According to a new report by IBM, the cost of data breaches has hit an all-time high, with the global average now standing at $4.45 million. The survey, which covered more than 500 organizations worldwide, revealed a 15% increase in breach costs compared to just three years ago.
The largest portion of breach costs is attributed to detection and escalation, which has seen a significant increase of 42% in the examined timeframe. This suggests a shift towards more complex and time-consuming breach investigations.
IBM’s report highlights the crucial role of AI and automation in breach identification and containment. Businesses that utilized both AI and automation were able to address cyberattack issues 108 days faster than those without, reducing the time to resolution from 322 days to 214 days.
Chris McCurdy, General Manager of Worldwide IBM Security Services, emphasizes the importance of early detection and fast response in mitigating breach impacts. He states that security teams must concentrate their efforts on stopping adversaries before they achieve their goals. Investments in AI and automation can significantly enhance defenders’ speed and efficiency.
The report also revealed that businesses with deployed security AI and automation spent $1.8 million less in data breach costs. However, hackers are leveraging these tools as well, enabling them to expedite ransomware attacks.
Interestingly, the study contradicts a common belief that involving law enforcement during a ransomware attack complicates matters and increases costs. Researchers found that the opposite is true, as organizations that engaged law enforcement had breach lifecycles 33 days shorter and paid $470,000 less in breach costs compared to those that did not involve the police.
Surprisingly, more than a third (37%) of victim organizations chose not to engage law enforcement, and nearly half (47%) ended up paying the ransom demand. The report advises businesses to abandon misconceptions around ransomware and encourages them to involve law enforcement, as paying a ransom without involving the police may lead to higher incident costs and slower responses.
With the costs of data breaches escalating, it’s critical for businesses to prioritize cybersecurity measures and stay vigilant in patching vulnerabilities. Embracing AI and automation can prove to be valuable tools in streamlining breach responses and minimizing financial and reputational damages.
