24/Apr/2019
According to a new report from Hiscox, the insurers, the number of cyber attacks against businesses increased significantly in 2018, with more than 60% of companies reporting at least one attack.
According to Hiscox’s cyber readiness report 2019, around 61% of businesses reported one or more cyber attack in 2018, up from 45% in 2017. The recent upsurge in cyber crime included several high profile incidents, including breaches at British Airways and Dixons Carphone.
However, despite the sharp increase in attacks, the number of firms making preparations against them has actually declined over the past year, according to the figures. Nearly three quarters (74%) of businesses were considered unprepared for a cyber attack, after failing a cyber readiness test.
The size of losses related to attacks also sharply increased, with the average loss reported at 369,000 US dollars (£283,000), up 61% on the previous year. German firms reported the largest overall losses, as one company reported $48 million in losses from data breaches.
The new report surveyed 5,400 firms in the US, UK, Belgium, France, Germany, Spain and the Netherlands to assess cyber security. And, while large firms remain the most likely targets, the number of small and medium sized businesses affected by cyber crime also increased last year. Around 47% of small firms, those with fewer than 50 employees, reported attacks, up from 33% last year.
The proportion of medium-sized businesses, (those with 50 to 249 employees), targeted also soared, rising to 63% from 36% the previous year.
Companies increased their expenditure on cyber security last year by 24%, to US$1.45 million (£1.1 million) on average, while the number taking out insurance against attacks also rose.
Gareth Wharton, Hiscox Cyber CEO, commented: “Where hackers formerly focused on larger companies, small and medium-sized firms now look equally vulnerable. The cyber threat has become the unavoidable cost of doing business today.
“The one positive is that we see more firms taking a structured approach to the problem, with a defined role for managing cyber strategy and an increased readiness to transfer the risk to an insurer by way of a standalone cyber insurance policy.”
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