Impact of Cyberattacks on U.K. Businesses
A recent study by Howden, a London-based insurance intermediary, has uncovered shocking statistics regarding the impact of cyberattacks on U.K. businesses.
Over the last five years, these attacks have led to a staggering loss of approximately £44 billion (around US$55.3 billion) in revenue.
The research surveyed 1.3 million private sector firms, revealing that more than half—52%—had fallen victim to at least one cyberattack between 2019 and 2024.
These attacks cost companies an average of 1.9% of their revenue.
The findings were based on insights gathered from 905 IT decision-makers working in the U.K.’s private industry.
Vulnerability Across Business Sizes
Particularly concerning is the vulnerability of larger enterprises.
Among companies with revenues exceeding £100 million (US$125.6 million), a striking 74% reported experiencing a cyberattack during the past five years.
However, smaller businesses are not safe either; nearly half (49%) of small and medium-sized enterprises (SMEs) with revenues between £2 million and £50 million (US$2.5 million to US$62.8 million) faced similar threats.
The survey pinpointed the main sources of cyberattacks: compromised email accounts were responsible for 20% of incidents, while data theft accounted for 18%.
The financial toll of these breaches is considerable, with affected companies experiencing average losses of £2.1 million and £2 million (US$2.6 million and US$2.5 million), respectively.
Barriers to Enhanced Cybersecurity
Despite the growing threat of cybercrime, compliance with basic cybersecurity protocols remains dishearteningly low.
Only 61% of businesses reported using antivirus software, and a mere 55% had implemented network firewalls.
The report notes several obstacles that businesses face in bolstering their cybersecurity; costs and a lack of awareness were each cited by 26% of respondents, while 22% pointed to insufficient internal IT resources.
According to the study, by adopting essential cybersecurity measures, U.K. businesses could potentially cut their financial losses from cyberattacks by as much as £30 billion (approximately US$37.7 billion) over five years.
Furthermore, these practices could save each business around £3.5 million (US$4.4 million) over a decade, delivering a notable 25% return on investment.
When it comes to bolstering cybersecurity, U.K. firms identified several strategies that could be effective.
The most favored approach involved tax incentives for cyber-related investments, which appealed to 33% of respondents.
Close behind were free access to expert services (32%), mandatory minimum cybersecurity standards (31%), and compulsory cyber insurance (26%).
Howden officials emphasized that both the insurance industry and governmental bodies have critical roles to play in driving the adoption of cybersecurity measures, especially by helping businesses navigate typical investment barriers.
A representative from Howden highlighted the increasing threat posed by cybercrime, pointing to businesses’ growing dependence on technology and the associated vulnerabilities that arise.
They asserted the insurance sector’s key role in building resilience and raising awareness about necessary security measures that businesses should prioritize.
Moreover, it is crucial to engage small and medium-sized enterprises, which have historically been overlooked by the cyber insurance market.
These firms are vital contributors to economic dynamism and growth.
Enhancing insurance coverage and providing educational resources on cybersecurity can significantly improve their robustness against revenue losses linked to cyberattacks.
The insights mentioned stem from a proprietary survey conducted by YouGov between September 9 and September 22, 2024.
This investigation involved 905 senior IT decision-makers from various private sector organizations across the U.K., focusing on understanding the current landscape of cybersecurity threats and defenses.
Source: Claimsjournal.com
