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Data Breach Costs Reach Record High!
Industries are facing a major challenge in the form of cyber threats and data breaches.
FREMONT, CA: The pandemic compelled companies to drastically change their approach towards technology.
A report by IBM suggests that more than 50% of the companies increased using cloud based features during the pandemic. As several companies encouraged its employees to work from their homes, unsecure home offices became vulnerable to data breaches. Setting up cyber security infrastructure for its employees has become a necessary cost that companies have to take up.
Companies spend an average of US$4.2 million for each data breach incident. The cost has increased by 10 percent from US$3.86million in the year 2020. The increase in the cost can be directly attributed to the operational changes during the pandemic, the report said. Companies that have not invested in the most recent cyber security infrastructure, that uses AI, automation and zero-trust approach, spend more for data breaches than companies with robust security. The implementation of AI and automation in cyber security has reduced the cost of data breaches significantly.
In companies where more than 50% of the workforce worked remotely, it took a couple of months longer to find the source of the data breach. The hospitality, retail and healthcare industries that went through major operational changes paid the highest amount for breaches. The healthcare sector, in particular, pays about US$9.3 million for every data breach incident. Stealing user credentials was the biggest reason for the data breaches, with 44 percent of all breaches exposing such data. Experts suggest that, Hackers could leverage user data for future data breaches. They strongly suggest companies to secure themselves from cyber attacks and security threats with an advanced security system that uses AI and automation.