India’s average data breach cost rises to record ₹25.5 crore:Scammers use AI in cyberattacks

The average cost of a data breach in India reached an all-time high of ₹25.5 crore in 2026, marking a 15.9% increase from ₹22 crore in 2025. According to IBM’s 2026 Cost of a Data Breach Report, (as cited by news agency, ANI) cyberattacks have also grown in size, with an average of 39,500 records compromised per incident. Key Financial and Data Trends Average Cost per Breach: ₹25.5 crore (up from ₹22 crore in 2025) Average Data Records Stolen: 39,500 per breach (up from 38,200) Role of AI in Attacks: Artificial Intelligence was used to power 26% of malicious cyberattacks in India, making threats faster and harder to detect. How AI Defence Saves Companies Money: While hackers use AI to launch attacks, companies using AI for cybersecurity saved significant money when breaches occurred. Companies using advanced security AI saved over ₹10 crore per breach compared to those with no AI tools. However, only 32% of Indian organizations have extensively deployed security AI, while another 32% have not adopted it at all. Most Expensive Sectors for Data Breaches: Financial firms faced the largest financial hit from cyberattacks, followed closely by technology and telecom companies: Financial Services: ₹40.9 crore per breach Technology: ₹35.7 crore per breach Communications: ₹34.5 crore per breach Top Attack Vectors and Security Savings: Phishing (including phone call and SMS scams) was the most common entry point for hackers, causing 19% of breaches. Web-based drive-by attacks and supply chain compromises followed closely behind. On the defence side, proactive security testing—such as red teaming and penetration testing—was the single biggest cost saver, reducing breach expenses by an average of ₹2.47 crore. Future Security Investments: Gaurav Agarwal, Vice President of Technology at IBM India South Asia, emphasized that Indian businesses must move beyond basic detection and use AI across their entire security system—from spotting threats to fixing them automatically. In response to rising risks, nearly 73% of surveyed organizations plan to increase their cybersecurity budgets, focusing on incident response tools, threat detection, access management, and employee training.