Research published by RSM UK highlights that, despite a significant increase in cyber-attacks, the number of businesses that think they are likely to fall victim has fallen.
According to RSM UK’s ‘The Real Economy’ report, over a quarter (27%) of middle market businesses* have experienced a cyber-attack in the past year, up from one in five (20%) last year. Yet despite the increased risk to the 14,827 middle market businesses in London and the South East, the research found the number of businesses that felt they are ‘very likely’ to fall victim to a ransomware attack has actually fallen significantly, from 34% in 2021 to just 24% this year.
Ransomware attacks, where hackers either steal or encrypt data, rendering it inaccessible, then hold a business to ransom for it, have escalated 100% since the pandemic, according to the Information Commissioner’s Office (ICO). They are expected to rise further in future, partly due to changing external events such as increases in inflation, volatile financial markets and the current Russia-Ukraine situation.
Leading researchers for the cyber economy, Cybersecurity Ventures predict that by 2031 ransomware will cost victims $265bn a year, with an attack expected to take place every 2 seconds, up from every 11 seconds in 2021.
There is also evidence that criminals like to return to the scene of the crime, re-visiting easy targets where they have carried out a successful attack, knowing defences are weak. The Real Economy research found 17% of businesses have been targeted with ransomware more than once, compared to only 11% last year. The figures may suggest a level of complacency has set in among middle market businesses, leaving them vulnerable to future attacks. Alternatively, those who have invested in cyber security tools, specialist resources and cyber insurance may wrongly think they no longer need to consider the ongoing cyber threats and are now adequately protected from all types of attacks.
In recent weeks, data extortion group LAPSUS$ has shown how teenaged cyber criminals with little financial resources can extort data from large companies including Microsoft, NVIDIA and Samsung. With such sophisticated and high-profile technology companies who invest significantly in cyber security still coming under threat, middle market businesses must remain vigilant to the threat of cyber-attacks.
Paul Anthony, regional managing partner for RSM in the South said: ‘The rapid shift to home working brought about by Covid meant businesses were initially more aware of the need for tighter cyber security measures as people logged on to work from home, often utilising their own unsecured devices. Now, as many middle market companies have already made an initial investment in protecting their business, there is a risk they mistakenly believe they have done enough and have now developed a false sense of security. In reality, cyber security is an ongoing process, as criminals are constantly evolving, developing new attack techniques and seeking out new vulnerabilities. To keep one step ahead of the cyber criminals, businesses need to ensure IT systems remain secure, and continually review cyber security measures to ensure they are as robust as they possibly can be.’
Cyber-crime is now so prevalent that Ransomware is even available to buy as a service, more commonly known as RaaS (ransomware as a service). Criminal syndicates offer ransomware to would-be attackers, meaning quite often these criminals require very little technical knowledge to carry out an attack. This has increased the number of attacks that are possible exponentially. The current Russia-Ukraine situation means the threat of an attack, particularly on financial organisations or national infrastructure, is increased, as state sponsored groups carry out APTs (advanced persistent threats).
Paul Anthony concludes: ‘With cyber criminals now operating on an industrial scale, it is sadly no longer possible to completely eliminate the possibility of an attack, but by remaining aware of the fast-evolving cyber threat landscape and vigilant to potential threats, businesses can reduce the risk considerably.’
Tips to prevent a cyber-attack:
*The research was carried out by The Harris Poll for RSM. 415 senior executives from UK middle market businesses defined as companies with a turnover between £10m and £750m or financial institutions with assets under management of £200m to £7.5bn were surveyed for the research.
Data for this survey was collected between 10 January and 31 January 2022. Information was collected online or via telephone from 415 executives meeting the set criteria. All individuals qualified as executive level decision makers working across all regions and a broad range of industries. Responses have been weighted to ensure a true representation of the UK economy.
Chart percentages may not equal 100 per cent due to rounding.