Indian firms lost an average of ₹176 million in the last financial year due to data breaches

The report, titled ‘Cost of a data breach’ by IBM and the Ponemon Research Institute, was based on real-world data breaches experienced by 550 organizations globally between March 2021 and March 2022, and said that India alone had committed large-scale data breaches. But saw 29,500 violations. period, with the average per-record cost of a data breach reaching an eleven-year high.

India’s average per record cost of a data breach in 2022 was 6,100, an increase of 3.3% 5,900 in 2021, an increase of 10.4% 5,522 in 2020 were added to the report.

The global average cost of a data breach has also reached an all-time high of $4.35 million for organizations, with the cost of a breach rising nearly 13% over the past two years, the report said.

Viswanath Ramaswamy, Vice President, Technology, IBM Technology Sales, IBM India and South Asia, said, “These developments are contributing to the rising cost of goods and services. He added that 60% of global businesses have raised their prices as a result of data breaches, contributing to inflation, and inadvertently passing on costs to customers. Hackers are taking advantage of circumstances to force organizations to pay ransom, which is further compounded by a lack of cyber skills.

The continuation of cyberattacks also highlights the “ghostly impact” data breaches have on businesses, with IBM’s report finding 83% of organizations globally have experienced more than one data breach in their lifetime.

Another factor that increases over time is the subsequent effects of breaches on these organizations, which tend to be longer, as approximately 50% of the cost of the breach is incurred more than a year after the breach. For example, the study found increased response costs after breaches for Indian businesses 67.20 million in 2021 71 million in 2022, an increase of 5.65%. Other costs of data breaches come from lost business, detection and escalation.

The report also revealed that industrial ( 9,024), Services ( 7,085) and IT ( 6,900), are the top three industries that recorded the highest cost per record.

The study showed that there are three primary initial attack vectors for a data breach – stolen or compromised credentials. 216 million, phishing at 206 million, and accidental data loss or lost device 190 million. Increased third-party involvement, cloud migration and IoT and OT (operational technology) environments contributed to the highest cost increase.

Other reports have also highlighted the cost of data breaches, which are rising rapidly around the world, as the 2021 Cybersecurity Ventures report shows a 10% year-on-year increase in the cost of data breaches. The global cost of cybercrime is also increasing and could reach $10.5 trillion per year by 2025. To put the rapidly increasing cost of cyber threats into perspective, the annual cost in 2015 was about $3 trillion.

Ramaswamy said the report makes it clear that businesses cannot escape cyberattacks. “Zero-trust deployments, mature security practices and investments in AI-based platforms to stay on top of growing cybersecurity challenges can help make all the difference when businesses are attacked,” he said.

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