem for businesses, with the average total cost of a breach rising by 10% annually, now reaching almost $4.9 million. This number is even higher in cases involving malicious insider attacks, where costs exceed $5 million.
The Cost of a Data Breach Report 2024, published by a tech giant, analyzed 604 organizations affected by data leakage between March 2023 and February 2024, spanning 17 industries and 16 countries. Researchers interviewed 3,556 security and senior business leaders, all with firsthand knowledge of data leakage incidents in their organizations.
Increased costs due to data leakage
The rising costs of data leakage are largely due to lost business, including operational downtime and loss of customers. Additionally, response costs, such as hiring staff for customer support services and paying higher regulatory fines, have surged.
Hidden Data: A Significant Risk for Breaches
One of the most serious issues contributing to data breaches is the presence of “hidden data.” This is information that is difficult for organizations to track and protect, which exacerbates vulnerability. According to the report, 35% of breaches last year involved hidden data, leading to a 16% increase in breach costs.
System complexity and skills shortages: key factors
In addition to hidden data, factors such as system complexity and a shortage of skilled security personnel contribute to the rising costs of data breaches. More than half of affected organizations experienced significant staffing shortages, resulting in a $1.8 million increase in costs.
Sectors most affected by breaches
While in healthcare the average costs per data breach decreased, from $10.9 million to $9.8 million, in sectors such as finance costs increased. In finance, average costs per breach increased from $5.9 million to $6.1 million.
Impact of late detection on breach costs
Data breaches that take the longest to detect and contain are the most costly. Breaches with a lifecycle greater than 200 days have an average cost of $5.5 million, reinforcing the need for improved threat detection and response to reduce the economic impact.