According to the IBM Cost of a Data Breach Report 2023, the global average cost of a data breach in 2023 was $4.45 million, 15% more than in 2020. In response, 51% of organizations plan to increase cybersecurity spending this year.
For the financial industry, however, global statistics don’t tell the whole story. Finance firms lose approximately $5.9 million per data breach, 28% higher than the global average. In addition, evolving regulatory concerns play a role in how financial companies respond to cyberattacks and where they’re investing to reduce total risk.
By the numbers: The true cost of a data breach for financial companies
When it comes to calculating the true cost of a data breach for financial firms, monetary loss is just the beginning.
Consider common threat vectors. While 48% of financial attacks start with malicious actors, human error accounts for 33%. Phishing and compromised credentials take the top spots for initial attack vectors at 16% and 15%, respectively. If attackers are successful, they often have access to millions of transaction and client records — the average cost for breaches of 50 million records or more now tops $300 million.
It’s not all bad news, however. In terms of detecting and containing data breaches, finance organizations are ahead of the curve. Globally, companies take 204 days to identify and 73 days to contain a breach. In the financial industry, breaches are identified in 177 days and contained in 56 days on average.
Where are financial firms investing in cybersecurity?
More than half of organizations will increase their cybersecurity investments this year.
For financial firms, top areas of investment include security AI, automation and incident response (IR). In 2023, 39% of financial organizations reported “extensive use” of security AI and automation, which led to $850, ..
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