This is how much data breaches cost mortgage banks this year
Companies spent even more money on
Financial firms spent an average of $6.08 million on incident response, compared to $5.9 million last year, according to IBM’s
The analysis provides information about the costs
Loandepot in a recent disclosure
IBM found that “mega data leaks,” which affected between one and ten million records, cost an average of $42 million, while hacker attacks affecting between ten and 20 million records cost companies an average of $173 million.
The cost of data breaches is high. The average cost of a cyberattack on a U.S. company last year was $9.36 million, while the cost for all affected companies worldwide averaged $4.88 million—an annual increase of 10 percent.
63% of affected companies surveyed said they pass the costs of data breaches on to consumers. Last year, 57% of respondents did so.
“Customers’ ability to absorb these costs can be problematic in a competitive market already under price pressure from inflation,” the IBM report said.
Mitigating factors
Across all hacking attacks, the price of sensitive data has increased, with employee and consumer personal identification data costing $189 and $179 per record, respectively, last year. The average total cost increased due to higher business losses, such as downtime and lost customers, as well as more expensive post-attack measures, such as more staff and fines, IBM said.
Affected companies that use artificial intelligence in security functions spent an average of $2.2 million less than their competitors
Companies that did not report “severe security staffing shortages” meanwhile saved an average of $1.76 million in breach response, with that security skills gap growing by double digits from 2022 to 2023, IBM said.
Companies that contacted law enforcement about hacks saved an average of $1 million compared to organizations that did not. Just over half of the companies affected by ransomware attacks told IBM that they notified law enforcement, and 63% of those companies ended up paying the cybercriminals no money.
The report cites employee training and insights from AI and machine learning as the top factors that reduce the average cost of data breaches. A complicated security system is the biggest cost factor, the report says, followed by security staff shortages and third-party incidents.
Remaining expenses
Only 12 percent of companies reported fully recovering from cyberattacks, a process that typically takes more than 100 days, according to IBM. Full recovery is defined as returning business operations in affected areas to normal, meeting compliance requirements, implementing new controls and restoring customer and employee trust.
Loandepot has not yet formally settled a pending complaint over a data breach, but said in its recent earnings releases that the hack, which affected nearly 17 million borrowers, will not have a material impact on its full-year financial results.
Mr. Cooper, which was the victim of an attack last October that leaked the social security numbers of 14.7 million customers, has
While some companies
A federal judge in June granted preliminary approval for a $6 million settlement between consumers and Overby-Seawell, a supplier to KeyBank and Fulton Bank.