Attacks On Business Are Intensifying

A sharp increase in the number and cost of cyber-attacks is the key finding in a study of more than 5,400 organisations across seven countries, commissioned by insurer Hiscox. More than three out of five firms (61%) report one or more attacks in the past year, yet the proportion achieving top scores for their cyber security readiness is marginally down year-on-year.
 
Belgium reported the most attacks with 71% of commerce reporting an attack, with more than 30% of business being attacked four or more times. However, 16% of Belgium’s larger businesses have very high level cyber security experts and this puts them in the best position for attaining cyber-security.
 
The Hiscox Cyber Readiness Report 2019 surveyed a representative sample of private and public sector organisations in the US, UK, Belgium, France, Germany, Spain and the Netherlands. 
 
Each firm was assessed on its cyber security strategy and execution, and ranked accordingly. Only 10% achieved high enough marks in both areas to qualify as cyber security ‘experts’.
 
Among the key findings:
 
• Cyber-attacks reach a new intensity: More than three in every five firms (61%) experienced a cyber incident in the past year, up from 45% in the 2018 report. The frequency of attacks also increased. Belgian firms were the most heavily targeted. 
 
• More small and medium-sized firms attacked this year: While larger firms are still the most likely to suffer a cyber-attack, the proportion of small firms (defined as those with less than 50 employees) reporting an incident is up from 33% to 47%. Among medium-sized firms (50 to 249 employees) the proportion has leapt from 36% to 63%.
 
• Cyber losses soar: Among firms reporting attacks, average losses associated with all cyber incidents have risen from $229,000 last year to $369,000 – an increase of 61%. For large firms with between 250 and 999 employees cyber-related losses now top $700,000 on average compared with $162,000 a year ago. German firms suffered the most, with one reporting a cost for all incidents of $48 million.
 
• More firms fail cyber readiness test: Using a quantitative model to assess firms for their cyber readiness, only one in ten (10%) achieved ‘expert’ status this year, slightly down from 11% in 2018. Nearly three-quarters (74%) ranked as unprepared ‘novices’. There was a sharp drop in the number of larger US and German firms achieving ‘expert’ scores.
 
• Cyber security spending up by a quarter: The average spend on cyber security is now $1.45 million, up 24% on 2018, and the pace of spending is accelerating. The total spend by the 5,400 firms in the survey comes to $7.9 billion. Two-thirds of respondents (67%) plan to increase their cyber security budgets by 5% or more in the year ahead.
 
UK business, even ones that say they are not really secure against attacks, are reporting a significant increase in cyber breaches, according to Hiscox. 
 
Hiscox say that 55% of business have been attacked in 2019, which is a 15% increase in one year. But almost three quarters of firms were ranked as "novices" in terms of cyber readiness. Hiscox said a lot of businesses "incorrectly felt that they weren't at risk".
 
It said there had been a "sharp increase" in the number of cyber-attacks this year, with more than 60% of firms having reported one or more attacks - up from 45% in 2018. Average losses from breaches also soared from $229,000 (£176,000) to $369,000, an increase of 61%. Despite this, the insurer said the percentage of firms scoring top marks on cyber security had fallen, with UK organisations doing particularly badly.
 
British firms had the lowest cyber security budgets, it said, spending less than $900,000 on average compared with $1.46m across the group.
 
They were also joint-least likely with US firms to have a "defined role for cyber security" on their staff. In France the proportion was closer to one in ten. Gareth Wharton, head of Cyber at Hiscox, said the low UK spending could be driven by the large number of small businesses in Britain. 
 
"They may feel like they won't be targeted, as we tend to only read about large breaches in the press. If they incorrectly feel that they won't be targeted, they may be less likely to spend on cyber security."
 
Hiscox also found the average cost of an attack in the UK was lower than average at $243,000, compared with $906,000 in Germany and $486,000 in Belgium. New regulation has also prompted action, with eight in ten UK firms saying they had made changes since the introduction of tough new EU data protection rules last year.
 
  BBC:          Hiscox:        Hiscox
 
You Might Also Read: 
 
Cyber Insurance Risks Are Moving Too Fast For Underwriters
 
 
 
« AI: Is Your Business Ready?
France’s National Cybersecurity Policy: Both Defend & Attack »

CyberSecurity Jobsite
Perimeter 81

Directory of Suppliers

BackupVault

BackupVault

BackupVault is a leading provider of automatic cloud backup and critical data protection against ransomware, insider attacks and hackers for businesses and organisations worldwide.

Alvacomm

Alvacomm

Alvacomm offers holistic VIP cybersecurity services, providing comprehensive protection against cyber threats. Our solutions include risk assessment, threat detection, incident response.

IT Governance

IT Governance

IT Governance is a leading global provider of information security solutions. Download our free guide and find out how ISO 27001 can help protect your organisation's information.

North Infosec Testing (North IT)

North Infosec Testing (North IT)

North IT (North Infosec Testing) are an award-winning provider of web, software, and application penetration testing.

Perimeter 81 / How to Select the Right ZTNA Solution

Perimeter 81 / How to Select the Right ZTNA Solution

Gartner insights into How to Select the Right ZTNA offering. Download this FREE report for a limited time only.

Sonatype

Sonatype

Sonatype protects the world's enterprise software from security, compliance, licensing risks, while reducing application development and deployment time.

Maryman & Associates

Maryman & Associates

Maryman & Associates are specialists in computer forensic investigations, incident response and e-discovery services.

ASU Online - Information Technology Program

ASU Online - Information Technology Program

The Information Technology program at ASU Online provides you with the expertise to design, select, implement and administer computer-based information solutions.

Redspin

Redspin

Redspin provide penetration testing, security assessments and consulting services.

itbox.online

itbox.online

Itbox.online offers IT solutions to ensure that your company's technologies are always available and secure as your business demands.

A3Sec

A3Sec

A3Sec provides professional solutions in the areas of Cybersecurity, Device Monitoring, Business Intelligence and Big Data.

Fiserv

Fiserv

Fiserv offers a wide array of Risk & Compliance solutions to help you prevent losses from fraud and ensure adherence to regulatory and compliance mandates.

Polaris Infosec

Polaris Infosec

Polaris Web Presence Protection (WPP) is powered by our proprietary artificial intelligence and machine learning engine to ensure that attacks are stopped before they affect your business.

Privacera

Privacera

Privacera enables consistent data governance, security, and compliance across all your data services - on-premises and in the cloud - so you can maximize the value of your data.

Falcongaze

Falcongaze

Falcongaze SecureTower is a comprehensive DLP solution for the protection of business against internal threats.

ADVA Optical Networking

ADVA Optical Networking

ADVA is a company founded on innovation and focused on helping our customers succeed. Our technology forms the building blocks of a shared digital future and empowers networks across the globe.

gener8tor

gener8tor

The gener8tor Cybersecurity Accelerator offers a cutting-edge program in San Antonio, home to the second-largest concentration of cybersecurity experts in the United States.

Cerby

Cerby

Your team uses unmanageable applications that put you, your company, and your data at risk. Protect, secure, and accelerate your business automatically with Cerby.

Cognilytica

Cognilytica

Cognilytica’s Cognitive Project Management for AI (CPMAI) training and certification is recognized around the world as the best practices methodology for implementing successful AI & ML projects.

Focus on Security

Focus on Security

Focus on Security are Cyber Security recruitment specialists. We’re dedicated to connecting you with the top Cyber Security talent across the globe. We focus on partnerships and results.

SEALSQ

SEALSQ

For the last 25 years, SEALSQ have been developing secure semiconductor chips, secure embedded firmware, and tested hardware provisioning services to serve the vision of a safer connected world.