IBM recently put out their annual cost of data breach report. As the report reveals how much a data breach costs in 2022, they also gave several insights that show rising risks. In this changing world, it has become more evident to understand cyber risk. Analyzing the report helps uncover unknown information and can hopefully help mitigate the cost of future data breaches.
The average costs of a data breach have reached an all-time high. Data breach costs surged 13% from 2020 to 2022, currently having an average cost of 4.35 million dollars. Specifically, security AI had the biggest cost-mitigating effect. Of course, along with the financial damage, the cleanup is not simple. Many companies rely fully on MSPs to fix the mess of a breach. However, MSPs and the business will do a little damage control. Bringing in an MSP at the start is the smartest move to first and foremost prevent a breach entirely. MSPs provide preventative security services but can’t solely clean up the mess of a data breach. There is a list of long-term damage that an MSP can’t control. For example, a breach can lead to reputational damage and the need to urgently boost sales to replace lost customer. We advise all businesses to bring in an MSP as soon as possible if not already in your business.
The IBM report also found that data breaches contribute to inflation this year. Data breaches are becoming more common and costly. Although numerous factors contribute to inflation, breaches are a part of the problem. MSPs are inflation fighters, and the reports evidence proves just that.
One good aspect regarding breaches in 2022 is that response times were one month faster with XDR technologies. IBM states “Organizations with XDR shortened the time to identify and contain the data breach by about a month on average compared to organizations that didn’t implement it.”
The recently released report from IBM provides an abundance of interesting and insightful finds that shows a continuous rising risk of data breaches. Some of the main takeaways shows the cleanup of a breach is not simple or cheap, and the breaches have contributed to 2022’s inflation. With breaches rising and becoming more common and complex, security technology has attempted to keep up in improving response times with XDR. The best way to prevent a data breach in any organization is to bring in an MSP. MSPs provide security, and sometimes are mistaken for being responsible for complete damage control. They can help to an extent, but experts will need to be hired to fix and clean up the damage in data loss. IBM’s 2022 breach report dives into other points, but the biggest takeaway is to understand the rising risks, short-term and long-term, of data breaches within businesses and just how MSPs can play a big role is preventing this major problem.