IBM cybersecurity report has supply chains chiefs on alert

The cost of data breaches has reached an all time high - an average of US$4.45m - according to annual research published by IBM, putting supply chain chiefs on alert.

Hackers often target supply chain vendors as a means of gaining access into a larger company – the so-called back-door cyber attacks.

In the event that a supplier or third party is subject to a cyberattack that means they are unable to deliver key products or services, this can become a big problem very quickly and may impact business continuity.

Internally, the biggest cyber threats come from suppliers or other third parties who have access to an organisation's IT networks. Externally, the biggest threat is from third-party organisations who perform a critical business process or deliver a key product to the first party.

These vulnerabilities are reflected in the IBM report, which shows the cost of data breaches is up on last year.

While 95% of those surveyed said they have experienced more than one data breach, only 51% said they plan to increase their security investments.

Global victims of ransomware attacks that chose not to involve law enforcement faced US$470,000 in extra costs, according to the report.

According to the study, organisations that deployed security AI and automation extensively throughout security operations and within several different toolsets and capabilities – paid significantly less in data breach costs than organisations that did not use these technologies.

“With a 108-day average reduction in the breach lifecycle, security AI and automation may be the driving force needed to help defenders bridge the speed gap with attackers,” Martin Borrett, Technical Director of IBM Security UK & Ireland, said.

As previously reported by our sister magazine Cyber Magazine, organisations may have already experienced a cyber breach without their knowledge.

Vectra AI recently suggested that 71% of organisations may have experienced a data or cyber breach and not know about it, with a report stating that security technologies need to be updated.

The IBM report also found that stolen or compromised credentials was the most common entry point for cyber attackers at 13%.

Malicious insiders were the most expensive initial attack vector (£3.9 million/US$5m), followed by business email compromise (£3.86 million/US$4.95m) and phishing (£3.85 million/US$4.94).

Globally, phishing attacks alone have risen by 464% since 2022 which stresses the urgency of combatting increased cyber attacks.

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