Data breaches occur when unauthorized individuals gain access to confidential data, exposing sensitive information ranging from personal details to financial records. Motives for data breaches can vary, with some hackers seeking financial gain, a competitive edge, or simply wanting to create chaos. For businesses, the stakes are even higher, as the costs of addressing breaches and paying legal fees can mount rapidly, and the blow to reputation can be even more damaging.
To combat data breaches, companies have started using data breach notification software to document and report attacks to authorities. The leading causes of data breaches and their impact can be seen through the following statistics:
– 83% of organizations faced more than one data breach in 2022.
– The global cost of cybercrime is set to reach $10.5 trillion by 2025, growing at a rate of 15% every year.
– The average cost of losing a data record is $150.
– In 2023, enduring a data breach cost organizations a global average of $4.45 million, a significant rise of 15% over the past three years.
– During the COVID-19 pandemic, cyber scams spiked by 400% in March 2020.
– 1/3 of retail, finance, or healthcare customers stop doing business with companies that have experienced a data breach, and 85% of them talk about the incident in their circles.
– 33.5% of customers air their grievances on social media platforms.
– After a poor experience, 91% of customers explore competitors’ products and services.
– Clearview AI had over 3 billion photos and its client list stolen in February 2020.
– 98% of data breaches at point-of-sale systems in the hospitality sector in 2021 occurred for financial gain.
– OpenAI’s ChatGPT revealed sensitive data, including payment details of 1.2% of its ChatGPT Plus subscribers due to a flaw in its open-source library in 2023.
– Organizations employing security artificial intelligence (AI) and automation save an average of $1.76 million compared to those without.
To prevent data breaches, organizations are increasing their cybersecurity budgets and investing in proactive measures. The following statistics highlight the trends in data breach prevention:
– 3 out of 5 chief information security officers (CISO) saw their cybersecurity budgets increase in 2023.
– Organizations spent over $150 billion on cybersecurity in 2021.
– 63% of companies already use or plan to install a biometric system.
– Business email compromises had an average detection and containment time of 308 days.
– 51% of organizations are enhancing security measures in response to breaches, including incident response plans, better employee training, and efficient threat detection and response tools.
– 65% of organizations plan to increase their cybersecurity budget in 2023.
– While 73% of organizations have an incident response (IR) plan, only 63% test it regularly.
– Companies using security artificial intelligence identified and controlled breaches 74 days faster on average.
– Investment in hardware-based security services dipped from 20% in 2015 to 17% due to limited functionality in virtual setups.
– 38% of organizations spent over 20% of their IT budget on security in 2023.
Data breach insurance provides coverage for immediate help and legal expenses. The following statistics delve into data breach insurance trends:
– Cyber insurance premiums are expected to reach $20 billion by 2025.
– 71% of losses in data breach insurance claims are covered under cyber policies, with the insurer covering 44% and the insured handling 27%.
– From 2013 to 2019, 73% of cyber insurance claims were due to data breaches and crisis management.
– 75% of organizations have purchased cyber liability insurance.
– The main costs in a data breach insurance claim include forensics, legal advice, and credit monitoring services.
– 27% of data breach insurance claims have exclusion terms resulting in no or partial payout.
– Manufacturing firms had the highest incident rate of cyber insurance claims at 22% due to malicious breaches.
– For retail and wholesale businesses, targeted data breaches constituted 30% of insurance claims, while unintentional breaches accounted for 8%.
– Nearly two-thirds of big companies in the US, or 64%, have opted for cyber insurance.
– In the IT and communications sectors, malicious breaches accounted for 24% of insurance claims, while accidental breaches made up 18%.
Data breaches affect companies of all sizes and industries, with various causes and impacts. The following general data breach statistics provide insights into modern data breaches:
– Ransomware attacks increased by 13% in 2022.
– In 2021, 57% of data breaches resulted in identity theft involving unauthorized financial transactions and scams.
– Remote work during the pandemic increased data breach risks, with 43% of remote employees making errors that exposed sensitive data.
– Microsoft Office files accounted for 48% of malicious email attachments.
– In 2019, 58% of companies discovered over a thousand folders with inconsistent permission settings, indicating gaps in data management practices.
– It took an average of 295 days to identify and control breaches stemming from phishing in 2022.
