The global average cost of a data breach soared to nearly $4.9 million in 2024, marking a 10% increase compared to the previous year, according to a report by IBM.
In late October, UnitedHealth disclosed that a significant cyberattack on its Change Healthcare subsidiary earlier in 2024 might have exposed the data of 100 million individuals. This incident is regarded as the largest healthcare data breach ever reported to federal regulators, as first reported by Healthcare Dive.
Earlier that month, the company revealed the breach had led to a financial impact of $2.5 billion over the nine months ending September 30, including $1.7 billion in direct response costs. Additionally, the business disruption caused by the attack was estimated at $705 million.
“We continue to work with customers to bring transaction volumes back to pre-event levels and to win new business with our now more modern, secure, and capable offerings,” UnitedHealth CFO John Rex stated during an earnings call. “We expect to continue to build back the business to pre-attack levels over the course of ’25 and estimate next year’s full year impact will be roughly half of the ’24 level.”
Other major companies like AT&T, Live Nation Entertainment (the owner of Ticketmaster), and Dell also reported significant data breaches in 2024.
Chubb's research highlighted that 40% of executives identified cyber breaches and data leaks as the most disruptive and financially challenging man-made threats.
The study also found that 86% of businesses either have or plan to implement business interruption coverage for risks such as cyberattacks, natural disasters, or supply chain disruptions. Of these, 53% already have coverage, while another third intend to add it within the next year.
Monitoring cyber incidents has become the most widely used tool for mitigating risks.
“Corporate leaders must take a holistic approach to simultaneously mitigate both new and old business risks effectively,” the report emphasized. “They must also develop the ability to monitor and mitigate all these risks around the clock to ensure they are effectively protected.”
The findings are based on a survey of 517 executives from various industries across the U.S. and Canada.