Discover the rising costs of data breaches in South Africa, with 2024 seeing an average expense of R53.1-million. Learn about the key attack vectors and the impact of AI on cybersecurity in the latest IBM report.
In 2024, South Africa has seen a significant rise in the financial impact of data breaches, with the average cost reaching R53.1-million, according to IBM’s latest annual Cost of a Data Breach Report. This year’s study highlights an alarming escalation in the financial toll of cyber incidents within the country.
The research identifies compromised or stolen credentials as the most frequent initial attack vectors, responsible for 17% of all breaches. These incidents resulted in an average cost of R56-million per breach. Phishing attacks, which contributed to 12% of the breaches, also had a high average cost of R56-million per attack. However, the most costly breaches were due to business email compromise, which made up 10% of the breaches and had an average cost of R63-million each.
IBM South Africa’s General Manager, Ria Pinto, emphasized the urgent need for enhanced cybersecurity measures. “South African organizations are facing a surge in cyber threats and data breaches, underscoring the necessity for robust cybersecurity defenses,” Pinto said. She added that the increasing complexity and frequency of these threats make it essential to deploy AI-driven security solutions to protect our digital infrastructure effectively.
The report also reveals a positive trend: 78% of local organizations are now using AI-enhanced cybersecurity tools in their security operations centers, a 10% increase from the previous year. Organizations that heavily integrated AI into their cybersecurity strategies experienced an average of R19-million less in breach costs compared to those that did not.
South Africa ranks 14th out of 16 countries in terms of breach costs, according to IBM’s report. The United States holds the highest average breach cost, at US$9.36-million, which is more than three times higher than in South Africa. Other regions examined in the report include the Middle East, Benelux (Belgium, the Netherlands, and Luxembourg), Canada, the UK, Japan, India, and Brazil.
On a global scale, the healthcare sector faced the highest average costs per breach, amounting to $9.8-million in 2024. This figure represents a decrease of 10.6% from the previous year. Following healthcare, the financial and industrial sectors incurred average breach costs of $6.1-million and $5.6-million, respectively.
IBM’s report also highlights a critical issue contributing to the rising costs of data breaches: security staffing shortages. More than half of the 604 organizations studied worldwide reported severe or high-level staffing shortages. Companies with inadequate security staffing faced breach costs that were between $3-million and $4-million higher than those with sufficient staffing levels.
Looking ahead, there is some relief in sight as organizations worldwide plan to boost their security budgets. According to IBM, 63% of organizations intend to increase their security spending this year, up from 51% last year. Investment priorities include enhancing employee training, improving incident-response planning, and upgrading threat detection and response technologies.
Stay informed about the latest trends in technology and cybersecurity. For more insights and updates, visit 365marktech.africa.
Explore more about the evolving landscape of cybersecurity and stay updated with the latest news and technology trends by visiting 365marktech.africa.
