The average cost of a data breach

Do you know how much it costs to experience a data breach? Everything you need to know about it is in this post. 

The Average Cost of A Data Breach

Significant technological advances come with many strings attached; this includes protecting your data. Many hackers turn to cybercrime to make a profit using data.

Data breaches are one-way hackers do this. This is when data is stolen or taken from a system without the owner's knowledge. This can mean a loss of millions of dollars. The average cost of data breaches in 2022 alone is $4.35 million.

Through these, data breaches are something you don't want to happen to your organization or company. It can also compromise company activity, expenses, and many more.

So, how much does an average data breach cost? This article will tell you all you need to know.

Editor's Choice

Here are essential facts to know about the average cost of a data breach: 

• In 2022, the healthcare industry paid an average of $10.10 million for a data breach. 
• The financial sector ranked second, averaging $5.97 million per breach. 
• The overall cost of attacks on the education sector is around $3.56 billion. 
• In 2022, the average rate of a data breach in the U.S. was $9.44 million. 
• India's average data breach cost is $2.2 million for the fiscal year of 2022.
• Russian companies and citizens spent up to $49 billion due to cyberattacks in 2020. 
• The Health Service Executive of Ireland shelled out around $650 million because of a major ransomware attack. 
• Norwegian state-owned investment fund "Norfund" spent $10 million in the 2020 BEC scam. 

How Much Does a Data Breach Cost Companies on Average?

The global average rate of a data breach increased from $4.24 million in 2021 to $4.35 million in 2022. Ponemon Institute and IBM studied 550 organizations affected by data breaches in March 2021-2022. The organizations experienced breaches across 17 countries and regions and in 17 varying industries. 

The high costs of data breaches rely on two main factors: the absence and underrepresentation of security automation and incident response protocols within organizations. 

We will share all the essential facts you should learn about the cost of a breach: 

Average Data Breach Cost Per Industry

In this data-driven world, more cybercriminals are finding ways to exploit organizations to make a quick buck. Stealing data is one of the most lucrative activities for cyber attackers nowadays. Data breaches can happen because of weak passwords, malicious insiders, ransomware attacks, and stolen devices. 

Who are the targets for these data breaches? Let's find out these facts: 

1. On average, the healthcare industry paid $10.10 million for data breaches in 2022.

(UpGuard)

30% of all massive data breaches happen in the healthcare sector. Since 2018, 50% of healthcare institutions have reported a significant increase in data breaches. In the first few months of 2022, this sector experienced 337 attacks, which affected 19,992,810 lives. 

2. The financial industry ranked second, averaging $5.97 million per breach. 

(Statista)

Since cybercriminals need maximum impact and profit, they also attack financial institutions because they store valuable and vital data. Most of these organizations are also shifting to digital apps and programs, which makes them vulnerable to cyber attackers. 

3. The average data breach cost for small businesses is $108,000. 

(ProWriters)

Since the rise of cybercrime and hackers, small businesses have been unlikely targets for cyber attacks. However, they've recently become frequent targets because criminals think they are less prepared. 

In 2021, 57% of small businesses believed cybercriminals wouldn't target them, but around 20% experienced a breach in the past year.

4. Critical infrastructure organizations became targets for data breaches in the United States. 

(CNet)

Cybercrime groups have been targeting the critical infrastructure industry in recent years. Ransomware attacks occurred against two major U.S. companies: Colonial Pipeline and JBS. 

This disruption caused panic buying among consumers as prices of meat and gasoline spiked. It also shut down both companies for days, even after paying millions as ransom. Specifically, Colonial Pipeline paid $4.4 million, and JBS shelled out $11 million. 

5. The overall cost of attacks on the education sector is around $3.56 billion. 

(Comparitech)

Almost 13% of breaches are linked to the education sector. These attacks impacted many students, educators, and parents through canceled learning sessions and inaccessible educational platforms. 

52% of the data breaches in this sector were ransomware attacks. Personal records were the main target of the attackers, exposing over 40 billion records worldwide. 

Average Data Breach Cost Per Country

Cyberattackers leave no stone unturned as they search through a country's data systems - holding every piece of information at ransom. Even smaller nations are in danger as attackers sometimes perceive them as weak and unprepared.

Which countries spend the most on data breaches? These facts will tell you more about it:

6. In 2022, the average rate of a data breach in the U.S. was $9.44 million. 

(Statista)

For 83% of companies, it's not a matter of whether a breach will occur. A data breach's actual cost should alarm large organizations, as the initial financial loss is only the start. Data breaches will harm an institution's reputation and decrease future and current consumers.

7. India's average data breach cost is $2.2 million for the fiscal year of 2022.

(IBM)

India's top attacks are stolen or compromised credentials, phishing, and accidental device and data loss. 50% of every 10 compromised accounts are grabbed together with their passwords. 

Since 2004, 18% of every 100 Indians have suffered from personal information theft from cybercrime. The targeted data types are names, passwords, and phone numbers.

8. Russian companies and citizens spent up to $49 billion due to cyberattacks in 2020. 

(Reuters)

Russia urged its citizens to limit cash use and switch to bank cards. With this, the number of crimes associated with bank cards has risen to 500% in 2020. 

Deputy chairman Stanislav Kuznetsov expressed that Russian private sectors are the most vulnerable. Client's financial information and tender documents are the most targeted, with 2.3 million darknet accounts offering stolen data. 

9. The Health Service Executive of Ireland shelled out around $650 million because of a major ransomware attack. 

(UpGuard)

This attack impacted 520 patients and staff, compromised confidential corporate data, and forced a shutdown of local and national HSE networks - making it the most significant security breach against an Irish state agency organization. 

The National Cyber Security Centre claimed that the "Wizard Spider" hacker group used Cobalt Strike, a penetration testing tool, to infect the HSE's databases.  

10. LockBit attacked Kingfisher Insurance in 2022 and demanded $300,000 to return their data. 

(Insurance Age)

LockBit, one of the most notorious groups in ransomware attacks, infiltrated the Kingfisher Insurance databases in 2022, claiming that they had stolen 1.4TB of the company's data. This includes the employees' and customers' personal information. 

Kingfisher acknowledged this attack but said the cyber attackers couldn't have grabbed as much data as they claimed. Once their IT team discovered they were being attacked, they quickly blocked all external access to ensure less damage would occur. The investigation concluded that the attack did not impact the company's operations. 

11. Norwegian state-owned investment fund "Norfund" spent $10 million in the 2020 BEC scam. 

(UpGuard)

The hackers breached the company's email systems and started intercepting messages. They spent months learning how the investment fund operates by gathering valuable data and monitoring their correspondences. 

The criminals impersonated staff and faked communications to access payment details between the investment fund and a borrowing organization. They also intercepted a $10 million loan for a Cambodian microfinance group and sent the money to a Mexican bank account with the same name as the Cambodian group. 

Final Thoughts

The average rate of a data breach is $4.35 million. If you're heading an organization, you obviously wouldn't want to spend less cash for something futile.  

Fortunately, you can better equip yourselves to be a more secure and safe organization in terms of cybersecurity. 

Ensure you're updated on the latest cybersecurity technology, and invest in a tech company that can help keep you safe from hackers.