Cybersecurity continues to be a critical global risk for companies across all sectors, with the U.S. bearing the highest costs, particularly in the financial, retail, services, and real estate industries.
In the annual study conducted by the Ponemon Institute and sponsored by IBM Security, the 2024 report reveals that the average cost of a data breach is now $4.45 million globally.
IBM and Ponemon Institute 2024 Cost of Data Breach Study: Global Overview
U.S. data breach costs have surged to $9.48 million, marking an all-time high and a significant increase from previous years.
In the U.S., the average cost per compromised record is $309.
Compliance failures in the U.S. cost 43% more than in Europe, reflecting the financial burden of stringent regulations.
U.S. companies reported spending over $1.3 million on breach-related notification costs, the highest globally and more than triple that of other regions.
Containing a breach within 30 days reduces costs by $1.76 million on average, emphasizing the importance of a swift response.
For the sixth consecutive year, having an Incident Response (IR) team in place reduces breach costs by more than $30 per record.
Additional costs include security enhancements, consultancy services, legal fees, PR management, litigation, and regulatory fines.
U.S. organizations face the highest costs for lost business post-breach, averaging $5.78 million, driven by customer turnover, increased acquisition efforts, reputational damage, and diminished goodwill.
Preparedness is Key
Cybersecurity experts advise that all companies, regardless of size or location, are at risk of data breaches. The best defense is a proactive approach, emphasizing preparedness and resilience.
To read the full report, download the Ponemon/IBM 2024 report here. At Clarus Tech Partners, we have expertise in cybersecurity, data protection, risk management, data privacy, and regulatory compliance to address your cybersecurity risks and compliance requirements in the U.S., Europe, and globally. Schedule a consultation call by calling or emailing our team.
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