– Phishing is responsible for more than 22% of data breaches.
– 79% of organizations overseeing critical infrastructure have yet to implement a zero-trust architecture.
– 45% of data breaches involve cloud-based systems.
– 60% of organizations raised their prices following data breach experiences.
– Hospitals are the primary target for significant data breaches, accounting for 30% of all incidents.
– Data breaches exposed at least 42 million individual records from March 2021 to February 2022.
– The US reported around 817 data breaches in the first half of 2022.
– Phishing attacks in 2021 resulted in some of the most expensive data breaches in the last 17 years.
– 77% of firms are ill-prepared to handle an attack or data breach competently.
– 69% of companies experienced data breaches due to uneven cloud security settings.
– 36% of all data breaches in 2022 had connections to phishing.
– Compromised credentials were the most common cause of data breaches in 2021, occurring in 20% of cases.
– Detection and containment time for breaches declined from 287 days in 2021 to 277 days in 2022.
– Negligent employees accounted for 61% of data breach threats in healthcare.
– In regulated industries like healthcare and finance, data breach costs can accrue more than two years after the breach.
– 38% of organizations feel their security teams are sufficiently staffed.
– Myspace experienced a massive breach in 2013, affecting nearly 360 million accounts.
– The US reported about 6,550 data breaches from 2013 to 2017, significantly higher than the UK’s 570.
– Healthcare faced over 2,248 breaches between 2013 and 2016, making it the most targeted sector.
The cost of a data breach is significant and includes immediate financial hits, legal expenses, notification costs, and reputational damage. The following statistics highlight data breach costs:
– The direct cost of losing a data record is on average $150.
– Enduring a data breach cost organizations a global average of $4.45 million in 2023.
– Remote work during the pandemic increased data breach risks, with 43% of remote employees making errors that exposed sensitive data.
– Rebuilding trust and customer confidence after a data breach takes time and money.
– 60% of organizations raised their prices following data breach experiences.
Overall, these statistics emphasize the prevalence and impact of data breaches, the importance of proactive prevention measures, and the need for data breach insurance to mitigate financial losses.
Data breaches occur when unauthorized individuals gain access to confidential data, exposing sensitive information ranging from personal details to financial records. Motives for data breaches can vary, with some hackers seeking financial gain, a competitive edge, or simply wanting to create chaos. For businesses, the stakes are even higher, as the costs of addressing breaches and paying legal fees can mount rapidly, and the blow to reputation can be even more damaging.
To combat data breaches, companies have started using data breach notification software to document and report attacks to authorities. The leading causes of data breaches and their impact can be seen through the following statistics:
– 83% of organizations faced more than one data breach in 2022.
– The global cost of cybercrime is set to reach $10.5 trillion by 2025, growing at a rate of 15% every year.
– The average cost of losing a data record is $150.
– In 2023, enduring a data breach cost organizations a global average of $4.45 million, a significant rise of 15% over the past three years.
– During the COVID-19 pandemic, cyber scams spiked by 400% in March 2020.
– 1/3 of retail, finance, or healthcare customers stop doing business with companies that have experienced a data breach, and 85% of them talk about the incident in their circles.
– 33.5% of customers air their grievances on social media platforms.
– After a poor experience, 91% of customers explore competitors’ products and services.
– Clearview AI had over 3 billion photos and its client list stolen in February 2020.
– 98% of data breaches at point-of-sale systems in the hospitality sector in 2021 occurred for financial gain.
– OpenAI’s ChatGPT revealed sensitive data, including payment details of 1.2% of its ChatGPT Plus subscribers due to a flaw in its open-source library in 2023.
– Organizations employing security artificial intelligence (AI) and automation save an average of $1.76 million compared to those without.
To prevent data breaches, organizations are increasing their cybersecurity budgets and investing in proactive measures. The following statistics highlight the trends in data breach prevention:
– 3 out of 5 chief information security officers (CISO) saw their cybersecurity budgets increase in 2023.
– Organizations spent over $150 billion on cybersecurity in 2021.
– 63% of companies already use or plan to install a biometric system.
– Business email compromises had an average detection and containment time of 308 days.
– 51% of organizations are enhancing security measures in response to breaches, including incident response plans, better employee training, and efficient threat detection and response tools.
