IBM has released its 2023 Data Breach Cost Report based on research conducted by the Ponemon Institute. This shows, among other things, that AI is having a positive impact on the breach lifecycle.
The report shows that the global average cost of a data breach will reach $4.45 million in 2023. This is the highest amount ever reported and has grown 15% over the past three years. Detection and escalation costs jumped 42% over the same period. This represents the highest portion of the cost of breach and indicates a shift towards more complex breach investigations.
According to a 2023 IBM report, businesses are divided on how to deal with the increasing cost and frequency of data breaches. The study found that while 95% of the organizations surveyed experienced multiple breaches, those who were compromised were more likely to pass the cost of the incident on to consumers (57%) rather than increase their security investments (51%).
Other key findings include:
- AI and automation had the greatest impact on the speed of breach identification and containment in the organizations studied. Organizations with extensive use of both AI and automation experienced 108 days less data breach lifecycles (214 days vs. 322 days) compared to those surveyed that did not have these technologies in place.
- Ransomware victims in investigations involving law enforcement saved an average of $470,000 in breach costs compared to not involving law enforcement. Despite these potential savings, his 37% of surveyed ransomware victims had no law enforcement involvement in their ransomware attacks.
- Only one-third of the compromises surveyed were detected by the organization’s security team, and 27 percent were disclosed by the attacker. On average, a data breach disclosed by an attacker costs nearly $1 million more than if the organization under study identified the breach themselves.
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