Written by: Campus Safety Staff (Nov 1, 2023)
Despite considerable investments in security technology, data breaches continue affecting companies across the globe and causing them more financial damage than ever, according to data presented by AltIndex.com. The average data breach cost has jumped by nearly $600,000 in the past three years and hit an all-time high of $4.45 million in 2023, the company announced in a press release.
According to the Ponemon Institute 2023 Cost of Data Breach Report, the average data breach cost has risen by 15% in the past three years. In 2020, it amounted to $3.86 million. But a year later, it jumped to $4.24 million. The negative trend has continued ever since, with the average cost of data breaches reaching an all-time high of $4.45 million in 2023. However, not all countries, regions, and markets saw the same cost growth.
U.S. and Middle East Experienced Biggest Cost Growth
The Middle East has witnessed the biggest data breach cost increase of all surveyed regions, hitting more than $8 million this year. The U.S., which has had the highest average data breach cost of all countries for the past 13 years, has seen the second-largest increase. U.S. data breaches cost an average of $8.64 million in 2023 or $840,000 more than three years ago.
The average data breach costs for other countries were:
- Italy: $670,000
- Canada: $630,00
- South Korea: $360,000
- United Kingdom: $310,000
- Germany: $220,000
Average Data Breach Cost in Healthcare Surged This Year
Healthcare continues to experience the highest data breach costs of all industries and has seen the biggest cost growth. Over the past three years, the average cost of a data breach in healthcare has grown by $3 million or more than 50%, rising from $7.13 million in 2020 to $10.53 million in 2023. The public sector saw the second-largest increase of $1.52 million, with its average data breach cost rising from $1.08 million to $2.6 million in three years.
For the K-12 and higher education market, the average yearly cost of data breaches fell slightly from $3.9 billion in 2020 to $3.65 billion this year.
The energy sector, which has been among the top five costliest industries for data breaches for years, has seen a positive trend. In 2023, the average cost of a data breach in this market stood at $4.78 million, or $1.6 million less than three years ago. Statistics show technology dropped out of the top five, as its average data breach cost dropped from over $5 million to $4.6 million in the past three years.
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