Business
10 statistics that show the cost of a data breach to companies
10 statistics that show the cost of a data breach to companies
How many businesses are ready to pony up several million in additional expenses this year? If history is any indicator, hundreds of companies will need to face the reality of cleaning up after a data breach before this time next year.
While a data breach costs a company millions on average, the toll can extend even further than just cleanup. Beyond Identity collected figures and statistics from IBM’s 2022 Cost of a Data Breach Report to understand how data breaches impacted companies and consumers. For the report, IBM conducted more than 3,000 interviews at 550 organizations that experienced a data breach.
A breach can cost the affected business $4.1 million on average globally. A data breach in the U.S. costs $9.44 million on average—the highest of any country in the world.
Billions of dollars in investments poured into cybersecurity startups in 2020, as companies began allowing employees to work from home for public health reasons. Demand for remote authentication rose as more workers logged in from multiple locations. Investors weren’t just betting on a remote work future—the case for heightened IT security had already been made prior to the pandemic.
The number of companies hit by hackers looking to steal data increased significantly during the decade preceding COVID-19’s arrival in the U.S.—and that trend is continuing. With less than five months remaining, 2022 is already shaping up to be a marquee year for cyberattacks.
Remediation of servers and IT equipment after a breach can be costly. A data breach can also trigger government fines and legal fees in addition to actual costs. ut businesses also have to quantify the intangible losses to their reputations that could spread from a data breach.
If a thief gets away with intellectual property, the targeted business could lose its competitive edge in the market. The theft could also cause a loss of revenue for months or even years afterward. Data breaches impact a company’s brand as well. Minneapolis-based retail giant Target not only had to pay an $18.5 million settlement as a result of its infamous breach of credit card data in 2013, but it also had to worry about the subsequent damage to its reputation that executives pointed to for slumping sales.
The costs that accrue from these attacks are myriad, and companies’ vulnerabilities are only increasing as more businesses move operations online and to the cloud. With tensions between the U.S. and countries like Russia, North Korea, and China heating up, threat levels will likely remain heightened. U.S. House Rep. Nancy Pelosi’s visit to Taiwan recently triggered cyberattacks said to have originated in China. And Iran and entities related to the Islamic Republic have been conducting ransomware attacks against U.S. organizations since late 2020, according to cybersecurity firm CrowdStrike’s latest report on global cyberthreats.
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83% of organizations reported more than one data breach
A majority of the organizations that experienced a data breach last year experienced multiple breaches, IBM’s latest report reveals, and recurrence of data breaches is likely to increase.
The report also suggests that as workplaces have moved out of the office and into homes, organizations have become more vulnerable to recurring attacks. Tech giants like Yahoo, Amazon, and Facebook have experienced repeated data breaches over the past decade.
Attackers don’t just use malware, but also social engineering. In some repeated breaches, vulnerabilities that weren’t detected and patched in the initial attack were exploited again. In others, the attacker was able to manipulate workers—if the current or ex-worker isn’t the attacker—to gain access to IT systems.
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The average cost of a data breach was $4.35 million
The average cost of a data breach has jumped since the turn of the decade. IBM’s 2020 report calculated an average cost of $3.86 million—the most current data reflects an increase of 12.7%. The cost was lowest among public sector organizations and highest for health care organizations. Health care businesses have suffered some of the most wide-reaching data breaches exposing millions of peoples’ sensitive records, including in some cases Social Security numbers.
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The average cost of a ransomware attack was $4.54 million
The average cost globally of a ransomware attack was $4.54 million in 2022, per IBM. The total figure doesn’t include the cost of the payment made to the culprits demanding the ransom. The cost of this kind of data breach is just slightly higher than the overall average cost of all data breaches.
A 2022 study by Cyberseason suggests that the majority of companies that suffer ransomware attacks pay a ransom fee to the attacker. Experts deem paying a ransom futile. Most attackers will return demanding a second ransom, because the victim was willing to pay the first time.
The FBI does not condone paying ransom fees, and warns that doing so doesn’t guarantee data will be recovered. Even after being paid the ransom, attackers can maintain copies of stolen information, and sell it for additional profit. Unfortunately, a faceless cybercriminal is not beholden to contracts or agreements. A business may not know the data has been sold until user data emerges later or is exploited for further social engineering to steal employee identities.
