A data breach creates all sorts of havoc, including significant financial costs. That’s hardly new information. But what those costs actually total does make news, as captured in the 2020 “Cost of a Data Breach” report, compiled by the Ponemon Institute and IBM Security.
The information from 2020 (the most current results available) provides a detailed glimpse the financial impacts security incidents can have on organizations, with historical data revealing trends in data breach causes and consequences. The report shows some consistencies with past research.
Here are the major highlights:
- The average cost of a breach in 2020 was $3.86 million per breach. This is actually good news, in a way, representing a 1.5 percent reduction from the 2019 cost per breach of $3.92 million.
- The average time to identify and contain a breach in 2020 was 280 days, virtually identical with the 279 days it took on average in 2019.
- Regarding prevention against breaches, 59 percent of organizations now have security automation deployed, up from 52 percent in 2019.
If one takeaway leaps out from these high-level results, it is that time is money. While a higher percentage of businesses have security automation in place, it still takes nearly 10 months to discover and contain a major breach. And the financial ramifications, even if slightly lower, remain substantial at nearly $4 million per breach.
The need for robust cybersecurity practices and protections continue to grow in importance and relevance. For more information, contact the professionals at The Reschini Group today.
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The Reschini Group provides these updates for information only, and does not provide legal advice. To make decisions regarding insurance matters, please consult directly with a licensed insurance professional or firm.