Introduction
The growing sophistication of cyber threats and the increasing dependency on digital infrastructure have made incident response a vital aspect of organizations’ cybersecurity strategies. But, how much does it cost? We delve into the average cost of Incident Response activities in Europe and the United States, exploring the types of attacks that drive these costs and why.
The Price Tag: US vs. Europe
In the United States, the average cost of a data breach, a critical component of incident response costs, was $9.44 million in 2022. This represents a significant financial burden for businesses, particularly given the rising frequency and sophistication of cyber attacks.
On the other hand, obtaining specific data on the average cost of incident response in Europe proved challenging. However, the average cost of a data breach, a significant part of the incident response process, for the UK, a major player in Europe, reached a seven-year high of GBP 4.56 million in 2022.
What Drives These Costs?
Several types of attacks contribute to these costs. Phishing attacks, for instance, were the costliest initial attack vector in 2022, averaging GBP 4.43 million. Closely following was business email compromise, with an average cost of GBP 4.41 million.
Ransomware breaches, known for their significant impact, cost on average GBP 4.10 million, excluding the cost of the ransom itself. Notably, costs rose to an average of GBP 4.62 million for those that didn’t pay the ransom.
Supply chain compromises represented a significant proportion of breaches, accounting for 19% of all losses globally. The average total cost of a supply chain compromise was GBP 4.03 million, taking, on average, 26 days longer to identify and contain than the global average.
Conclusion
The cost of incident response is significant and varies greatly by region and attack type. It is evident that cybersecurity investments, particularly in incident response, are no longer optional but necessary for businesses to protect their assets and maintain their operations. With the global incident response services market expected to reach $72.7 billion by 2028, indicating a growing recognition of the importance of proactive cybersecurity measures, businesses should strive to stay one step ahead of the threats.
Please note that while we’ve managed to find comprehensive information for the U.S. and UK, obtaining data for the rest of Europe has proven to be challenging, and we recommend further research for a more complete picture.
Sources used:
- https://www.statista.com/statistics/463714/cost-data-breach-by-country-or-region/
- https://www.ajg.com/uk/news-and-insights/2022/october/the-rising-cost-of-a-data-breach/
- https://www.imarcgroup.com/incident-response-services-market
