The General Data Protection Regulation (GDPR) requires companies doing business with EU citizens to notify authorities of breaches within 72 hours. This reporting and other post-breach responsibilities-from paying fines, settlements and legal fees to providing free credit monitoring for affected customers-costs the average data breach victim USD 1.49 million. states also have their own data breach notification laws. Department of Health and Human Services, affected individuals, and (in some cases) the media if protected health information is breached. organizations subject to the Health Insurance Portability and Accountability Act (HIPPA) must notify the U.S. Cyber Incident Reporting for Critical Infrastructure Act of 2022 (CIRCIA) requires organizations in national security, finance, critical manufacturing, and other designated industries to report cybersecurity incidents affecting either personal data or business operations to the Department of Homeland Security within 72 hours. Data breach reporting requirements can be particularly costly and time-consuming. And post-breach expenses-including everything from fines, settlements, and legal fees to reporting costs and providing free credit monitoring from affected customers-cost the average data breach victim USD 1.49 million. But the cost of detecting and containing a breach is slightly more expensive, averaging USD 1.44 million. Resulting lost business, revenue and customers cost data breach victims USD 1.42 million on average. For example, according to the IBM report, the average healthcare data breach cost USD 10.10 million-more than twice the average cost of all breaches.ĭata breach costs arise from several factors, some more surprising than others. The value of the data these companies handle-government secrets, patient health information, bank account numbers and log-in credentials-and the strict regulatory fines and penalties these organizations face in the event of a breach make their breach costs even higher. But the consequences of a data breach are especially severe for organizations in fields such as healthcare, finance, and the public sector. Organizations of every size and type are vulnerable to breaches-large and small businesses, public and private companies, federal, state and local governments, non-profit organizations. Eighty-three (83) percent of organizations surveyed in the report experienced more than one data breach. According to IBM's Cost of a Data Breach 2022 report, the global average cost of a data breach is USD 4.35 million the average cost of a data breach in the United States is more than twice that amount, USD 9.44 million.
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