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What Does a Data Breach Really Cost?

26/06/2019

Updated 10th October 2025

Data breaches are expensive. How about a breach that takes nine months to uncover? IBM’s Cost of a Data Breach shows that supply chain compromises are draining resources and trust, making them one of the most dangerous and costly threats facing organizations today.

While the global average cost of a breach has dipped slightly to $4.44 million (returning to 2023 levels), the story beneath the surface is far more nuanced. In the United States, breach costs surged to $10.22 million, increasing 9% as a result of escalating regulatory fines and detection costs.

But perhaps the most sobering insight from the 2025 report is this: supply chain compromise is now the second most costly breach type, taking an average of 267 days to detect and contain. In a world built on interconnected systems and vendor relationships, this statistic should prompt immediate review and action.

Key Findings from the 2025 IBM's Cost of Data Breach Report

  • Global average breach cost: down to $4.44M.
  • US breach cost: up to $10.22M due to regulatory fines and detection costs.
  • Shadow AI: 20% of breaches, now a top 3 cost driver.
  • Supply chain compromise: second most costly breach type.
  • Detection time: supply chain breaches take 267 days to detect and contain.

The Hidden Risk in Trusted Relationships

IBM’s report highlights a critical vulnerability:

“Supply chain attacks are hard to detect because they exploit trust between vendor-and-customer and computer-to-computer communications.”

This trust, while essential for operational efficiency, can become a liability when vendors lack robust security protocols. The long detection window means attackers can operate undetected for months, often with access to sensitive data across multiple systems.

One of the most overlooked blind spots in vendor relationships is end-of-life IT equipment. When devices leave active service, they often pass through multiple hands, from internal teams, third-party logistics providers, recyclers, or ITAD vendors. Without strict chain-of-custody controls, standardized processes, and verified data sanitization, these assets can become a backdoor for data exposure or compliance failure.

Even well-intentioned suppliers may fall short if they lack the certifications, infrastructure, or accountability to manage retired technology securely. And because these assets are no longer part of day-to-day operations, they’re often excluded from security audits, making them a prime target for exploitation.

Add to this the rise of shadow AI, responsible for 20% of breaches in the report, and it’s clear that organizations must rethink how they manage risk across their technology lifecycle.

 

 

Shadow AI: The Emerging Threat You Can’t See

Another standout finding from IBM’s 2025 report is the rise of shadow AI, the unmonitored or unauthorized artificial intelligence systems operating within organizations. These accounted for 20% of breaches, making it one of the top three most costly breach factors. “Just one unmonitored AI system can lead to widespread exposure,” the report warns.

Shadow AI often emerges when teams deploy models or tools outside of approved IT channels, bypassing governance and security protocols. These systems may interact with sensitive data, generate outputs that are shared externally, or integrate with other platforms, all without oversight.

While not directly tied to supply chain compromise, shadow AI amplifies the risk landscape by introducing unknown variables into already complex environments. It underscores the need for visibility, governance, and accountability across all layers of technology, including those managed by third parties.

SK Tes: A Trusted Partner in a Risk-Heavy Landscape

At SK Tes, we understand that trust must be earned and backed by evidence. Our IT Asset Disposition (ITAD) and technology lifecycle services are built on a foundation of standardized processes, global security protocols, independent certification, and strict chain-of-custody controls.

Here’s how we help organizations mitigate supply chain risk:

  • End-to-End Asset Tracking: Every asset is logged, monitored, and verified throughout its lifecycle.
  • Secure Chain of Custody: From collection to final disposition, we maintain full accountability and transparency.
  • Industry Certifications: Our services are validated by third-party certifications that demonstrate compliance, security, and environmental responsibility.
  • Global Standards, Local Execution: We operate with consistency across regions, ensuring that your data and assets are protected no matter where they are.

Whether you're retiring legacy hardware, refreshing infrastructure, or managing remote device returns, SK Tes ensures that every step is secure, auditable, and aligned with your compliance obligations.

Why It Matters Now More Than Ever

As supply chain breaches become more sophisticated and costly, organizations must prioritize vendor integrity and process transparency. The 2025 IBM report makes it clear: the weakest link in your supply chain can become the most expensive mistake.

By partnering with SK Tes, you gain more than a service provider - you gain a resilient, reputable ally in your cybersecurity and compliance strategy.

 

Contact SK Tes to learn how secure lifecycle services can strengthen your supply chain

 

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