What's the cost of a data breach in 2023? IBM Security report

What's the cost of a data breach in 2023?

IBM Security® have issued their comprehensive report for the 18th consecutive year. 

The research was conducted independently by Ponemon Institute and sponsored, analyzed, and published by IBM Security®. They studied 553 organisations impacted by data breaches that occurred between March 2022 and March 2023. The businesses span 16 countries and regions and 17 different industries.

According to IBM Security®, "[This report] equips IT, risk management and security leaders with quantifiable evidence to help them better manage their security investments, risk profile and strategic decision-making processes."

This research examines the root causes and consequences (short- and long-term) of data breaches, alongside "the factors and technologies that enabled companies to limit losses—as well as those that led to increased costs."

5 findings that caught our eye...

1. "The average cost of a data breach reached an all-time high in 2023 of USD 4.45 million.

This represents a 2.3% increase from the 2022 cost of USD 4.35 million. Taking a long-term view, the average cost has increased 15.3% from USD 3.86 million in the 2020 report."

2. 82% of breaches "involved data stored in the cloud—public, private or multiple environments...

Attackers often gained access to multiple environments, with 39% of breaches spanning multiple environments and incurring a higher-than-average cost of USD 4.75 million."

3. Since 2020, healthcare data breach costs have increased by 53.3%

"Also, for the 13th year in a row, the healthcare industry reported the most expensive data breaches, at an average cost of USD 10.93 million."

4. The industries with the highest data breach cost have shifted

Compared to 2022, breach cost has slightly decreased for the Financial and Pharmaceutical industries, while Healthcare, Energy, and the Industrial sectors have increased.

"Technology dropped out of the top five while the industrial sector was added, showing a 5.8% increase as it
moved from the seventh-highest to the fifth. According to IBM threat intelligence, manufacturing is the industry most commonly targeted by cybercriminals."

5. The UK has the 6th highest data breach cost of all countries studied

"This year, the UK saw a significant drop in average cost at USD 4.21 million—down 16.6% from last year—resulting in placement just outside of the top five."

This year's top 5 included the United States (1), the Middle East (2), Canada (3), Germany (4), and Japan (5).

Access the full report. 

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