In 2024, data breach costs reached an all time high according to a recent IBM report. The IBM 2024 Cost of a Data Breach Report breaks down what data breach incidents are really costing organizations. It also looks at why those costs are rising, and how emerging technologies like AI are changing the game. As data breaches get more expensive, more frequent, and harder to manage, cybersecurity has become a growing threat to organizations of all sizes. Read on for some highlights from the report. You can also scroll to the end for a link to the full report.
Data Breach Costs are Escalating
According to the IBM 2024 Cost of a Data Breach Report, the average data breach cost has surged to USD4.88 million, up from USD4.45 million in 2023—a 10% spike, marking the highest increase since the pandemic.
This cost surge is largely attributed to significant business disruptions and the extensive efforts required for post-breach responses, which combined totaled USD2.8 million—the highest in six years. Companies face operational downtime, customer churn, reputation damage, regulatory fines, and expensive remediation efforts.
Notably, 70% of the 604 organizations studied reported that the breach caused significant or very significant disruption to their operations.
A note on mega breaches:
The report uses the term ‘mega breach’ to refer to a breach impacting more than 1 million compromized records. These huge breaches were analyzed separately to avoid skewing the rest of the analysis. The average cost of a mega breach increased by 13% in 2024. The average cost of the largest breach category, 50 – 60 million records impacted, was USD375 million according to the report.
Industrial Sector Facing the Highest Cost Increases
Not all industries experience breaches the same way. In 2024, the industrial sector saw the largest increase in breach costs, rising by an average of USD830,000 per breach—the steepest of any industry.
Industrial organizations are highly sensitive to operational downtime. The time to identify and contain breaches in this sector remains high, averaging 199 days to detect and 73 days to contain—longer than many other industries.
The financial and healthcare sectors also face higher-than-average breach costs, with healthcare breaches exceeding US$9 million per incident due to strict regulations and sensitive patient data.
Lost Business and Post-Breach Response — Key Cost Drivers
Lost business costs have risen nearly 11% over the past year. When systems go down due to a cyberattack, organizations lose revenue, productivity, and customer trust. Many businesses struggle to recover lost customers, leading to long-term financial damage.
Post-breach response costs are also increasing. Companies must invest in customer service teams, credit monitoring services, regulatory compliance, and public relations efforts to repair their reputation. Regulatory fines are becoming more severe, further adding to the financial strain.
AI-Driven Security Can Save Millions
One of the most significant findings from the 2024 report is that security AI and automation dramatically reduce breach costs. Two out of three organizations now deploy AI in their security operations centers, a 10% increase from last year.
When AI is extensively used in prevention—including attack surface management (ASM), red-teaming, and posture management—organizations save an average of USD2.2 million per breach. This is the largest cost reduction identified in the report.
Companies without AI-driven security take longer to detect threats, suffer greater financial losses, and struggle to respond effectively. AI-powered solutions help detect, isolate, and mitigate attacks faster, minimizing damage.
Faster Detection Reduces Loss
The time it takes to identify and contain a breach is a critical factor in overall costs. The global average breach lifecycle in 2024 fell to 258 days, the shortest in seven years, compared to 277 days in 2023.
However, breaches involving stolen or compromised credentials took the longest to detect and contain—292 days. Similar social engineering attacks also had long durations, with phishing attacks lasting an average of 261 days and social engineering incidents taking 257 days.
Faster response times lead to lower financial losses and reduced reputational damage. Companies investing in AI-driven detection, continuous monitoring, and strong incident response plans are more successful in limiting breach impacts.
Lowering Breach Costs: What Works?
The IBM 2024 report highlights several strategies that can help organizations reduce breach costs:
- Employee training – Organizations with strong employee training, specifically surrounding phishing, saw breach costs average USD4.15 million, compared to USD5.10 million for poorly trained teams.
- Investing in AI-driven security – Organizations using extensive AI automation in prevention workflows saved USD2.2 million per breach.
- Improving breach detection speed – Organizations that identify and contain breaches faster suffer lower financial losses.
- Adopting proactive incident response plans – Organizations with well-prepared security teams and tested response strategies reduce breach costs.
- Engaging law enforcement in ransomware cases – Companies that involved law enforcement in ransomware attacks saved an average of USD1 million.
About the Report
The IBM Cost of a Data Breach Report 2024 analyzed data from 604 organizations of all sizes, spanning 17 industries across 16 countries and regions. Its findings highlight a clear message: as data breaches grow more costly, organizations that prioritize prevention and rapid response will be far better equipped to manage and mitigate future cyber threats.
Get the full report here: IBM 2024 Cost of a Data Breach Report
