A new study warns that data breaches could cost the world $5 trillion by 2024. This alarming figure shows how serious cybercrime is for businesses and people everywhere. It’s crucial for companies to act fast to protect their data and keep their finances safe.
Data breaches don’t just hurt a company’s wallet. They also lead to lost productivity, damage to reputation, and a loss of customer trust. With 1 in 3 breaches involving hidden data and 40% happening in multiple places, keeping data safe is a big challenge.
But there’s hope. The study found that using advanced security tools can save companies $2.22 million. This shows why investing in top-notch cybersecurity is key to fighting the rising costs of data breaches.
The Growing Threat of Cybercrime and Data Breaches
The world of cybersecurity is changing fast, with more and bigger cyber attacks happening. The numbers are scary. Ransomware could cost $20 billion by 2021, up from $325 million in 2015. Also, ransomware attacks on businesses will happen every 11 seconds by 2021.
The Rising Scale of Global Cyber Attacks
The COVID-19 pandemic has made cybersecurity even harder. Now, nearly half of the U.S. workforce works from home, making it harder to stay safe. By 2023, there will be three times more devices connected to the internet than people. This gives hackers more chances to attack.
In Germany, a hospital’s IT failure led to the first ransomware-related death. This shows how serious the threat is.
Key Factors Driving Data Breach Costs
The cost of a data breach has hit a record $4.88 million in 2024. Human mistakes cause 88% of breaches. It takes 194 days to find a breach, and 292 days to fix it, making it costly.
Cyber fatigue affects up to 42% of companies. And 56% of Americans don’t know what to do if their data is breached.
Impact on Business Operations and Economy
The economic damage from cyber threats is huge. The cybersecurity market has grown from $3.5 billion in 2004 to over $120 billion in 2017. Cybersecurity spending is expected to hit $1 trillion from 2017 to 2021.
The healthcare industry will spend $125 billion on cybersecurity from 2020 to 2025. A recent outage cost companies over $5 billion. Hackers claimed to have stolen 2.7 billion personal records in the U.S., Canada, and the U.K.
These trends show how urgent it is for businesses to focus on preventing cyber attacks. They need to plan for incidents and take strong security measures. As threats grow, a strong, multi-layered cybersecurity approach is key to protecting businesses and their data.
Cost of data breaches will grow to $5 trillion in 2024, claims report
A recent report predicts a shocking increase in data breach costs. By 2024, the global cost is expected to reach a staggering $5 trillion. This highlights the growing threat of cybercrime and the need for better data security.
The rise in data breach costs is mainly due to more frequent and complex cyber attacks. In the second quarter of 2024, global cyber attacks hit an average of 1,636 per organization per week. This is a 30% increase from the previous year. Cybercrime losses jumped to $12.5 billion in 2023 and are forecasted to hit $13.82 trillion by 2028.
The report also talks about the role of security AI and automation in reducing data breach costs. Companies that use these technologies saved an average of $2.22 million. This shows how important it is to use new security solutions to fight data breaches.
Interestingly, the report found that one in three data breaches involved shadow data. Shadow data is data stored outside the main systems and often goes unnoticed. Also, 40% of data breaches involved data stored in multiple environments, making security even harder.
The report also showed the financial impact of data breaches. Breached data stored in public clouds cost the most, at $5.17 million on average. Moreover, 75% of the increase in breach costs came from lost business and response activities. This shows the wide-reaching effects of data breaches.
As our world becomes more digital, the threat of data breaches and cybercrime grows. This report is a warning for companies to focus on data security. They should invest in advanced technologies like security AI and automation to protect their valuable assets.
Conclusion
Cybercrime costs are set to hit $10.5 trillion by 2025. This shows how critical it is to have strong cybersecurity and data protection. To fight these threats, companies need to use AI and automation to predict and protect data.
Understanding your data and improving prevention is key. Businesses should also focus on training for cyber responses. This way, they can lower the costs of data breaches and protect their operations.
IBM has a range of products and services that use AI and automation. These tools help businesses stay ahead of cyber threats. By working with IBM, companies can protect their most valuable assets. This will help us build a safer digital future.
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