Report by BakerHostetler
2026 Data Security Incident Response Report
Key Findings
Completing forensic investigations faster reduced time to notification by three days.
Class-action lawsuits were filed in 14% of data security incidents, up from 9% the previous year.
For network intrusions, unpatched vulnerabilities were the root cause 21% of the time.
Health care was the most affected sector by data security incidents, accounting for 27% of incidents; finance and insurance accounted for 18%; business and professional services accounted for 15%.
For network intrusions, the root cause was not found 34% of the time.
The cost of the largest investigations increased by more than 10% in 2025 compared with the previous year.
Ransomware negotiation discounts of 50%–75% often take 20–60 days of negotiations.
Vendors were the cause of 25% of data security incidents analyzed.
The average initial ransomware demand increased 70% to $4.2 million compared to the previous year.
In 2025, lawsuits were filed in 68 of 482 disclosed data security incidents, up from 51 of 518 in 2024.
Phishing was the leading cause of data security incidents, accounting for 30%.
The average ransomware payment increased 36% to $682,702 compared to the previous year.