Cost of a Data Breach Report 2022 Contents 2 03 Executive summary 47 Security recommendations 04 What’s new in the 2022 report 05 Key findings 49 Organization demographics 08 Complete findings 50 Geographic demographics 51 Industry demographics 09 Global highlights 52 Industry definitions 14 Data breach lifecycle 17 Initial attack vectors 19 Key cost factors 53 Research methodology 22 Security AI and automation 54 How we calculate the cost of a data breach 25 XDR technologies 55 Data breach FAQ 27 Incident response 56 Research limitations 29 Risk quantification 30 Zero trust 32 Ransomware and destructive attacks 57 About Ponemon Institute and IBM Security 34 Supply chain attacks 58 Take the next steps 36 Critical infrastructure 39 Cloud breaches and cloud model 44 Remote work 45 Skills gap 46 Mega breaches Executive summary The Cost of a Data Breach Report offers IT, risk management and security leaders a lens into factors that can increase or help mitigate the rising cost of data breaches. Now in its 17th year, this research — conducted independently by Ponemon Institute, and sponsored, analyzed and published by IBM Security® — studied 550 organizations impacted by data breaches that occurred between March 2021 and March 2022. The breaches occurred across 17 countries and regions and in 17 different industries. We conducted more than 3,600 interviews with individuals from organizations that were impacted by the data breaches. During the interviews, we asked questions to determine the cost to organizations across different activities related directly to both the immediate and prolonged response to the data breaches. As in previous years’ reports, this year’s data provides a view of how dozens of factors impact the costs that keep adding up after a data breach occurs. Additionally, the report examines root causes, short-term and long-term consequences of data breaches, and the mitigating factors and technologies that allowed companies to limit losses. 3 Significantly, for the first time, the research shows the following insights: 83% of organizations studied have had more than one data breach. 60% of organizations’ breaches led to increases in prices passed on to customers. 79% of critical infrastructure organizations didn’t deploy a zero trust architecture. 19% of breaches occurred because of a compromise at a business partner. 45% of the breaches were cloud-based. 4 What’s new in the 2022 report With each year’s edition, we aim to build upon past research to keep up with changing technology and events. We also try to form a more relevant picture of the risks and strategies for securing data and responding to a breach, from artificial intelligence (AI) to zero trust. Covering some of the technologies most companies focused on in the past year, the 2022 edition of this report has new analysis related to the value of the following: – Extended detection and response (XDR) – The use of risk quantification techniques – Impacts of individual technologies that contribute to a zero trust security framework, such as identity and access management (IAM) and multifactor authentication (MFA) Furthermore, the report takes a broader look at some leading contributors to higher data breach costs. For the first time, the report looks at the effects of supply chain compromises and the security skills gap. The report examines areas of security vulnerability from the cloud to critical infrastructure. And we take a deeper dive than past years into the impacts of ransomware and destructive attacks. Also studied is the phenomenon of remote work that continues to be a reality for many organizations past the peak of the COVID pandemic. As companies experience more breaches and costs continue to climb, this report can serve as a tool to help your teams better manage risk and limit potential losses. The report is divided into the following five major sections: – The executive summary with key findings and what’s new in the 2022 edition – In-depth analysis on the complete findings, including breach costs by geographic region and industry – Security recommendations from IBM Security experts based on this report’s results – Demographics of organizations and industry definitions – The study’s methodology, including how costs were calculated IBM Security and Ponemon Institute are pleased to present the results of the 2022 Cost of a Data Breach Report. Key findin