Despite significant investment in advanced security systems over the past year, a large company reported a 20% increase in data breaches compared to the previous year.

The correct answer to the question "Despite significant investment in advanced security systems over the past year, a large company reported a 20% increase in data breaches compared to the previous year." is Option D: The company's data processing volume increased by 30% over the past year, leading to more potential points of vulnerability..

The other options — A) The advanced security systems implemented were primarily designed to prevent physical theft, not data breaches., B) Employee training on cybersecurity best practices was reduced during the same period to cut costs., C) Competitors of the company experienced an even greater increase in data breaches during the same period. — are incorrect for this GMAT Exam Prep question. As explained above: If the company's data volume significantly increased, the absolute number of breaches could rise even if the *rate* of breaches (breaches per unit of data) decreased or remained stable, thus explaini…