One of the main costs of a data breach is lost business, which includes revenue loss from business disruptions, system downtime, and customer attrition. According to the IBM Cost of a Data Breach 2023 report, the average cost of lost business due to a data breach is $1.3M. The high cost of data breaches also stems from regulatory fines. Data breaches can expose sensitive information and personal data, causing companies to inadvertently violate compliance regulations related to data protection, data privacy, and data residency.