cxo voice
  • Home
  • News
  • Expert Opinion
  • Leaders Talk
  • Cyber Security
No Result
View All Result
  • Home
  • News
  • Expert Opinion
  • Leaders Talk
  • Cyber Security
No Result
View All Result
Interviews, IT and Technology News India | CXO VOICE
No Result
View All Result
Home News

Hidden Costs of Data Breaches Increase Expenses for Businesses: IBM Study

Average total cost of a breach estimated at ₹119 million in India, a 7.9% increase from last year Study for First Time Calculates the Full Cost of “Mega Breaches,” as High as $350 Million globally

Deepa Sharma by Deepa Sharma
August 14, 2018
Reading Time: 4 mins read
ibm
Share on FacebookShare on TwitterShare on Linkedin

IBM Security today announced the results of a global study examining the full financial impact of a data breach on a company’s bottom line. Sponsored by IBM Security and conducted by Ponemon Institute, the study found that the average cost of a data breach in India is estimated at ₹ 119 million, a 7.9% increase from the 2017 report. Based on in-depth interviews with nearly 500 companies globally that experienced a data breach, the study analyzes hundreds of cost factors surrounding a breach, from technical investigations and recovery, to notifications, legal and regulatory activities, and cost of lost business and reputation. “The threat scenario shows a significant rise in both number and sophistication of breaches in this year’s report, which is alarming as it continues to rise in India” said Vikas Arora, Chief Transformation Officer, IBM India/South Asia. “Companies in India need to fortify their security strategy to leverage a secure Cloud environment and build a strong AI strategy. They need to identify the many hidden expenses which must be considered, such as reputational damage, customer turnover, and operational costs. Knowing where the costs lie, and how to reduce them, can help companies invest their resources more strategically and lower the huge financial risks at stake.”

India findings

·  An estimated per capita cost per lost or stolen record reported was ₹ 4,552, a 7.8% increase from the 2017 report

·  Malicious or criminal attacks were the root cause for 42% of data breaches

·  The mean time to identify the data breach increased from 170 to 188 days

·  The mean time to contain the data breach increased from 72 to 78 days

Overall, the study found that hidden costs in data breaches – such as lost business, negative impact on reputation and employee time spent on recovery – are difficult and expensive to manage. For example, the study found that one-third of the cost of “mega breaches” (over 1 million lost records) were derived from lost business.

This year for the first time, the study also calculated the costs associated “mega breaches” ranging from 1 million to 50 million records lost, projecting that these breaches cost companies between $40 million and $350 million respectively.

Hidden Figures – Calculating the Cost of a Mega Breach

In the past five years, the amount of mega breaches (breaches of more than 1 million records) has nearly doubled – from just nine mega breaches in 2013, to 16 mega breaches in 2017.1 Due to the small amount of mega breaches in the past, the Cost of a Data Breach study historically analyzed data breaches of around 2,500 to 100,000 lost records.

Based on analysis of 11 companies experiencing a mega breach over the past two years, this year’s report uses statistical modelling to project the cost of breaches ranging from 1 million to 50 million compromised records. Key findings include:

· Average cost of a data breach of 1 million compromised records is nearly $40 million dollars

· At 50 million records, estimated total cost of a breach is $350 million dollars

· The vast majority of these breaches (10 out of 11) stemmed from malicious and criminal attacks (as opposed to system glitches or human error).

· The average time to detect and contain a mega breach was 365 days – almost 100 days longer than a smaller scale breach (266 days)

For mega breaches, the biggest expense category was costs associated with lost business, which was estimated at nearly $118 million for breaches of 50 million records – almost a third of the total cost of a breach this size. IBM analyzed the publicly reported costs of several high profile mega breaches, and found the reported numbers are often less than the average cost found in the study.2 This is likely due to publicly reported cost often being limited to direct costs, such as technology and services to recover from the breach, legal and regulatory fees, and reparations to customers.

What Impacts the Average Cost of a Data Breach?

For the past 13 years, the Ponemon Institute has examined the cost associated with data breaches of less than 100,000 records, finding that the costs have steadily risen over the course of the study. The average cost of a data breach was $3.86 million in the 2018 study, compared to $3.50 million in 2014 – representing nearly 10 percent net increase over the past 5 years of the study.

This year for the first time, the report examined the effect of security automation tools which use artificial intelligence, machine learning, analytics and orchestration to augment or replace human intervention in the identification and containment of a breach. The analysis found that organizations that had extensively deployed automated security technologies saved over $1.5 million on the total cost of a breach ($2.88 million, compared to $4.43 million for those who had not deployed security automation.)

