IBM Report shows that Middle Eastern Consumers Pay the Price as Regional Data Breach Costs Reach All-Time High
Riyadh – 
:
IBM, the leading global technology company, has published a study highlighting the importance of cybersecurity in an increasingly digital age. According to IBM Security’s annual Cost of a Data Breach Report,[1] the Middle East has incurred losses of SAR 28 million from data breaches in 2022 alone — this figure already exceeding the total amount of losses accrued in each of the last eight years.
The latest edition of the Cost of a Data Breach Report — now in its 17th year — reveals costlier and higher-impact data breaches than ever before. As outlined by the study, the global average cost of a data breach has reached an all-time high of $4.35 million for surveyed organizations. With breach costs increasing nearly 13% over the last two years of the report, the findings suggest these incidents may also be contributing to rising costs of goods and services. In fact, 60% of studied organizations raised their product or services prices due to the breach, when the cost of goods is already soaring worldwide amid inflation and supply chain issues.
Notably, the report ranks the Middle East2 among the top five countries and regions for the highest average cost of a data breach. As per the study, the average total cost of a data breach in the Middle East amounted to SAR 28 million in 2022, the region being second only to the United States on the list. The report also spotlights the industries across the Middle East that have suffered the highest per-record costs in millions; the financial (SAR 1,039), health (SAR 991) and energy (SAR 950) sectors taking first, second and third spot, respectively.
Fahad Alanazi, IBM Saudi General Manager, said: “Today, more so than ever, in an increasingly connected and digital age, cybersecurity is of the utmost importance. It is essential to safeguard businesses and privacy. As the digital economy continues to evolve, enhanced security will be the marker of a modern, world class digital ecosystem.”
He continued: “At IBM, we take great pride in enabling the people, businesses and communities we serve to fulfil their potential by empowering them with state-of-the-art services and support. Our findings reiterate just how important it is for us, as a technology leader, to continue pioneering solutions that will help the Kingdom distinguish itself as the tech capital of the region.”
The perpetuality of cyberattacks is also shedding light on the “haunting effect” data breaches are having on businesses, with the IBM report finding 83% of studied organizations have experienced more than one data breach in their lifetime. Another factor rising over time is the after-effects of breaches on these organizations, which linger long after they occur, as nearly 50% of breach costs are incurred more than a year after the breach.
The 2022 Cost of a Data Breach Report is based on in-depth analysis of real-world data breaches experienced by 550 organizations globally between March 2021 and March 2022. The research, which was sponsored and analyzed by IBM Security, was conducted by the Ponemon Institute.
[1] Cost of a Data Breach Report 2022, conducted by Ponemon Institute, sponsored and analyzed by IBM.
