21% of businesses say solvency affected by cyberattacks

A new report from insurance firm Hiscox has revealed that 21 percent of US and European businesses have had their solvency affected by cyberattacks, while 19 percent were hit with ransomware in the last year.

The data comes from a new Hiscox survey of 5000 organisations across the US and Europe, which also revealed that 48 percent of respondents said they suffered an attack over the past 12 months, while businesses in seven out of eight countries see cyber as their biggest threat.

19% of respondents reported a ransomware attack, up from 16% the previous year, with two-thirds of the firms surveyed paying up.

The survey also found that the median cost of an attack has risen 29% to just under $17,000 (£13,728). Median attack costs, as a percentage of revenues, were two-and-a-half times higher for firms ranked as ‘cyber novices’.

For the third year running, the UK was found to have the smallest proportion of firms being attacked (42%), but the median cost of attacks has doubled to $28,000 (£22,612).

Respondent’s mean cyber security spending is also up 60% in the past year to $5.3m (£4.2m), and has increased by 250% since 2019.

In response to the study, Mike Newman, CEO of My1Login, comments: “These worrying figures highlight just how frequently businesses are being hit with cyberattacks and the devastating consequences that happen when they occur.

“Today, our reliance on digital has never been greater and cybercriminals know when organisations lose access to their data, they will do almost anything to get it back, even if it means paying millions in ransom demands. As a result, cybercrime has become such a profitable business it’s unlikely to go away any time soon.

“Instead, businesses need to focus on hardening their networks against attackers and improving their cyber defences.

“With stolen credentials being the primary way for criminals to get access to enterprise networks, doing more to protect employee logins is a big step. Improving the security of user credentials and passwords through passwordless security is a great way to achieve this. This means they can’t be stolen, leaked or socially engineered out of victims, which offers immense security benefits to all businesses, while reducing their vulnerability to data breaches and ransomware.”