IBM Cost of a Data Breach Report 2022

Each year IBM works with Ponemon Institute to research breaches across several sectors of the economy. For the 12th consecutive year, healthcare breaches had the highest price tag. According to the IBM Cost of a Data Breach Report 2022, the average cost of a healthcare data breach has skyrocketed to $10.1 million. This is an increase of 9.4% from 2021 and an astronomical increase of 41.6% compared to 2020.

IBM Cost of a Data Breach Report 2022

How did the Cost of a Data Breach Report 2022 draw its conclusions? The conclusions drawn by the report were based on a study that surveyed 550 organizations across 17 industries. These organizations suffered data breaches between March 2021 and March 2022.

Of the organizations surveyed, 83% had experienced multiple breaches. To deal with the costs associated with these breaches, 60% of organizations had to increase the price of their product or service.

Costs Associated with Breaches

While there are many costs associated with breaches, the following contributed to the highest costs:

  • Detection and escalation: $1.44 million
  • Lost business: $1.42 million
  • Post-breach response: $1.18 million
  • Notification costs: $0.31 million

Many organizations fail to realize that the costs of recovering from a data breach can be ongoing. This is especially true In highly regulated industries such as healthcare. According to the report, 45% of costs for healthcare businesses are incurred in the first year, 31% in the second, and 24% beyond two years. This cost over time can be attributed to legal and regulatory costs in healthcare (HIPAA).

Cost by Type of Incident

There were several types of incidents explored in the study. Phishing attacks had the highest breach cost at $4.91 million and accounted for 16% of incidents. While the most common type of incident resulted from stolen login credentials, accounting for 19% of incidents and costing an average of $4.5 million.

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  • Ransomware attacks: cost $4.54 million (not including the cost of the ransom payment) and accounted for 11% of breaches¬†
  • Business email compromise attacks: cost $4.89 million and accounted for 6% of breaches
  • Cloud misconfigurations: cost $4.14 million and accounted for 15% of breaches
  • Vulnerabilities in third-party software: cost $4.55 million and accounted for 13% of breaches

A large portion of breached organizations reported that the incidents occurred in the cloud (45%). Organizations that used a public cloud, rather than a hybri