The cost of cyber security breaches: British businesses lost almost £30 billion in 2016


The cost of cyber security breaches: British businesses lost almost £30 billion in 2016

  • New survey indicates 3 million British businesses were compromised by cyberattacks last year

  • Computer viruses and phishing attacks remain the most common threat to businesses

  • Adoption of cybersecurity technologies increases fastest amongst small businesses

New research published today by Beaming, the business ISP, reveals that more than half (52 percent) of British businesses fell victim to some form of cybercrime in 2016. Beaming’s study, which was conducted by researchers at Opinium, indicates that 2.9 million UK firms suffered cybersecurity breaches nationwide last year. The cost of cyber security breaches came to a total of £29.1 billion.

Computer viruses and phishing attacks were the most common corporate cyber threats faced by British businesses last year, in both cases impacting 23 percent of the businesses surveyed. Just under a fifth (18 percent) of businesses suffered some form or hack or data breach in 2016.

The risk of cybersecurity breaches increases with business size. 71 percent of organisations with more than 250 employees were victim to some form of cybercrime last year, compared to less than a third (31 percent) of enterprises with fewer than 10 people.

Cyber crimes hurting British businesses in 2016

Cybercrimes hurting British Businesses

Hacking and data theft top the cyber threat agenda

The threat of hacking and data theft garners the greatest amount of attention at board level within British businesses. A third (30 percent) of companies discuss these matters in senior leadership meetings, compared to less than a fifth (18 percent)a year ago.

More than half a million British businesses took out cyber insurance policies for the first time in the last 12 months. 19 percent of UK companies are now covered for losses associated with cyber security breaches and data theft.

Small businesses accelerate investment in cybersecurity

Adoption of new cybersecurity technologies increased the fastest amongst smaller businesses in 2016. Demand for unified threat management devices, web application firewalls and network access control systems increased by 71percent, 59percent and 45percent respectively amongst those employing between 10 and 49 people.

Sonia Blizzard, managing director of Beaming, comments: “Large organisations are more likely to become a victim of cybercrime due to being more valuable targets and because employees are often the weakest link in the cybersecurity chain. They are also more resilient as they have resources to aid their recovery. Successful cyberattacks on smaller businesses are less frequent, but cause disproportionately more harm. It is encouraging that small businesses are taking the threat more seriously and investing in their cyber defences, as a single attack could potentially break them.”

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