India’s data breach costs surge to $2.18 million in 2023

The average cost of data breaches in India reached $2.18 million in 2023, marking a 28 per cent increase since 2020, according to the Reserve Bank of India’s (RBI) Currency and Finance report for 2023-24.

The report further said that India’s average data breach cost was still below the global average. The most common attacks in India are phishing which is at 22 per cent and stolen or compromised credentials at 16 per cent.

“In India, the average cost of data breaches stands at US$ 2.18 million in 2023, a 28 per cent increase since 2020 albeit less than the global average cost of data breach,” the report said.

Globally, cybercrime costs are projected to reach $13.82 trillion by 2028, up from $8.15 trillion in 2023.

The average cost of a data breach has also risen to $4.45 million in 2023, representing a 15 per cent increase over three years.

Recognising these significant costs, most central banks have increased their cybersecurity investment budgets by 5 per cent since 2020.

“Globally, cybercrime costs are expected to reach US$ 13.82 trillion by 2028, up from US$ 8.15 trillion in 2023. The average cost of a data breach has also risen to US$ 4.45 million in 2023, a 15 per cent increase over three years. Recognising the significant costs involved, most central banks have increased their cyber security investment budgets by five per cent since 2020,” the report said.

The report highlighted that India is at the forefront of the global digital revolution, with digital technologies unlocking significant opportunities in financial inclusion and fiscal transfers. However, it also warns of the challenges posed by these technologies, including cybersecurity issues, data privacy concerns, and risks associated with vendors and third parties. Business Standard