A recent study conducted by Hiscox has unveiled a concerning trend of increasing cyber attacks on businesses, marking the fourth consecutive year of growth in such incidents.
The report, titled the “Hiscox Cyber Readiness Report,” draws from insights provided by over 5,000 organisations worldwide, representing a variety of sizes and industries.
The report has unveiled a set of compelling findings. Notably, over 53% of surveyed businesses have disclosed experiencing at least one cyber attack in the past year, marking a significant 5-point increase from the previous year.
Small businesses, particularly those with fewer than ten employees, have faced an alarming surge in cyberattacks, surging from 23% to 36% over the past three years, indicating a deliberate targeting of vulnerabilities within smaller IT infrastructures.
Furthermore, the report highlights a lack of confidence among smaller businesses (less than 250 employees) in handling such attacks, with only 61% feeling adequately prepared, compared to 71% of larger counterparts.
Ransom payments persist as a common response to these threats, with 63% of affected businesses willing to pay to protect their assets, albeit with a slight reduction in the median cost of attacks from $17,000 to slightly over $16,000.
The report underscores the severity of cyber risks, with 21% of attacked firms reporting that these threats posed a significant risk to their business viability.
Additionally, the preferred weapon of choice for hackers, Business Email Compromise (BEC), continues to plague businesses, with one in three companies experiencing payment diversion fraud (PDF) due to cyber attacks, the report noted.
In response to this mounting challenge, companies have significantly bolstered their cybersecurity investments, with a 39% increase over the past three years, reaching a median of $155,000.
Smaller businesses have quadrupled their cybersecurity spending over the last two years, reaching a median of $8,100.
Eddie Lamb, the Global Director of Cyber Education and Advisory at Hiscox, emphasised that cyber risk has become a standard business concern.
He commended businesses for investing more in cybersecurity but warned that staying ahead of hackers who continually innovate tactics like business email compromise is challenging.
“…it’s so important that businesses consistently update and manage their defences to stay one step ahead of the cyber criminals, which is something we spend a lot of time supporting our clients with,” he added.
