Data breach costs in India surge 20% to $2.18mn in 2023

India’s data breach cost remains below global average

MUMBAI: According to the Reserve Bank of India’s (RBI) Currency and Finance report for 2023-24, the average cost of data breaches in India reached $2.18 million in 2023, marking a 28 per cent increase since 2020. Despite this rise, India’s average data breach cost remains below the global average. The most common types of attacks in India are phishing, accounting for 22 per cent of breaches, and stolen or compromised credentials, representing 16%.

The report notes: “In India, the average cost of data breaches stands at $2.18 million in 2023, reflecting a 28 per cent increase since 2020. However, this is still less than the global average cost of a data breach.”

Globally, cybercrime costs are projected to surge to $13.82 trillion by 2028, up from $8.15 trillion in 2023. The average cost of a data breach has risen to $4.45 million in 2023, a 15 per cent increase over the past three years. In response to these escalating costs, most central banks have increased their cybersecurity investment budgets by 5% since 2020.

The report emphasizes that while India is a leader in the global digital revolution, offering significant opportunities for financial inclusion and fiscal transfers, it also faces challenges. These include cybersecurity issues, data privacy concerns, and risks related to vendors and third parties.