9/26/2023 0 Comments Unpacking cost![]() ![]() The XDR Advantage: Streamlining Detection and Response However, while regulatory environments play a role in the extent of longtail costs, factors such as the type of data exposed and the effectiveness of the organization’s incident response also significantly influence these costs. In highly regulated industries, IBM found an average of 24% of data breach costs were accrued more than two years after the breach, compared to just 8% in low regulatory environments. But they also incentivize stronger data protection measures, which are critical given the increasing sophistication of cyber threats. Regulations such as GDPR, CCPA, and others have undeniably raised the stakes for businesses post-breach, leading to an increase in longtail costs. IBM’s report provides insightful data on the “longtail” costs of data breaches-costs that surface two or more years after the incident, especially in industries with high data protection regulations. The Role of Regulatory Environments in Long-Term Costs According to a 2019 study by the Ponemon Institute, breaches involving customer records are usually the most costly, while the cost per lost or stolen record is typically higher for small businesses due to their limited resources. However, it’s important to consider that these are averages and the actual cost can vary significantly depending on the nature of the breached data and the organization’s size. This contrasts with the higher average cost of $4.86 million for breaches with a lifecycle exceeding 200 days. IBM’s 2022 report correlates the lifecycle of a data breach with its cost, stating that breaches with a lifecycle of fewer than 200 days cost an average of $3.74 million. Cost Implications of the Data Breach Lifecycle Resource constraints, lack of awareness, and differences in technical acumen often account for the large variations we see in breach detection times. The fact is that cybersecurity preparedness isn’t uniform across the business landscape. Larger or more well-capitalized businesses tend to be at the forefront of protecting their data and systems however, these large businesses often skew the cost spectrum when they are breached as their data can be orders of magnitude more valuable. On the other hand, a 2020 Cyentia Institute report suggests that 1 in 4 breaches are discovered within just 7 days of occurrence, which raises the question: What factors are causing such disparities in detection times? A logical conjecture points to the variation in cybersecurity maturity across industries and organizations. ![]() ![]() These figures indicate an overall reduction of 10 days or 3.5% compared to the previous year. IBM’s report states that, in 2022, the average time taken to identify a breach was 207 days, with an additional 70 days to contain it. Detecting and Containing: It’s a Race Against TimeĮvery data breach follows a lifecycle: from detection of the intrusion, through containment, to final resolution. The 2022 Cost of a Data Breach report from IBM provides a thorough analysis of these occurrences, but to further enrich the discussion, we need to fold in additional statistics and insights. Data breaches have grown from rare, catastrophic events to frequent nightmares for businesses across sectors. ![]()
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