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Data breaches cost the health care industry $10.1 million—the highest of any field
No sector of the U.S. economy is more targeted than the health care industry. And for good reason—the health care industry maintains databases full of sensitive information that can be useful to criminals looking to steal identities. Hospitals are also critical infrastructure, privatized in the U.S., and remain a target for ideologically motivated foreign adversaries looking to disrupt Americans’ way of life.
The sector has led the ranking of costliest data breaches for the last 12 years IBM has performed its study. In 2022, there were at least 395 documented attacks on health care institutions in the U.S., according to the U.S. Department of Health and Human Services.
Health systems based in Texas, Arizona, and Massachusetts have suffered data breaches that have impacted millions of consumers.
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60% of organizations increased consumer prices due to a data breach
Attacks on private sector businesses aren’t just a problem for companies—they’re a headache for consumers as well.
Since breaches can be costly to recover from, a majority of businesses say they’ve raised the price of their product or services, passing a portion of the cost on to their customers. And with government-measured inflation at a 40-year high, consumers are already feeling the squeeze elsewhere in their lives.
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On average, it took 207 days to identify a data breach and 70 more to contain it
Data suggests that the quicker a data breach is contained, the cheaper it will be to remediate and recover. The length of time between the breach occurring and when it is identified and contained is referred to as the data breach lifecycle.
An organization can trim nearly $1 million from the costs associated with a data breach if it’s contained within 200 days, according to IBM data collected from 2016 to 2022.
Tero Vesalainen // Shutterstock
Stolen account credentials take the longest time to identify
A breach that involves stolen account credentials took 327 days on average to identify and contain in 2022, according to IBM. Breaches originating this way are also the fourth-most expensive type of data breach to contain and remediate, just behind those that originate from third-party software vulnerabilities, compromised business emails, and phishing attempts.
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Breaches cost about $1 million more for companies that had a large share of remote employees
Security comes at a cost. Various companies and services charge top dollar for products advertised to help businesses monitor and remediate cyber intrusions. While some might hesitate at the price for such services, a breach can wind up costing much more. That’s especially true for companies that have leaned into the growing trend of remote work, IBM’s latest study shows.
The percentage of employees working remotely had an impact on the ultimate costs of data breaches. The cost of a data breach for a company where 1 in 5 workers work remotely averaged $3.99 million in 2022. A data breach at a company where more than 81% of employees work remotely costs $5.1 million on average, according to IBM.
Where there was once a centralized office and office-based network to protect, many organizations now have to think about each home network and device their employees are accessing for their jobs when developing a security plan.
Canva
Mega breaches cost between $50 and $387 million on average
A mega breach, or one in which 1 million or more records are compromised, can saddle a company with tens of millions in additional costs.
These massive attacks occur less often and vary widely in cost. A mega breach involving up to 10 million lost documents costs organizations $49 million on average in 2022, down slightly from the previous two years, per IBM’s tracking. That figure jumped to $387 million on average in 2022.
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Almost 1 in 5 breaches were caused by stolen or compromised logins
Stolen login details are still the most common cause of a data breach. This is when the attacker obtains access to data either by purchasing stolen credentials on the black market or stealing them through phishing schemes or other methods.
Ever wanted to find out whether any of your credentials have been compromised in a breach? There’s a free tool for that called “Have I Been Pwned?”
This story originally appeared on Beyond Identity and was produced and
distributed in partnership with Stacker Studio.
It’s well-documented that the surest, and often best, return on investments comes from playing the long game. But between stocks and real estate, which is the stronger bet?
To find out, financial planning firm Wealth Enhancement Group analyzed data from academic research, Standard and Poor’s, and Nareit to see how real estate compares to stocks as an investment.
Data going back to 1870 shows the well-established power of real estate as a powerful “long-run investment.” From 1870-2015, and after adjusting for inflation, real estate produced an average annual return of 7.05%, compared to 6.89% for equities. These findings, published in the 2019 issue of The Quarterly Journal of Economics, illustrate that stocks can deviate as much as 22% from their average, while housing only spreads out 10%. That’s because despite having comparable returns, stocks are inherently more volatile due to following the whims of the business cycle.
