While businesses are increasing their cybersecurity investment, the cost and seriousness of breaches continue to climb. IBM’s latest data breach study sheds light on why there is a widening disparity between company cybersecurity investment and data breach cost.
2022 is on track to set a new worldwide record for business breaches, with the average data breach cost hitting $4.35 million. This is 12.7 percent more than the 2020 average, which stood at $3.86 million.
IBM also discovered that 83 percent of businesses reported more than one breach and that the average time to detect a breach is 277 days.
The popularity of privileged access credentials
As a result, businesses must examine their cybersecurity technology stacks to determine where the gaps are and how they can be filled. Improved security for authorized access credentials and identity management is a great start.
More businesses must designate IDs as the new security perimeter. According to IBM’s research, 19 percent of all compromises begin with exposed privileged credentials. Breach durations caused by compromised accounts averaged 327 days.
Privileged access credentials are also extremely popular on the Dark Web, particularly access to financial industry IT infrastructure.
The impact on healthcare
The analysis quantifies the rising cybersecurity gap in healthcare. According to IBM’s research, the average cost of a healthcare security breach is now $10.1 million, a new high and about $1 million higher than last year’s $9.2 million. Healthcare has had the highest average breach cost for the past twelve years.
According to the data, the growing cost of breaches adds inflationary fuel to the flames, as runaway prices financially squeeze worldwide consumers and businesses.
60 percent of firms in IBM’s research claim they boosted their product and service pricing due to the breach, while supply chain delays, the crisis in Ukraine, and lacklustre product demand persist. Consumers are already battling rising healthcare prices, which are expected to grow by 6.5 percent by 2023.