Data breaches are a constant concern in today’s digital age, and maintaining data security is becoming more difficult.
The cost of responding to data breaches is rising in tandem with their severity and frequency. In just one year, the average cost of a data breach worldwide in 2024 rose by 10% to $4.88 million.
In 2024, what will be the typical causes of data breaches? How long does it take to find and address breaches? What can an SMB do when even the Pentagon finds it difficult to control data? Techopedia uses statistics to examine the subject.
What a Data Breach Will Cost in 2024
The average cost of a data breach, according to IBM’s Cost of a Data Breach Report 2024, is $4.88 million, which is a substantial amount for even a major organization.
Furthermore, these hacks persist, endangering our personal data, despite the existence of data protection laws such as the General Data Protection Regulation (GDPR) of the European Union (EU). This begs the question, “Are we currently protected from data breaches by strong enough privacy laws?”
Cybercriminals are constantly improving their skills in breaking into systems to gain data that they may utilize as leverage.
If a ransom is not paid, they may then threaten to sell or expose the data. As a matter of fact, malevolent or illegal attacks accounted for 55% of data breaches in 2024; IT malfunctions were in second place with 23%, and human error came in third with 22%.
Causes of 2024 Data Breach Incidents
Moreover, consumer personal identifiable information (PII), which might include phone numbers, email addresses, tax ID numbers, and residential addresses, was compromised in almost half of all incidents (46%).
Records pertaining to intellectual property (IP) ranked second (43% of breaches).
Because of this, data breaches are now so frequent that it might be argued that many people are no longer as concerned about them, even if we should be.
These violations still have grave repercussions, though. For example, the personal information of 2.7 billion people was purportedly stolen in a recent hack involving National Public Data (NPD), a US data broker.
The Function of Privacy Laws
Laws like the EU’s GDPR, which protect personal data and hold businesses accountable for data security and breaches, have been implemented in response to the growing threat of data breaches. Companies that violate GDPR requirements must notify breaches and face hefty fines for disclosing personal information.
In 2024, 34% of firms took longer than 72 hours to notify a data breach, compared to nearly half of them reporting in less time. A mere 11% were exempt from reporting the incident in any way, demonstrating disparities in the way breaches are managed around the world.
Despite the advances brought about by GDPR, there are still legal loopholes that expose firms to risk, especially those operating in the US, which are exempt from GDPR’s requirements.
Because the intricacies of data protection in these domains may not be adequately covered by current privacy rules, emerging technologies like artificial intelligence present new difficulties. For example, although AI can enhance cybersecurity, it can also be used as a tool to launch cyberattacks.
In addition, it is more difficult to enforce privacy laws due to the increase in “shadow data,” or unmanaged data that frequently escapes the notice of IT staff.
The Bottom Line
Data breaches are increasing in frequency and impact, causing financial and reputational damage to businesses. The digital world is rapidly changing, with new technologies like AI and shadow data creating challenges that current laws cannot fully handle. Stronger privacy legislation and improved cybersecurity are needed to safeguard personal information and prepare businesses for advanced cyber threats.