– 65% of organizations plan to increase their cybersecurity budget in 2023.
– While 73% of organizations have an incident response (IR) plan, only 63% test it regularly.
– Companies using security artificial intelligence identified and controlled breaches 74 days faster on average.
– Investment in hardware-based security services dipped from 20% in 2015 to 17% due to limited functionality in virtual setups.
– 38% of organizations spent over 20% of their IT budget on security in 2023.
Data breach insurance provides coverage for immediate help and legal expenses. The following statistics delve into data breach insurance trends:
– Cyber insurance premiums are expected to reach $20 billion by 2025.
– 71% of losses in data breach insurance claims are covered under cyber policies, with the insurer covering 44% and the insured handling 27%.
– From 2013 to 2019, 73% of cyber insurance claims were due to data breaches and crisis management.
– 75% of organizations have purchased cyber liability insurance.
– The main costs in a data breach insurance claim include forensics, legal advice, and credit monitoring services.
– 27% of data breach insurance claims have exclusion terms resulting in no or partial payout.
– Manufacturing firms had the highest incident rate of cyber insurance claims at 22% due to malicious breaches.
– For retail and wholesale businesses, targeted data breaches constituted 30% of insurance claims, while unintentional breaches accounted for 8%.
– Nearly two-thirds of big companies in the US, or 64%, have opted for cyber insurance.
– In the IT and communications sectors, malicious breaches accounted for 24% of insurance claims, while accidental breaches made up 18%.
Data breaches affect companies of all sizes and industries, with various causes and impacts. The following general data breach statistics provide insights into modern data breaches:
– Ransomware attacks increased by 13% in 2022.
– In 2021, 57% of data breaches resulted in identity theft involving unauthorized financial transactions and scams.
– Remote work during the pandemic increased data breach risks, with 43% of remote employees making errors that exposed sensitive data.
– Microsoft Office files accounted for 48% of malicious email attachments.
– In 2019, 58% of companies discovered over a thousand folders with inconsistent permission settings, indicating gaps in data management practices.
– It took an average of 295 days to identify and control breaches stemming from phishing in 2022.
– Phishing is responsible for more than 22% of data breaches.
– 79% of organizations overseeing critical infrastructure have yet to implement a zero-trust architecture.
– 45% of data breaches involve cloud-based systems.
– 60% of organizations raised their prices following data breach experiences.
– Hospitals are the primary target for significant data breaches, accounting for 30% of all incidents.
– Data breaches exposed at least 42 million individual records from March 2021 to February 2022.
– The US reported around 817 data breaches in the first half of 2022.
– Phishing attacks in 2021 resulted in some of the most expensive data breaches in the last 17 years.
– 77% of firms are ill-prepared to handle an attack or data breach competently.
– 69% of companies experienced data breaches due to uneven cloud security settings.
– 36% of all data breaches in 2022 had connections to phishing.
– Compromised credentials were the most common cause of data breaches in 2021, occurring in 20% of cases.
– Detection and containment time for breaches declined from 287 days in 2021 to 277 days in 2022.
– Negligent employees accounted for 61% of data breach threats in healthcare.
– In regulated industries like healthcare and finance, data breach costs can accrue more than two years after the breach.
– 38% of organizations feel their security teams are sufficiently staffed.
– Myspace experienced a massive breach in 2013, affecting nearly 360 million accounts.
– The US reported about 6,550 data breaches from 2013 to 2017, significantly higher than the UK’s 570.
– Healthcare faced over 2,248 breaches between 2013 and 2016, making it the most targeted sector.
The cost of a data breach is significant and includes immediate financial hits, legal expenses, notification costs, and reputational damage. The following statistics highlight data breach costs:
– The direct cost of losing a data record is on average $150.
– Enduring a data breach cost organizations a global average of $4.45 million in 2023.
– Remote work during the pandemic increased data breach risks, with 43% of remote employees making errors that exposed sensitive data.
– Rebuilding trust and customer confidence after a data breach takes time and money.
– 60% of organizations raised their prices following data breach experiences.
Overall, these statistics emphasize the prevalence and impact of data breaches, the importance of proactive prevention measures, and the need for data breach insurance to mitigate financial losses.