Real estate has inherent benefits, from unlocking cash flow and offering tax breaks to building equity and protecting investors from inflation. Investments here also help to diversify a portfolio, whether via physical properties or a real estate investment trust. Investors can track markets with standard resources that include the S&P CoreLogic Case-Shiller Home Price Indices, which tracks residential real estate prices; the Nareit U.S. Real Estate Index, which gathers data on the real estate investment trust, or REIT, industry; and the S&P 500, which tracks the stocks of 500 of the largest companies in the U.S.
High interest rates and a competitive market dampened the flurry of real-estate investments made in the last four years. The rise in interest rates equates to a bigger borrowing cost for investors, which can spell big reductions in profit margins. That, combined with the risk of high vacancies, difficult tenants, or hidden structural problems, can make real estate investing a less attractive option—especially for first-time investors.
Keep reading to learn more about whether real estate is a good investment today and how it stacks up against the stock market.
Wealth Enhancement Group
Stocks and housing have both done well
REITs can offer investors the stability of real estate returns without bidding wars or hefty down payments. A hybrid model of stocks and real estate, REITs allow the average person to invest in businesses that finance or own income-generating properties.
REITs delivered slightly better returns than the S&P 500 over the past 20-, 25-, and 50-year blocks. However, in the short term—the last 10 years, for instance—stocks outperformed REITs with a 12% return versus 9.5%, according to data compiled by The Motley Fool investor publication.
Whether a new normal is emerging that stocks will continue to offer higher REITs remains to be seen.
This year, the S&P 500 reached an all-time high, courtesy of investor enthusiasm in speculative tech such as artificial intelligence. However, just seven tech companies, dubbed “The Magnificent 7,” are responsible for an outsized amount of the S&P’s returns last year, creating worry that there may be a tech bubble.
While indexes keep a pulse on investment performance, they don’t always tell the whole story. The Case-Shiller Index only measures housing prices, for example, which leaves out rental income (profit) or maintenance costs (loss) when calculating the return on residential real estate investment.
Wealth Enhancement Group
Housing returns have been strong globally too
Like its American peers, the global real estate market in industrialized nations offers comparable returns to the international stock market.
Over the long term, returns on stocks in industrialized nations is 7%, including dividends, and 7.2% in global real estate, including rental income some investors receive from properties. Investing internationally may have more risk for American buyers, who are less likely to know local rules and regulations in foreign countries; however, global markets may offer opportunities for a higher return. For instance, Portugal’s real estate market is booming due to international visitors deciding to move there for a better quality of life. Portugal’s housing offers a 6.3% return in the long term, versus only 4.3% for its stock market.
For those with deep enough pockets to stay in, investing in housing will almost always bear out as long as the buyer has enough equity to manage unforeseen expenses and wait out vacancies or slumps in the market. Real estate promises to appreciate over the long term, offers an opportunity to collect rent for income, and allows investors to leverage borrowed capital to increase additional returns on investment.
Above all, though, the diversification of assets is the surest way to guarantee a strong return on investments. Spreading investments across different assets increases potential returns and mitigates risk.
Story editing by Nicole Caldwell. Copy editing by Paris Close. Photo selection by Lacy Kerrick.
This story originally appeared on Wealth Enhancement Group and was produced and
distributed in partnership with Stacker Studio.
In today’s digital climate, consuming sports has never been easier. Thanks to a plethora of streaming sites, alternative broadcasts, and advancements to home entertainment systems, the average fan has myriad options to watch and learn about their favorite teams at the touch of a button—all without ever having to leave the couch.
As a result, more and more sports venues have committed to improving and modernizing their facilities and fan experiences to compete with at-home audiences. Consider using mobile ticketing and parking passes, self-service kiosks for entry and ordering food, enhanced video boards, and jumbotrons that supply data analytics and high-definition replays. These innovations and upgrades are meant to draw more revenue and attract various sponsored partners. They also deliver unique and convenient in-person experiences that rival and outmatch traditional ways of enjoying games.
