The Middle East witnesses a substantial surge in breach costs, hitting an unprecedented $8 million, marking the highest figure recorded in the past decade
In 2023, organizations in the Middle East faced a record-high total cost of data breaches, reaching $8 million (SAR 29.9 million), according to the Cost of a Data Breach Report.
This marks a 15 percent increase over the past three years and a substantial 155.9 percent rise over the last decade. These figures highlight the growing importance of advanced security solutions in the interconnected world we live in.
Within the Middle East, several factors contribute to the expenses associated with data breaches for organizations. The highest cost was attributed to lost business, totaling SAR 10.02 million, followed by post-breach responses at SAR 8.86 million, detection and escalation costs at SAR 8.36 million, and notifying relevant stakeholders at SAR 2.36 million.
In terms of sectors, the financial sector incurred the highest data breach costs, reaching SAR 35.29 million, followed by the energy industry at SAR 33.75 million, and the healthcare sector at SAR 32.46 million.
In a world undergoing digital transformation, IBM’s report highlights the security challenges Middle Eastern organizations face. Notably, AI and automation played a crucial role in breach identification and containment. Organizations that extensively employed these technologies experienced shorter data breach lifecycles, averaging 259 days, compared to 393 days for those that didn’t embrace them. Moreover, the report reveals that extensive use of security AI and automation led to an average reduction of SAR 12.22 million in data breach costs.
Key technologies leaders stressed the need for early detection and rapid response to mitigate data breach damage, emphasizing the importance of investments in advanced threat
Cxo Leaders acknowledged the evolving challenges in the global economic landscape and commitment to finding solutions that protect businesses and communities.
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The 2023 Cost of Data Breach Report is based on a comprehensive analysis of real-world data breaches experienced by 553 organizations globally, including 36 in Saudi Arabia and the UAE, between March 2022 and March 2023
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This research, sponsored and analyzed by IBM Security, was conducted by the Ponemon Institute and has been published for 18 consecutive years.
The report also highlighted that phishing accounted for the majority of data breaches in the region (16 percent), costing businesses SAR 32.2 million. Unknown (zero-day) vulnerabilities and attacks through stolen or compromised credentials constituted 15 percent and 13 percent of breaches, respectively.
Additionally, over 37 percent of data breaches led to data loss across multiple environments, indicating attackers’ ability to compromise multiple areas without detection, resulting in higher costs averaging SAR 33.20 million. To mitigate these costs, the report recommends deploying AI and machine learning-driven insights and attack surface management (ASM) tools, potentially reducing expenses by SAR 1.13 million and SAR 1.08 million, respectively.
The 2023 Cost of Data Breach Report is based on a comprehensive analysis of real-world data breaches experienced by 553 organizations globally, including 36 in Saudi Arabia and the UAE, between March 2022 and March 2023. This research, sponsored and analyzed by IBM Security, was conducted by the Ponemon Institute and has been published for 18 consecutive years.
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