More than half of respondents (59pc) to the ninth annual Hiscox Cyber Readiness Report from SMEs said they had experienced a cyber-attack in the last 12 months. The ripple effect of a cyber-attack is significant, according to the insurer: 30 per cent of respondents reported a reduction in business performance indicators, such as share price; 29pc incurred increased costs associated with notifying affected customers; and 29pc found it hard to attract new business following an attack. Some 44pc were out of pocket as a result of payment diversion fraud, and 32pc said employees had struggled with burnout following an attack.
Eddie Lamb, Global Head of Cyber at Hiscox, said: “No business, however small, can afford to underestimate the devastating impact a cyber-attack can have. Cyber-attacks don’t just disrupt day-to-day operations; they can threaten the very survival of a business. The financial fall-out, from crippling fines to lost customers or soaring costs, can push even the most resilient business to the brink. On top of this, the stress and long hours required to recover can impact staff morale and even lead to burnout.”
While most (65pc) of respondents felt AI was more of an asset than a vulnerability, over half (57pc) admitted to having been hit by at least one attack as a result of an AI-related vulnerability. Emerging AI-driven threats include AI social engineering attacks, the use of deepfakes, vulnerabilities in third party AI tools, and AI breaking access controls to company data leading to unintended disclosure. In response, near all, 94pc of SMEs say they are planning to boost their investment in cyber security over the next 12 months, 70pc extending the cyber training they provide to employees, and 60pc hiring more staff to increase cyber resilience.
Eddie Lamb added: “Having previously built and grown my own small business, I recognise first-hand the crucial role SMEs play in the global economy, driving innovation, growth, and employment in local communities. By taking active steps to safeguard their operations, small business owners can not only protect themselves but also contribute to the resilience of the broader business community. We hope this report empowers SMEs to better understand the risks they face and to take meaningful steps to protect themselves, so they can stay secure and pursue further growth.”
Comment
