The Rising Costs of Data Breach Investigations and How to Reduce Them

The fear of a data breach is a major concern for companies of all sizes in today’s threat landscape. Not only does it pose a significant risk to sensitive information, but it also comes with a hefty price tag. IBM’s Cost of a Data Breach Report for 2023 reveals that the average cost of a data breach has reached an all-time high of $4.45 million.

While the media often focuses on the overall cost of data breaches, little attention is given to the increasingly expensive incident investigations that drive up these costs year after year. In this article, we will delve deeper into the reasons behind the rising costs of data breach investigations and provide practical steps that businesses can take to reduce these expenses.

Data Breach Investigation Costs

Investigating a data breach involves a combination of resource-intensive activities, including technical analysis, administrative tasks, legal procedures, and communication efforts. The 2022 IBM report highlighted that incident investigations, also known as ‘detection and escalation,’ have become the most expensive category of data breach expenses. This trend continues in the 2023 report, revealing that detection and escalation costs an average of $1.58 million per breach, accounting for over 35 percent of the total average cost.

But why are data breach investigation costs on the rise? Here are some factors that contribute to the increased expenses:

1. Complex IT Environments: Many companies operate in hybrid environments, with data spread across on-premises servers, multiple cloud providers, and even edge devices. This complexity makes it challenging to track sensitive data, monitor its use, and identify anomalies.
2. Advanced Persistent Threats (APTs): Adversaries use sophisticated techniques and evasive malware to remain undetected for longer periods, increasing the time and costs associated with detection and response.
3. Volume of Data: The amount of data generated and stored by companies continues to surge in a data-driven economy. Sorting through this massive amount of data to detect breaches requires specialized tools and expertise.
4. Breach Escalation Shortfalls: Incident response plans often fall short when it comes to escalating data breaches internally. Inefficient processes can disrupt normal business operations, and the lack of coordination across different departments hinders effective breach management.

What Were the Consequences of the Kroll Data Breach on FTX, BlockFi, and Genesis Creditors?

The ftx, blockfi, genesis creditors’ data breach had severe consequences for the affected parties. Their sensitive information was compromised, endangering their financial security. The breach not only resulted in potential losses for the victims but also damaged the reputation and trustworthiness of these prominent organizations. As a result, they may face legal actions, financial penalties, and loss of customers, which could negatively impact their future operations in the cryptocurrency industry.

How to Reduce the Cost of Investigating Data Breaches

Reducing the cost of data breach investigations requires a proactive and reactive approach. Here are some suggestions to prevent data breaches and mitigate investigation costs:

1. Robust Information Governance

Implementing a robust information governance framework is essential for efficient data management. It involves defining and enforcing policies, procedures, standards, and controls to ensure data is handled securely and in compliance with legal and regulatory obligations. Maintaining an inventory of information assets and regularly deleting unnecessary data can help uncover protection gaps and reduce breach risks due to lax practices.

2. Ongoing Security Training and Awareness

Regularly educate employees on the importance of security and how to recognize and avoid potential threats, such as phishing attempts. By fostering a security-conscious workforce, you can significantly reduce the risks associated with human factors in data breaches. Make security training and awareness a continuous effort throughout the year to reinforce best practices.

3. Continuous Vulnerability Management

Adopt a proactive approach to identifying, assessing, and addressing vulnerabilities in your IT infrastructure. Regularly scan for known vulnerabilities and apply patches and updates promptly. By prioritizing vulnerability management, you can prevent data breaches resulting from outdated and vulnerable systems.

4. Simulated Cyberattacks

Conduct simulated cyberattacks to uncover weaknesses in your infrastructure and systems. Identifying and addressing these vulnerabilities proactively is more cost-effective than dealing with the aftermath of a real data breach. Simulated attacks provide valuable insights and help improve your overall security posture.

5. Using Cyber Threat Intelligence (CTI) for Faster Response

Leverage actionable and reliable cyber threat intelligence to enhance your forensic and investigative activities. Good CTI enables faster detection and response to breaches, reducing investigation costs. However, gathering and analyzing CTI can be time-consuming. Consider utilizing modular CTI solutions, such as Outpost24’s Threat Compass, which provides customer-specific threat information tailored to your business needs.

By implementing these proactive measures, businesses can reduce the costs associated with investigating data breaches and improve overall cybersecurity resilience. Taking a comprehensive approach to data breach prevention and response is crucial in today’s evolving threat landscape.

This article is sponsored and written by Outpost24.