Regional and Industry Differences

The study also compared the cost of data breaches in different industries and regions, finding that data breaches are the costliest in the U.S. and the Middle East, and least costly in Brazil and India.

· U.S. companies experienced the highest average cost of a breach at $7.91 million, followed by the Middle East at $5.31 million.

· Lowest total cost of a breach was $1.24 million in Brazil, followed by $1.77 million in India.

“The goal of our research is to demonstrate the value of good data protection practices, and the factors that make a tangible difference in what a company pays to resolve a data breach” said Dr. Larry Ponemon, chairman and founder of Ponemon Institute. “While data breach costs have been rising steadily over the history of the study, we see positive signs of cost savings through the use of newer technologies as well as proper planning for incident response, which can significantly reduce these costs.”

Tags: BusinessIBMVikas Arora
Deepa Sharma

Deepa Sharma

Senior Writer and Editor at CXO VOICE, She covers technology, cybersecurity, and financial and other tech news and updates. She can be reached at "deepa@cxovoice.com"

Related Posts

Richest Persons in India 2022
Leadership

Top 10 Richest Persons In India

May 17, 2022
Business Process Management (BPM)
BPM

Business Process Management (BPM), Why do businesses need BPM?

January 5, 2022
Business productivity
Business

How Technology Can Help Leaders Boost Business Productivity During Pandemic Outbreak

November 27, 2020
End to end business solutions
Productivity

How to Increase Business Efficiency with an End to End Solution

September 10, 2020
Wipro to launch 5G edge services solutions suite
News

Wipro to launch 5G edge services solutions suite

November 23, 2021
IBM security cloud
Cyber Security

Security in the Cloud Remains Challenged by Complexity and Shadow IT: IBM

June 11, 2020
Post Lockdown business to do Seven Things To Keep Doing To Run The Race
Business

Post Lockdown: Seven Things That Every Business Has To Keep Doing To Run The Race

June 8, 2020
Business

IT Spending Indicators May Be Bottoming Out for Now but US Business Confidence Continues to Plunge: IDC COVID-19 Tech Index

May 22, 2020
Load More
Next Post
DBS Property Marketplace

DBS Launches Property Marketplace follows the bank’s successes in car and electricity marketplaces

ADVERTISEMENT

Expert Views

Jaganathan Chelliah
Technology

Installing CCTV Cameras? Here is What You Need to Know

May 17, 2022
Wipro's Digital Database Services (DDS)
Banking

Cloud trends in the BFSI sector set to drive digital transformation in the new financial year

April 26, 2022
Cloud Data Protection
Cyber Security

Data Protection, a Key Part of Business Continuity

April 18, 2022
AI Cloud Enterprises
AI

What can AI Cloud do for Enterprises?

March 9, 2022
Data Modernisation
Technology

4 Key Trends Driving Data Modernization Across The Enterprises

January 28, 2022

Get Latest Update

Subscribe to our mailing list to receives newsletter direct to your inbox!

ADVERTISEMENT

Leaders Inerviews

Enterprises, and MSMEs IoT
Leaders Talk

IoT is now seen as an essential enabler for the enterprises to be future ready : Joyjeet Bose

-
Security While Working Remotely interview with Filip Coftas
Cyber Security

Security While Working Remotely [Interview]

-
Akita Security Device Help you Protect your Security During COVID-19 [Interview with Zakir Hussain]
COVID-19

Can Akita Security Device Help you Protect your Security During COVID-19 [Interview]

-
digital transformation and customer experience Newgen software
Interview

Digital Transformation Journey helps Newgen Software Improve Customer Experience [Interview]

-

Entrepreneur

Top 10 Richest Persons In India

Inspiring Women Entrepreneurs in India (2022)

Technology Adoption For Entrepreneurs

Volunteering management is the need of the Hour

CXO VOICE is a premier resource for the enterprises, SMBs and Startups CXOs and business leaders, It enables CXOs and business executives gain access key insights, experts views, analysis, business strategy, and leaders interviews on what’s happening in the market and its impact.

Connect with us

Easy Links

  • Cryptocurrency
  • Event
  • Blockchain
  • Press Release
  • Resources & Downloads

Write Us

contact@cxovoice.com

Newsletter

Subscribe to our mailing list to receives newsletter direct to your inbox!

  • Home
  • About
  • Contact Us
  • Advertise
  • Privacy & Policy
  • Feedback

© 2022 CXO VOICE

No Result
View All Result
  • Home
  • News
  • Expert Opinion
  • Leaders Talk
  • Cyber Security

© 2022 CXO VOICE