In Los Angeles, the Rams and Chargers’ SoFi Stadium has become the gold standard for football venues. It’s an architectural wonder with closer views, enhanced hospitality, and a translucent roof that cools the stadium’s internal temperature.
The Texas Rangers’ ballpark, Globe Life Field, added field-level suites and lounges that resemble the look and feel of a sports bar. Meanwhile, the Los Angeles Clippers are building a new arena (in addition to retail space, team offices, and an outdoor public plaza) that will seat 18,000 people and feature a fan section called The Wall, which will regulate attire and rooting interest.
It’s no longer acceptable to operate with old-school facilities and technology. Just look at Commanders Field (formerly FedExField), home of the Washington Commanders, which has faced criticism for its faulty barriers, leaking ceilings, poor food options, and long lines. Understandably, the team has been attempting to find a new location to build a state-of-the-art stadium and keep up with the demand for high-end amenities.
As more organizations audit their stadiums and arenas and keep up with technological innovations, Uniqode compiled a list of the latest tech advancements to coax—and keep—fans inside venues.
Jeff Gritchen/MediaNews Group/Orange County Register // Getty Images
Just Walk Out technology
After successfully installing its first cashierless grocery store in 2020, Amazon has continued to put its tracking technology into practice.
In 2023, the Seahawks incorporated Just Walk Out technology at various merchandise stores throughout Lumen Field, allowing fans to purchase items with a swipe and scan of their palms.
The radio-frequency identification system, which involves overhead cameras and computer vision, is a substitute for cashiers and eliminates long lines.
RFID is now found in a handful of stadiums and arenas nationwide. These stores have already curbed checkout wait times, eliminated theft, and freed up workers to assist shoppers, according to Jon Jenkins, vice president of Just Walk Out tech.
Billie Weiss/Boston Red Sox // Getty Images
Self-serve kiosks
In the same vein as Amazon’s self-scanning technology, self-serve kiosks have become a more integrated part of professional stadiums and arenas over the last few years. Some of these function as top-tier vending machines with canned beers and nonalcoholic drinks, shuffling lines quicker with virtual bartenders capable of spinning cocktails and mixed drinks.
The kiosks extend past beverages, as many college and professional venues have started using them to scan printed and digital tickets for more efficient entrance. It’s an effort to cut down lines and limit the more tedious aspects of in-person attendance, and it’s led various competing kiosk brands to provide their specific conveniences.
Kyle Rivas // Getty Images
Mobile ordering
Is there anything worse than navigating the concourse for food and alcohol and subsequently missing a go-ahead home run, clutch double play, or diving catch?
Within the last few years, more stadiums have eliminated those worries thanks to contactless mobile ordering. Fans can select food and drink items online on their phones to be delivered right to their seats. Nearly half of consumers said mobile app ordering would influence them to make more restaurant purchases, according to a 2020 study at PYMNTS. Another study showed a 22% increase in order size.
Many venues, including Yankee Stadium, have taken notice and now offer personalized deliveries in certain sections and established mobile order pick-up zones throughout the ballpark.
Darrian Traynor // Getty Images
QR codes at seats
Need to remember a player’s name? Want to look up an opponent’s statistics at halftime? The team at Digital Seat Media has you covered.
Thus far, the company has added seat tags to more than 50 venues—including two NFL stadiums—with QR codes to promote more engagement with the product on the field. After scanning the code, fans can access augmented reality features, look up rosters and scores, participate in sponsorship integrations, and answer fan polls on the mobile platform.
Boris Streubel/Getty Images for DFL // Getty Images
Real-time data analytics and generative AI
As more venues look to reinvigorate the in-stadium experience, some have started using generative artificial intelligence and real-time data analytics. Though not used widely yet, generative AI tools can create new content—text, imagery, or music—in conjunction with the game, providing updates, instant replays, and location-based dining suggestions
Last year, the Masters golf tournament even began including AI score projections in its mobile app. Real-time data is streamlining various stadium pitfalls, allowing operation managers to monitor staffing issues at busy food spots, adjust parking flows, and alert custodians to dirty or damaged bathrooms. The data also helps with security measures. Open up an app at a venue like the Honda Center in Anaheim, California, and report safety issues or belligerent fans to help better target disruptions and preserve an enjoyable experience.
