Hiscox’s 2024 Cyber Readiness Report has been released, and it shows that 70% of UK businesses reported more cyber threats over the past year. To make things worse, hackers are no longer targeting only on large organisations; smaller businesses are also struggling with cybersecurity. Many businesses are overwhelmed, with outdated security measures that can properly manage threats as hackers become more intelligent at bypassing businesses current security.
The rise of AI and cloud-based tools has added complexity to this problem. Companies are getting into these technologies quickly, but they often lack skilled staff to manage the risks that come with them. 1/3 of businesses in the Hiscox survey admitted that their security measures are not where they need to be, leaving gaps for attackers to exploit.
Remote work has also left many organisations exposed. Hiscox reports that 44% of businesses say that employees using personal devices have made their systems more vulnerable. With workers accessing sensitive data from unsecured networks, businesses are facing constant pressure to find new ways to keep their operations safe.
What Damage Do Cyber Attacks Leave Behind?
On top of cyber attacks disrupting daily operations, they can also put a threat to companies’ trust from customers. Hiscox’s report shows that 46% of businesses hit by attacks struggled to attract new customers, while 43% lost existing ones. Public breaches also scare away partners which then forces businesses to abandon deals and relationships they counted on for growth.
Some companies resort to paying ransom demands to limit reputational damage. But Hiscox data shows that only 18% of businesses that paid ransoms fully recovered their data. Even with payment, criminals often fail to return everything which in turn leaves businesses frustrated and financially drained.
“As businesses learn to combat ransomware attacks, hackers are evolving their tactics. The threat has shifted from operational disruption to data extortion, with hackers targeting highly sensitive information to discredit organisations. Who are they doing business with? And do their actions align with their public values? Hackers are holding reputations to ransom – and no business is too small to be at risk,” shared Alana Muir Head of Cyber, Hiscox UK.
Once trust from customers is lost, it is difficult to rebuild. Years of effort can fall apart after a single breach, leaving companies with long-term consequences that go beyond the initial attack. Business leaders are learning that managing reputation is as important as defending data.
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Is New Technology Helping or Hurting?
AI and cloud-based systems bring new ways to run operations, but they also introduce new risks. Hackers are using AI to create phishing scams that are hard to spot, tricking employees into clicking links that open the door to data breaches. Hiscox reports that over half of business leaders now view AI tools as increasing the complexity of their security concerns.
Another report, Databricks’ 2024 Data Health Check, supports these findings, showing that 34% of businesses feel unprepared to manage risks linked to emerging technologies. Without skilled staff, even the most advanced systems can fail to protect businesses. Poor planning leaves room for attackers to exploit weaknesses, undermining any progress companies hoped to achieve with new tech.
Some businesses have adopted air-gapped backups—isolated storage systems designed to keep hackers out. Databricks shows that while 75% of businesses have some form of air-gapping in place, smaller businesses struggle to put these systems in place. This leaves them more vulnerable to ransomware attacks and makes recovery slower and more expensive.
How Are Businesses Preparing for the Next Threat?
Companies are investing more in education to stay ahead of threats. Hiscox reports that 65% of businesses have expanded cybersecurity training to help employees avoid phishing scams. This training is necessary, as human mistakes remain one of the most common ways hackers breach systems. Teaching staff to recognise threats can help keep these risks at a minimum.
Cyber insurance is also becoming an important part of many businesses’ plans, helping them recover from financial losses caused by attacks. Hiscox warns, though, that insurance alone cannot replace proper preparation. Companies still need solid defences and quick response plans to minimise damage when attacks occur.
Hiscox also reports that 72% of businesses now have a senior executive overseeing cybersecurity. Businesses are starting to understand that security is everyone’s responsibility, not just a task for the IT team. Organisations that have a sense of responsibility across all departments are better equipped to recover quickly and protect both their operations and reputation in the face of new threats.