India’s Average Data Breach Cost Reaches ₹25.5 Crore in 2026: IBM Report
• According to the IBM Cost of a Data Breach Report 2026, India has recorded its highest-ever average cost of a data breach at ₹25.5 crore, a 15.9% increase from ₹22 crore in
• The report highlights that organizations in India lost an average of 39,500 records per breach, up from 38,200 in the previous year. Notably, 26% of malicious breaches were AI-generated, reflecting the growing use of artificial intelligence by cybercriminals to launch sophisticated attacks. The financial services sector faced the highest breach costs, followed by the technology and communications sectors. The report also emphasized the importance of AI-driven security solutions, which have been shown to reduce breach costs and response times significantly.
Impact & Risks
The rising cost of data breaches poses significant financial risks to Indian organizations, particularly in the financial, technology, and communications sectors. Companies without AI and automation in their security operations face higher breach costs and slower response times, averaging 236 days to identify a breach. The report also highlights the risks of 'Shadow AI,' where unauthorized AI tools increase breach costs by ₹1.79 crore on average. These challenges underscore the need for robust cybersecurity measures to mitigate financial and reputational damage.
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