Report: Average cost of data breaches rose 12% this year

From March 2025 through February 2026, the average cost of a data breach rose 12% over the immediately previous 12-month period, reaching a record $4.99 million, according to a new report from IBM.

The average cost in the U.S., where regulatory fines and business costs are higher, rose 13% to $11.5 million.

Companies had actually seen a slight decrease in average breach costs in the prior 12 months but gave up all of that gain and more in the period ending earlier this year.

While companies are improving their usage of artificial intelligence for many use cases, in the data security space, cyber-attackers are apparently using it more effectively.

According to the research, more than one in four organizations that experienced a malicious attack reported that it was AI-driven, up a startling 56% since last year’s IBM report. See more findings.