Data Breaches Record INR 195 Million loss on Indian Businesses: Report

A new report from IBM reveals that the average cost of a data breach in India has soared to a record-breaking INR 195 million in 2024. This marks a 39% increase since 2020 and a 9% jump from the previous year. The escalating costs are primarily driven by the rising costs of lost business and notification expenses.

The industrial sector emerged as the hardest hit, with an average breach cost of INR 255 million. Other significantly impacted industries include technology and pharmaceuticals.

"As cyberattacks grow more sophisticated, their impact on Indian businesses is becoming increasingly severe," said Viswanath Ramaswamy, Vice President of Technology at IBM India & South Asia. "To mitigate these risks, organizations must adopt a proactive, AI-driven approach to cybersecurity and prepare for the upcoming DPDP Act."

Key findings of the report:

• Rising costs: The overall cost of data breaches has surged due to increased business losses, including customer attrition and reputational damage.
• Phishing and stolen credentials remain the most common attack vectors.
• Cloud misconfigurations are a growing concern.
• Business email compromise is the costliest attack type.
• Data breaches affecting multiple environments are particularly expensive and time-consuming to resolve.
• Security AI and automation can significantly reduce breach costs and response times.

IBM emphasizes the need for a proactive and AI-powered cybersecurity strategy to combat the evolving threat landscape. As India prepares for the implementation of the Data Protection and Privacy Act (DPDP) in 2023, organizations must prioritize data security and compliance.