Despite considerable investments in security technology, data breaches continue affecting companies across the globe and causing them more financial damage than ever.
According to data presented by AltIndex.com, the average data breach cost has jumped by nearly $600 000 in the past three years and hit an all-time high of $4,45-million in 2023.
According to the Ponemon Institute 2023 Cost of Data Breach Report, the average data breach cost has risen by 15% in the past three years. In 2020, it amounted to $3,86-million. But a year later, it jumped to $4,24-million. The negative trend has continued ever since, with the average cost of data breaches reaching an all-time high of $4,45-million in 2023.
However, not all countries, regions, and markets saw the same cost growth.
Statistics show the Middle East has witnessed the biggest data breach cost increase of all surveyed regions. In 2020, the data breach cost in this region amounted to $6,52-million, or nearly 70% more than the global average that year. However, this figure has grown by a massive $1,5-million since then and hit over $8-million this year.
The US, which has had the highest average data breach cost of all countries for the past 13 years, has seen the second-largest increase. Statistics show that data breaches in the US cost an average of $8,64-million in 2023 or $840 000 more than three years ago.
Italy saw the third-largest data breach cost growth of $670 000. Canada and South Korea follow with a $630 000 and $360 000 increase in three years, respectively. The report showed other European countries, like Germany and the UK, saw a much smaller increase, with their average data breach cost rising by $220 000 and $310 000.
Healthcare continues to experience the highest data breach costs of all industries. However, the report showed this market has also seen the biggest cost growth.
Over the past three years, the average cost of a data breach in healthcare has grown by $3-million or more than 50%, rising from $7,13-million in 2020 to $10,53-million in 2023. The public sector saw the second-largest increase of $1,52-million, with its average data breach cost rising from $1,08-million to $2,6-million in three years.
On the other hand, the energy sector, which has been among the top five costliest industries for data breaches for years, has seen a positive trend. In 2023, the average cost of a data breach in this market stood at $4,78-million, or $1,6-million less than three years ago. Statistics show technology dropped out of the top five, as its average data breach cost dropped from over $5-million to $4,6-million in the past three years.