Data breach costs hit record $4Mn in 2024, says IBM
MASSACHUSETTS, UNITED STATES — IBM’s latest Cost of a Data Breach Report revealed that the global average cost of a data breach soared to $4.88 million in 2024, marking a 10% increase from the previous year.
This jump is the largest since the pandemic, highlighting the growing disruption and financial burden on businesses.
Staffing shortages and AI benefits
The report, based on an analysis of 604 organizations worldwide, identified several critical factors contributing to the rising costs.
Notably, severe staffing shortages in security teams have heightened the issue. Organizations facing high-level staffing shortages experienced breach costs averaging $5.74 million, compared to $3.98 million for those with adequate staffing.
Conversely, the deployment of artificial intelligence (AI) and automation has proven beneficial. Organizations extensively using these technologies saw an average reduction in breach costs of $2.2 million.
“Businesses are caught in a continuous cycle of breaches, containment, and fallout response,” said Kevin Skapinetz, Vice President of Strategy and Product Design at IBM Security.
“To get ahead, businesses should invest in new AI-driven defenses and develop the skills needed to address emerging risks.”
Intellectual property theft and shadow data concerns
The report also highlighted a significant rise in intellectual property (IP) theft, with a 27% increase over the previous year.
More than one-third of breaches involved shadow data, or data stored in unmanaged sources, which contributed to higher costs and longer breach lifecycles.
Breaches involving shadow data cost an average of $5.27 million and took 291 days to identify and contain.
Data breaches are causing substantial business disruption, with 70% of breached organizations reporting significant operational impacts.
Recovery from these breaches remains a lengthy process, with most organizations taking over 100 days to fully recover.
Only 12% of breached organizations managed to achieve full recovery within this period.
Industry-specific insights and future investments
IBM’s report revealed that the healthcare sector continues to bear the highest breach costs, averaging $9.77 million per incident. This sector has held the top spot for 14 consecutive years, reflecting its vulnerability to cyberattacks.
In response to these challenges, many organizations are planning to increase their security budgets. The report noted that 63% of organizations intend to boost their security investments, focusing on employee training, incident response planning, and advanced threat detection technologies.
