Cybercrime is on the rise, and so is the threat to business said the Hiscox Cyber Readiness Report 2020. The fourth edition of the annual report found cyber losses have risen nearly six-fold worldwide in the past year.
The study surveyed firms in the UK, the US, Spain, the Netherlands, Germany, France, Belgium and Ireland.
AccordiAng to the report, as cyber security practices grow, so do the stakes. The proportion of firms reporting a cyber event is down this year from 61% to 39%, but the financial impact of each breach is many times greater than before.
The report said though the losses are increasing, the cyber landscape is maturing. Also, the number of organisations which have achieved ‘expert’ status has gone up. The proportion of cyber experts has increased from 10% to 18% since 2019.
This positive turn follows two years of stalled growth, suggesting that the corporate world is becoming better equipped to safeguard against cybercrime. The pace of spending has also accelerated, from $1.45m to $2.03m on average – and it seems this increased investment is buying expertise.
The threat of cybercrime is by no means diminished, and large firms are still finding themselves in the firing line, with more than half of enterprise-scale organisations reporting at least one cyber incident. One in six of those attacked were held to ransom with costly consequences.
Hiscox cyber CEO Gareth Wharton said, “While the number of firms reporting a cyber breach is down this year, the cost of criminal activity in this area appears markedly higher. The number of businesses that have paid a ransom following a malware infection is chilling. There is, however, one positive message from this year’s report.
“There is clear evidence of a step change in cyber preparedness, with enhanced levels of activity and spending. The take-up of standalone cyber insurance remains patchy, but this report is a reminder that firms are many times more likely to have a cyber incident than either a fire or a theft – for which most automatically insure.” M