IBM’s 2024 Cost of a Data Breach Report highlighted this week that Canadian organizations face an average cost of more than $6 million per data breach, much higher than the global average of less than $5 million, as “breaches grow more disruptive and further expand demands on cyber teams.”
It’s even worse for fintechs.
In Canada, the financial sector was found to pay on average more than $9M per breach, IBM’s report shows, while the technology sector is paying nearly $8M on average.
The report goes on to highlight the importance of Artificial Intelligence in fintech and cybersecurity. IBM’s findings suggest that a majority of Canadian companies are now deploying security AI and automation to prevent and combat breaches—and that a reduction in breach costs has been shown.
According to the report, organizations with “extensive use of AI and automation in their security operations” had breach lifecycles 54 days shorter and costing $2.8 million less on average compared to companies not using such technologies.
“The findings of this report underscore the business imperative for companies to integrate AI and automation into their cybersecurity programs to reduce both the financial impact and business disruption of cyber breaches,” stated Daina Proctor, IBM Canada Security Service Line Delivery Leader. “Canadian organizations that invest in AI and automation will be better equipped to detect and recover from breaches, reducing the significant costs associated with these events.”
Considering that most fintechs are already AI companies to some degree these days, it appears wise to apply some of that intelligence and autonomy to cybersecurity, where various types of fraud remain frequent and thus a concern among Canadians.
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