Average data breach cost now over $4mn, shows 10% growth

According to data presented by Atlas VPN, the average financial damages caused by a data breach increased by nearly 10% year over year to $4.24 million (€3.57 million)in 2021. This is the highest spike since 2015.

A data breach can have a number of negative implications for a business, including lost sales, a tarnished reputation, data recovery fees, and possibly employee layoffs.

Edward Garb, a cybersecurity researcher at Atlas VPN, comments on the recent findings, “The record-high average losses can be directly linked to the rapid onset of remote work, as it created many new loopholes for cybercriminals to exploit.”

The numbers are provided by IBM, where between May 2020 and March 2021, researchers conducted roughly 3,500 separate interviews with individuals from 17 countries and 537 firms that had experienced a data leak. Seven years ago, the average total cost of a data breach stood at $3.79 million (€3.19 million). The lowest losses were seen in 2017, where companies suffered about $3.62 million (€3.05 million) in damages per incident.

Moreover, the average data leak cost in the US stands at $9.03 million (€7.60 million), which is the highest number globally. The Middle East is in second place, with average losses reaching $6.93 million (€5.83 million) per incident.

Data breach costs by industry

Interestingly, financial damages vary widely depending on the industry of the enterprise that fell victim to the data leak. Incidents in the healthcare industry are the costliest, as losses averaged a staggering $9.23 million (€7.77 million) this year. Healthcare companies tend to store a lot of sensitive data about their customers which can explain the high costs per breach.

The healthcare sector also experienced one of the highest year-over-year monetary loss increases. The damages jumped from $7.13 million (€6.00 million) in 2020 to $9.23 million (€7.77 million) in 2021, a 29.5% growth. Among the top five worst affected industries are the financial ($5.72 million (€4.82 million)), pharmaceuticals ($5.04 million (€4.24 million)), technology ($4.88 million (€4.11 million)), and energy ($4.65 million (€3.91 million)) sectors. The energy sector dropped from the second most costly in 2020 at $6.39 million (€5.38 million) to fifth place in 2021.

To read the full article, Click here.

Comment on this article below or via Twitter: @IoTNow_OR @jcIoTnow


9 IoT applications that will change everything

Posted on: September 1, 2021

Whether you are a future-minded CEO, tech-driven CEO or IT leader, you’ve come across the term IoT before. It’s often used alongside superlatives regarding how it will revolutionize the way you work, play, and live. But is it just another buzzword, or is it the as-promised technological holy grail? The truth is that Internet of

Read more

Which IoT Platform 2021? IoT Now Enterprise Buyers’ Guide

Posted on: August 30, 2021

There are several different parts in a complete IoT solution, all of which must work together to get the result needed, write IoT Now Enterprise Buyers’ Guide – Which IoT Platform 2021? authors Robin Duke-Woolley, the CEO and Bill Ingle, a senior analyst, at Beecham Research. Figure 1 shows these parts and, although not all

Read more

CAT-M1 vs NB-IoT – examining the real differences

Posted on: June 21, 2021

As industry players look to provide the next generation of IoT connectivity, two different standards have emerged under release 13 of 3GPP – CAT-M1 and NB-IoT.

Read more

IoT and home automation: What does the future hold?

Posted on: June 10, 2020

Once a dream, iot home automation is slowly but steadily becoming a part of daily lives around the world. In fact, it is believed that the global market for smart home automation will reach $40 billion by 2020.

Read more

How can IoT optimise the bearing supply chain?

Posted on: September 24, 2021

In 2020, stock management issues were estimated to cost UK manufacturers 66 billion GBP  because of disruption caused by the pandemic. Consequently, the quest to improve efficiency, cut waste and enhance supply chain operations is one that suppliers know all too well. Here Chris Johnson, managing director at miniature bearings specialist SMB Bearings, explains how the Internet of Things

Read more

Guardara uncovers key zero day vulnerability in IoT message broker software

Posted on: September 24, 2021

Developer-focused code security specialist Guardara announces it has uncovered a Zero Day Vulnerability in open source software from EMQ, the provider of open source software for IoT devices. The vulnerability, which was uncovered by a non-security expert using Guardara’s powerful testing tool, could have significant implications for connected IoT devices depending on NanoMQ.

Read more