Data breaches are a major problem that almost every business must face, either in terms of prevention or cleaning up the aftermath. In response, all kinds of data about data breaches have been collected over the years with the hope of identifying trends that can help businesses prevent, anticipate, and respond to these attacks.
Naturally, it’s important to understand where data breaches tend to occur, which industries they hit hardest, the types of attacks that occur, and what the cost of the damage is.
Where in the World Do Data Breaches Occur?
In 2021, Surfshark – a company that markets VPN and antivirus software – revealed that the United States is the country where most data breaches in the world occur. In 2021, the company reports, 212.4 million data breaches occurred in the U.S., a figure representing nearly 25% of all data breaches worldwide. With a population of around 30.3 million, that’s a breach for every two out of three people living in the U.S.
Which Industry Is Most Affected by Data Breaches?
IBM has tracked data breaches worldwide for 12 years and found that healthcare is the industry that’s hardest hit by cyber-attacks.
In 2021, the average cost of a data breach for a healthcare company was $10.1 million. That’s a 42% increase from any year prior to 2020.
What Was the Most Common Attack Vector?
Overall, stolen or compromised credentials represented the most common attack vector, accounting for about 19% of the reasons why data breaches occurred. At 16% of all breaches, phishing was the second most common attack vector and remains a major threat to companies.
Although compromised business emails (6%), accidental data loss or a lost device (5%), and social engineering (3%) accounted for the least common reasons for a data breach, they still caused millions of such breaches worldwide.
What Is the Average Cost of a Data Breach?
Worldwide, IBM found that the average cost of a data breach can be as much as $4.35 million. In the U.S., however, the average cost can be more than twice that at $9.44 million.
Cyber Liability Insurance Can Help
While various factors will inevitably affect the actual cost a data breach could cause your business, it’s essential to be as prepared as possible.
Limiting your company’s exposure to risk purely through preventative measures may not be enough. Cyber liability insurance can insulate a business from the financial impact that a data breach can cause. In addition to beefing up cybersecurity measures, business owners should strongly consider the benefits of cyber liability insurance.
You can learn more about cyber liability insurance from Insurance Specialists, Inc. – for more information, contact us online!