Cyberattacks affect business reputation as well as finances, insurer says – Irvine Times

Hiscox’s annual cyber preparedness report said that among companies affected by cyber attacks, almost half said they faced significant challenges in attracting customers compared to the previous year.

The study said concerns about reputational damage influenced the decisions made by businesses to make ransomware payments – something cyber security experts are urging companies and individuals not to do as it is no guarantee of resolving the problem.

According to the insurance company’s report, 70% of UK businesses said they had experienced more cyber incidents in the last 12 months than in the previous year, and 46% said they had problems attracting customers afterwards, while 43 % said they lost existing customers.

Meanwhile, 38% said they had bad publicity and 21% lost business partners.

All of these figures are higher than in 2023.

Eddie Lamb, Chief Information and Security Officer at Hiscox, said: “In today’s business environment, protecting the reputation of any business is as critical as protecting physical assets.

“Businesses will spend not just years but thousands – if not millions – of pounds building their reputation, only to see it destroyed within minutes of a cyber attack.

“It is vital that businesses continue to foster an environment where cyber education is an ongoing process, ensuring that every member of the organization understands the critical role they play in maintaining cyber security.”

The report also found concerns about the preparedness of businesses to deal with the growing number of cyber incidents, with 37% of UK businesses saying they believe their cyber security measures have been compromised due to a lack of experience in managing the risks associated with emerging technologies , which are quickly perceived.

“Businesses need to see technological innovation and cyber security as complementary rather than conflicting forces,” said Mr Lamb.

“Business leaders will need to continue to invest in bringing in the right expertise to manage emerging technology risks if they are to not just survive, but thrive in a world of expanding technology with reputations intact.”