More than three out of five firms report being the target of a cyber attack in the past year, new research has revealed.
The finding forms part of business insurer Hiscox’s Cyber Readiness Report 2019, which surveys firms on their cyber security strategy and execution.
The study found that the frequency of cyber attacks has increased sharply in the last 12 months.
According to the study, some 61 per cent of firms experienced a cyber incident in the past year, up from 45 per cent in 2018.
While larger businesses are still the most likely to be targeted, the proportion of small and medium-sized firms reporting incidents has also increased. Attacks on the smallest of firms have increased from 36 to 47 per cent, while attacks on medium-sized firms (50 to 249 employees) have increased from 36 to 63 per cent.
Alarmingly, the average cost of a cyber breach has soared in the past year, rising from $229,000 (£176,000) in 2018 to $369,000 (£283,000) in 2019 – an increase of 61 per cent.
Commenting on the report, Gareth Wharton, Hiscox Cyber CEO, said: “This is the third Hiscox Cyber Readiness Report and, for the first time, a significant majority of firms report one or more cyber attacks in the past 12 months.
“Where hackers formerly focused on larger companies, small and medium-sized firms now look equally vulnerable. The cyber threat has become the unavoidable cost of doing business today.”
Positively, however, more and more firms are taking a “structured approach to the problem”, said Mr Wharton.
According to the study, firms with no defined role for cyber security have halved in the past year, from 32 to 16 per cent, while less than a third (32 per cent) of respondents report “changing nothing” following a cyber incident.