A report by IBM states that 60 per cent of breached businesses raised product prices post-breach. Consumers are paying the price as data breach costs reach all-time high.
The cost of data breach report by IBM revealed that there have been 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 surveyed organizations.
Data breach costs
With breach costs increasing nearly 13 per cent 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 India, the cost of data breach averaged at ₹176 million in 2022, reaching an all-time high. This represents a 6.6 per cent increase from last year, when the average cost of a breach was ₹165 million. The average cost has climbed 25 per cent from ₹140 million in the 2020 report.
Viswanath Ramaswamy, Vice President, Technology, IBM Technology Sales, IBM India and South Asia said, “It’s clear, businesses cannot evade cyberattacks. Keeping security capabilities flexible enough to match attacker agility will be the biggest challenge as the industry moves forward.”
To stay on top of growing cybersecurity challenges investment in zero-trust deployments, mature security practices, and AI-based platforms can help make all the difference when businesses are attacked, he added.
‘Haunting effect’
The perpetuality of cyberattacks is also shedding light on the “haunting effect” data breaches are having on businesses, with the report finding 83 per cent 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 per cent of breach costs are incurred more than a year after the breach, the report said.
Published on
July 27, 2022
