According to the latest Hiscox Cyber Readiness Report, two-thirds of organizations globally (67%) and in the UK (70%) have experienced an increase in cyber incidents over the past 12 months compared to the previous year.
Nearly half of the businesses impacted by these attacks report difficulties in attracting new customers, with 47% globally and 46% in the UK noting this challenge, a significant increase from 20% the previous year.
Other effects included a loss of existing customers (43% in 2024, up from 21% in 2023), negative publicity (38% in 2024, compared to 25% the previous year), and loss of business partners (21%, up from 16% in 2023).
Concerns over reputational damage have also played a key role in businesses’ decisions to make ransomware payments. Over the past year, the top reasons for paying ransom were to protect customer data, safeguard reputations, and recover data in the absence of backups.
However, paying ransom did not always lead to data recovery, with only 18% of businesses managing to fully recover their information.
Eddie Lamb (pictured above), chief information and security officer at Hiscox, stressed the importance of reputation management, noting that businesses invest years and substantial resources into building their reputation, which can be quickly undermined by a cyberattack.
“It is vital that businesses continue to foster an environment where cyber education is a continuous process, ensuring every member of the organization understands the critical role they play in maintaining cybersecurity,” he said.
The report also highlighted the role of new technologies in the increasing number of cyberattacks. Seven in 10 businesses globally (70%) and in the UK (70%) have integrated Generative AI (GenAI) into their operations, with over half (56% globally, 57% in the UK) acknowledging that it significantly impacts their cyber security risk profile.
Despite this, many businesses remain underprepared, with 34% of global firms (37% in the UK) admitting that a lack of expertise is compromising their ability to manage risks associated with emerging technologies.
Businesses are increasingly recognizing the link between cybersecurity and innovation. A quarter of companies globally (26%) and in the UK (28%) view cyber risk management as a critical factor supporting innovation in their operations.
Lamb added that businesses should view technological innovation and cyber security as complementary forces.
“Business leaders will need to continue to invest in attracting the right expertise to manage emerging technology risks if they are to not just survive but thrive in a world of expanding technologies with their reputations intact,” he said.
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