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The Average Data Breach Cost Has Jumped by Almost $600,000 Since 2020
November 2023 by
Despite considerable investments in security technology, data breaches continue affecting companies across the globe and causing them more financial damage than ever.
According to data presented by AltIndex.com, the average data breach cost has jumped by nearly $600,000 in the past three years and hit an all-time high of $4.45 million in 2023.
The United States and the Middle East Saw the Biggest Data Breach Cost Growth in Three Years
According to the Ponemon Institute 2023 Cost of Data Breach Report, the average data breach cost has risen by 15% in the past three years. In 2020, it amounted to $3.86 million. But a year later, it jumped to $4.24 million. The negative trend has continued ever since, with the average cost of data breaches reaching an all-time high of $4.45 million in 2023. However, not all countries, regions, and markets saw the same cost growth.
Statistics show the Middle East has witnessed the biggest data breach cost increase of all surveyed regions. In 2020, the data breach cost in this region amounted to $6.52 million, or nearly 70% more than the global average that year. However, this figure has grown by a massive $1.5 million since then and hit over $8 million this year.
The United States, which has had the highest average data breach cost of all countries for the past thirteen years, has seen the second-largest increase. Statistics show that data breaches in the United States cost an average of $8.64 million in 2023 or $840,000 more than three years ago.
Italy saw the third-largest data breach cost growth of $670,000. Canada and South Korea follow with a $630,000 and $360,000 increase in three years, respectively. The report showed other European countries, like Germany and the United Kingdom, saw a much smaller increase, with their average data breach cost rising by $220,000 and $310,000.
Average Data Breach Cost in Healthcare Surged by $3M Since 2020
Healthcare continues to experience the highest data breach costs of all industries. However, the report showed this market has also seen the biggest cost growth. Over the past three years, the average cost of a data breach in healthcare has grown by $3 million or more than 50%, rising from $7.13 million in 2020 to $10.53 million in 2023. The public sector saw the second-largest increase of $1.52 million, with its average data breach cost rising from $1.08 million to $2.6 million in three years.
On the other hand, the energy sector, which has been among the top five costliest industries for data breaches for years, has seen a positive trend. In 2023, the average cost of a data breach in this market stood at $4.78 million, or $1.6 million less than three years ago. Statistics show technology dropped out of the top five, as its average data breach cost dropped from over $5 million to $4.6 million in the past three years.