Story editing by Nicole Caldwell. Copy editing by Paris Close. Photo selection by Lacy Kerrick.
This story originally appeared on Uniqode and was produced and
distributed in partnership with Stacker Studio.
Inflation has cooled substantially, but Americans are still feeling the strain of sky-high prices. Consumers have to spend more on the same products, from the grocery store to the gas pump, than ever before.
Increased import costs are part of the problem. The U.S. is the largest goods importer in the world, bringing in $3.2 trillion in 2022. Import costs rose dramatically in 2021 and 2022 due to shipping constraints, world events, and other supply chain interruptions and cost pressures. At the June 2022 peak, import costs for all commodities were up 18.6% compared to January 2020.
While import costs have since fallen most months—helping to lower inflation—they remain nearly 12% above what they were in 2020. And beginning in 2024, import costs began to rise again, with January seeing the highest one-month increase since March 2022.
Machinery Partner used Bureau of Labor Statistics data to identify the soaring import costs that have translated to higher costs for Americans. Imports in a few industries have had an outsized impact, helping drive some of the overall spikes. Crop production, primary metal manufacturing, petroleum and coal product manufacturing, and oil and gas extraction were the worst offenders, with costs for each industry remaining at least 20% above 2020.
Machinery Partner
Imports related to crops, oil, and metals are keeping costs up
At the mid-2022 peak, import costs related to oil, gas, petroleum, and coal products had the highest increases, doubling their pre-pandemic costs. Oil prices went up globally as leaders anticipated supply disruptions from the conflict in Ukraine. The U.S. and other allied countries put limits on Russian revenues from oil sales through a price cap of oil, gas, and coal from the country, which was enacted in 2022.
This activity around the world’s second-largest oil producer pushed prices up throughout the market and intensified fluctuations in crude oil prices. Previously, the U.S. had imported hundreds of thousands of oil barrels from Russia per day, making the country a leading source of U.S. oil. In turn, the ban affected costs in the U.S. beyond what occurred in the global economy.
Americans felt this at the pump—with gasoline prices surging 60% for consumers year-over-year in June 2022 and remaining elevated to this day—but also throughout the economy, as the entire supply chain has dealt with higher gas, oil, and coal prices.
Some of the pressure from petroleum and oil has shifted to new industries: crop production and primary metal manufacturing. In each of these sectors, import costs in January were up about 40% from 2020.
Primary metal manufacturing experienced record import price growth in 2021, which continued into early 2022. The subsequent monthly and yearly drops have not been substantial enough to bring costs down to pre-COVID levels. Bureau of Labor Statistics reporting shows that increasing alumina and aluminum production prices had the most significant influence on primary metal import prices. Aluminum is widely used in consumer products, from cars and parts to canned beverages, which in turn inflated rapidly.
Aluminum was in short supply in early 2022 after high energy costs—i.e., gas—led to production cuts in Europe, driving aluminum prices to a 13-year high. The U.S. also imposes tariffs on aluminum imports, which were implemented in 2018 to cut down on overcapacity and promote U.S. aluminum production. Suppliers, including Canada, Mexico, and European Union countries, have exemptions, but the tax still adds cost to imports.
U.S. agricultural imports have expanded in recent decades, with most products coming from Canada, Mexico, the EU, and South America. Common agricultural imports include fruits and vegetables—especially those that are tropical or out-of-season—as well as nuts, coffee, spices, and beverages. Turmoil with Russia was again a large contributor to cost increases in agricultural trade, alongside extreme weather events and disruptions in the supply chain. Americans felt these price hikes directly at the grocery store.
The U.S. imports significantly more than it exports, and added costs to those imports are felt far beyond its ports. If import prices continue to rise, overall inflation would likely follow, pushing already high prices even further for American consumers.
Story editing by Shannon Luders-Manuel. Copy editing by Kristen Wegrzyn.
This story originally appeared on Machinery Partner and was produced and
distributed in partnership with Stacker Studio.
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