Data breaches are costing Canadian companies millions of dollars each, according to IBM’s 2022 Cost of a Data Breach report.
The study examined 25 data breaches in Canada over eight years and found companies paid an average of $7.05 million per incident this year. The figure increased from the $6.75 million reported in 2021.
IBM says breaches contribute to higher costs for goods and services through hidden cyber taxes companies add. For example, the rise in cost for a particular item could be linked to several cyber incidents across the item’s supply chain, from the manufacturer to logistics and transportation companies.
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Companies in the financial sector are paying the highest cost for breaches at roughly $520 per record. The technology industry is second, paying $433 a record. The services industry rounds out the top three, paying $362 a record.
The report found that stolen or compromised user credentials were the most common method attackers used to target organizations.
Furthermore, companies that end up paying cyber criminals put themselves in a vulnerable position, as they are more likely to be targeted again in the future.
The study also found companies that consistently utilized security measures paid less per breach, at $4.31 million, compared to $8.09 million by companies that didn’t.
“Businesses need to put their security defences on the offence and beat attackers to the punch,” Charles Henderson, global head of IBM Security X-Force, said.
“The more businesses try to perfect their perimeter instead of investing in detection and response, the more breaches can fuel cost of living increases.”
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Source: IBM
