Middle East Consumers Pay the Price of All-time High Data Breach Costs
IBM has published a study highlighting the importance of cybersecurity in an increasingly digital age. According to IBM Security’s annual Cost of a Data Breach Report, the Middle East has incurred losses of $7.46 million from data breaches in 2022 alone.
This figure already exceeding the total amount of losses accrued in each of the last eight years.
The latest edition of the Cost of a Data Breach Report — now in its 17th year — reveals costlier and higher-impact data breaches than ever before. As outlined by the study, the global average cost of a data breach has reached an all-time high of $4.35 million for surveyed organizations.
With breach costs increasing nearly 13% over the last two years of the report, the findings suggest these incidents may also be contributing to rising costs of goods and services.
In fact, 60% of studied organizations raised their product or services prices due to the breach, when the cost of goods is already soaring worldwide amid inflation and supply chain issues.
Notably, the report ranks the Middle East 2 among the top five countries and regions for the highest average cost of a data breach. As per the study, the average total cost of a data breach in the Middle East amounted to $7.46 million in 2022, the region being second only to the United States.
The report also spotlights the industries across the Middle East that have suffered the highest per-record costs in millions; the financial ($277), health ($264) and energy ($253) sectors taking first, second and third spot, respectively.
Fahad Alanazi, IBM Saudi General Manager, said: “Today, more so than ever, in an increasingly connected and digital age, cybersecurity is of the utmost importance. It is essential to safeguard businesses and privacy.
"As the digital economy continues to evolve, enhanced security will be the marker of a modern, world class digital ecosystem.”
The perpetuality of cyberattacks is also shedding light on the “haunting effect” data breaches are having on businesses, with the IBM report finding 83% of studied organizations have experienced more than one data breach in their lifetime.
Another factor rising over time is the after-effects of breaches on these organizations, which linger long after they occur, as nearly 50% of breach costs are incurred more than a year after the breach, the IBM report further stated.