As the digital landscape further expands due to technological development, many exploit these advancements to commit malicious actions. As such, cybersecurity has been constantly evolving to battle the ever-present danger. As part of the efforts to contribute to cybersecurity, IBM conducted research on the cost of data breaches and recently released key data points. These data points highlighted the increasing cost of data breaches in the country, the industries and organisations heavily affected by these data breaches, and how AI and automated systems contribute to mitigating data breaches.
Cost of data breach
Based upon the “Cost of Data Breach Report 2023”, which was launched last month, IBM has released critical findings concerning data breaches in the Australian systems in its recent global survey.
According to the survey, data breaches cost an average of 32% more in the last five years, totalling AUD $4.03 million, based on the findings. The cost of detection and escalation reached AUD $1.68 million, accounting for the largest percentage of breach expenditures. This strongly indicates a shift toward more sophisticated breach investigations.
Financial services (AUD $5.56 million), technology (AUD $5.06 million), and education (AUD $4.61 million) hold the highest average breach costs in Australia, all of which exceed the national average (AUD $4.03 million).
The two most common attack types across all Australian breaches investigated were phishing schemes (over 22%) and stolen or compromised credentials (over 17%).
AI and automation
At the same time, Chief Technology Officer IBM Security of Asia Pacific Chris Hockings said that despite the rising cost of data breaches, AI and automation made the biggest impact on the speed of breach identification and containment for studied organisations.
This is based on a comparison of organisations that used AI and automated security systems and those that did not. Australian organisations that did not utilise security AI and automation to tackle cyber threats encountered breaches that incurred an average cost of AUD $2.14 million more than those that did. Meanwhile, organisations that extensively employed security AI and automation experienced a data breach lifecycle shorter by 117 days than examined firms that did not use these technologies.
In conclusion, based on the “Cost of Data Breach Report 2023”, there has been an increase of 32% in Australia’s average data breach cost to AUD $4.03 million, emphasising complex investigations and rising expenses.
The most affected by these breaches are industries engaging in finance, technology, and education. Despite the rising cost of data breach, AI and automation is slowly becoming critical in the rapid identification and containment. This is based on organisations extensively utilising these technologies experienced breach lifecycles 117 days shorter than those without. The report underscores the need for robust cybersecurity measures and strategic technology adoption to combat escalating breach challenges in our ever-expanding digital landscape.