Data Breaches Cost $3.9M on Average

A report released Tuesday by IBM that data breaches cost affected organizations $3.92 million on average worldwide, up 12 percent over the past five years. U.S. companies impacted by data breaches, however, lose $8.19 million on average.

According to the report, just over half of data breaches in the past six years were caused by malicious attacks, while inadvertent breaches – from human error or system glitches – caused 49 percent. However, companies hit by a malicious attack incurred over $1 million more in losses.

Malicious attacks aren't only more expensive, but they also take an average of 314 days to identify and contain compared to the overall average of 279 days. Two-thirds of a data breach's costs occur within the first year, while 22 percent occur in the second year.

The report also found that companies that have an incident response team and practice responses to a breach experienced $1.23 million less in data breach-related costs.