Every day, businesses are faced with the risk of a data breach. The IBM 2022 Cost of Data Breach Study found that the average cost of a data breach is $4.35 million.
But how many data breaches have occurred per year and what do these numbers mean for your business? And how can you protect yourself against a data breach?
Let’s explore data breach statistics to find out the true number and cost of data breaches and the most common causes of data breaches, and see what kind of impact they have on businesses.
Data Breach Statistics by Year
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How Many Data Breaches Have Occurred In 2021
There have been 1862 data breaches in the United States alone according to the ITRC Data Breach Analysis. This number is likely to continue to grow as more and more companies fall victim to hackers.
The consequences of these data breaches are significant, with an estimated total cost of $10 trillion by the year 2025. This cost includes both the financial losses suffered by businesses and individuals as well as the loss of privacy and security.
Data breaches are a serious problem that shows no signs of slowing down. Companies need to take steps to protect their networks and customers’ data, and individuals need to be vigilant about protecting their personal information.
How Many Data Breaches In 2022
According to the Identity Theft Resource Center, there were 817 data breaches in the United States in H1 of 2022.
How Many Data Breaches Happen Every Day
So the question is how common are data breaches?
On average, about 3.67 data breaches occur every day according to data we analyze from IRTC from 2016 to 2021. That turns out to be 1338.17 data breaches that occur every year. During this period, 8,029 data breaches have occurred in total.
Look At The Percentage Of Data Breaches That Are Caused By Human Error
About 91.5% of cyber-attacks are caused by human error according to the published data we find from Verizon Data Breaches Investigations Report, Stanford University, IBM, Varnois, Forbes, TechXplore, TheHackernews, Cybernews, Infosecurity-Magazine, ChiefExecutive.
And while many people might think that hackers are the biggest threat to companies, the fact is that employees pose a much greater risk due to their lack of cybersecurity knowledge.
A recent study by Tessian showed that nearly half (52%) of employees regularly open phishing emails, which are emails sent by scammers that look like they’re from a legitimate source to steal sensitive information.
And as more and more businesses move towards cloud-based storage and services, the risk of human error increases significantly. So how can companies reduce the risk of human error and protect themselves from data breaches? That’s a question every company must pay attention to.
What Percentage Of The Business Sector Accounts For Reported Data Breaches?
The 2021 Thales Data Threat Report found that 45 percent of US companies reported a data breach that was reported by Comparitech.
The most common cause of data breaches is hacking, followed by malicious insiders and theft. In order to protect your company from a data breach, you should implement strong security measures such as firewalls, anti-virus software, and employee training.
You should also ensure that your employees are aware of the signs of a data breach and know what to do if they suspect one has occurred.
Causes Of Data Breaches
There are many reasons why companies may suffer data breaches. One common cause is weak or outdated security systems. If a company’s security measures are not up to par, it may be easier for hackers to gain access to sensitive information.
Another potential cause of data breaches is employee error. If employees are not trained properly on how to handle customer data, they may make mistakes that leave the company vulnerable to attack.
Additionally, companies may be targeted by hacking groups for political or ideological reasons. If a company contains information that a hacker group disagrees with, they may try to steal or destroy that information to cause harm.
Finally, because they are huge and popular targets, businesses may be targets of cyber assaults. Attacking a well-known company may be seen as a means for hackers to get attention.
Whatever the cause, data breaches can be costly and damaging to both companies and customers alike.
Impact Of Data Breach On Companies
A data breach can have negative consequences for companies, including:
- financial losses
- loss of customers
- damage to reputation
- fines from regulators
- increased insurance premiums
- lawsuits from customers and shareholders
A data leak has the greatest influence on a company’s reputation. It might be tough to regain a customer’s trust after they have lost it. Breach of data might potentially result in regulatory action.
The General Data Protection Regulation (GDPR) fines companies up to 4% of their global revenue for violating data privacy laws. This can have a devastating effect on a company’s bottom line.
Companies must ensure that they are taking precautions to preserve their data as they collect more of it. Otherwise, they risk harsh repercussions.