The average cost of a data breach in Australia has soared to a record $4.26 million in 2024, according to IBM's annual Cost of a Data Breach report.
This figure represents a staggering 27 per cent increase since 2020, highlighting the growing financial impact of cybersecurity incidents on Australian organisations.
The technology sector bore the brunt of these costs, with average breaches reaching $5.81 million, closely followed by the financial services industry at $5.61 million.
Phishing and stolen credentials emerged as the most common initial attack vectors, accounting for 22 per cent and 17 per cent of breaches respectively.
However, malicious insider attacks proved the most costly, with an average price tag of $4.91 million per incident.
The report also revealed that Australian companies took an average of 266 days to identify and contain cyber incidents, slightly longer than the global average of 258 days.
Such an extended 'breach lifecycle' points to the ongoing challenge of swift threat detection and response.
On a positive note, the adoption of artificial intelligence (AI) and automation in cybersecurity is showing promising results.
Organisations using these technologies extensively saved an average of $1.74 million per breach and reduced their response time by 99 days compared to those not utilising such tools.
The industry is now reaching a tipping point for AI maturity with enterprise-grade capabilities to address many types of threats, IBM Security's Asia Pacific chief technology officer Christopher Hockings said.
Nick Flood, IBM Australia managing director, said the importance of global collaboration in cybersecurity should be emphasised, noting IBM's contribution through its Gold Coast Development Lab.
The report findings also show the potential for managed security services that can help address the severe staffing shortages faced by many organisations, which the report links to higher breach costs globally.
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