Protecting UK Businesses from the Growing Threat of Cybercrime
Cyber security breaches and attacks remain a prevalent threat across the UK, affecting businesses of all sizes and industries. According to the 2023 Government Cyber Security Breaches Survey, a significant portion of UK businesses and charities have faced cyber security incidents in the last 12 months. The findings highlight the ongoing challenges that organisations face in safeguarding their digital assets and the crucial need for robust cyber protection.
Identification of Cyber Security Breaches and Attacks
In the past year, 50% of businesses and 32% of charities reported experiencing some form of cyber security breach or attack. The likelihood of such incidents is even higher among medium businesses (70%), large businesses (74%), and high-income charities with £500,000 or more in annual income (66%).
The most common type of breach is phishing, impacting 84% of businesses and 83% of charities. Other common threats include impersonation attacks, where individuals or organisations are impersonated via email or online, affecting 35% of businesses and 37% of charities. Viruses or other malware were reported by 17% of businesses and 14% of charities.
The financial impact of these breaches can be significant. The most disruptive breach in the last year cost each business an average of £1,205. For medium and large businesses, this figure rises to approximately £10,830. Charities, on average, faced a cost of £460 per breach.
Cyber Hygiene: Protecting Against Common Threats
To combat these threats, businesses and charities are advised to implement basic “cyber hygiene” measures. The survey shows that a majority of organisations have taken steps to protect themselves:
- 83% use up-to-date malware protection.
- 73% have restricted administrative rights.
- 75% utilise network firewalls.
- 54% have agreed processes for handling phishing emails.
These measures have seen a slight increase in deployment compared to previous years, reflecting an improved awareness and response to cyber threats among businesses.
Risk Management and Supply Chains
Larger businesses are more likely than smaller ones to take proactive steps in identifying and managing cyber risks. 31% of businesses and 26% of charities have conducted cyber security risk assessments in the past year, with the figures rising to 63% for medium businesses and 72% for large businesses. Furthermore, 43% of businesses and 34% of charities are insured against cyber security risks, an increase from 37% in 2023.
Despite the increased awareness, many organisations, especially smaller ones, lack formal procedures for managing cyber risks within their supply chains. Only 11% of businesses and 9% of charities review the risks posed by their immediate suppliers, with larger organisations showing a higher likelihood of conducting such reviews.
Board Engagement and Corporate Governance
Cyber security is becoming an increasingly high priority for senior management across businesses and charities. 75% of businesses and 63% of charities report that cyber security is a key focus for their senior management, with these figures rising to 93% for medium businesses and 98% for large businesses.
However, challenges remain, particularly in smaller organisations, where cyber security responsibility is often outsourced or not formally integrated into the business strategy. Only 30% of businesses and 30% of charities have board members or trustees explicitly responsible for cyber security, and a minority have formal incident response plans in place.
Incident Response and Cyber Crime
Despite the recognition of the importance of cyber security, many organisations are still unprepared for incidents. Only 22% of businesses and 19% of charities have formal incident response plans, though this is more common among medium and large businesses.
The survey also reveals that 22% of businesses and 14% of charities experienced cyber crime in the last 12 months, with these figures rising to 45% for medium businesses and 58% for large businesses. Phishing remains the most common type of cyber crime, reported by 90% of businesses and 94% of charities that experienced cyber crime.
Cyber Accreditations and Following Guidance
There has been a decline in the number of organisations seeking external information or guidance on cyber security. 41% of businesses and 39% of charities sought external advice in the past year, down from 49% in 2023. Awareness of government guidance such as the “10 Steps to Cyber Security” and the Cyber Essentials scheme remains limited, particularly among smaller organisations.
Conclusion
The findings of the 2024 Government Cyber Security Breaches Survey underscore the persistent threat of cyber security breaches and attacks in the UK. With phishing and other cyber threats on the rise, businesses and charities must prioritise cyber hygiene, risk management, and incident response to protect themselves.
At Clarke Williams, we understand the importance of safeguarding your business against cyber threats. Arranging a cyber insurance quote with us is quick and easy for most businesses, ensuring that you have the protection you need to mitigate risks and respond effectively to cyber incidents.
Don’t wait until it’s too late—contact Clarke Williams today to secure your business against the ever-present threat of cybercrime.
Source: 2024 Government Cyber Security Breaches Survey
Clarke Williams Insurance Brokers
Further Reading
- Cyber Insurance – Protecting Your Business from Interruptions Due to Third-Party Services
- How to Choose the Right Limit of Indemnity for Your Cyber Insurance Policy
- Cyber and Data Insurance
