Despite the continued increase in cyber attacks, there is marked improvement in sentiment.
For the seventh-consecutive year, we have produced the Hiscox Cyber Readiness Report. It provides a current view of the cyber threat landscape and how businesses are managing the ever-evolving threat. Drawn from a representative sample of over 5,000 companies across eight countries by size and sector, this reflects the direct experience of those on the front lines of the business battle against cyber crime.
Cyber attacks rose for a fourth year — now over half of surveyed companies experienced an attack. Despite the continued increase in cyber attacks, however, there is marked improvement in sentiment, with a drop in the proportion of firms that see cyber as the number one challenge to their business. This may be down to the rise of other issues, notably economic downturn.
Lower median costs this year partly reflects an increasing trend towards fraud, such as payment diversion via business email compromise. The increasing prevalence of cyber insurance may also have played its part in managing costs. Nearly three-quarters of attacked firms had some form of cyber cover.
Where a ransom was demanded, the principal reason firms paid was to stop sensitive data from being released. This marks a subtle shift from data encryption to data exfiltration on the part of the hackers.