Cyber attacks are impacting businesses' ability to attract customers, says report

The survey said the interest implicit reputational harm was influencing decisions made by firms to marque ransomware payments – thing cyber information experts impulse companies and individuals not to bash arsenic it is nary warrant of resolving the issue

A study has highlighted that businesses deed by an summation successful cyber incidents are struggling to pull customers.

Hiscox's yearly cyber readiness study revealed that astir fractional of the companies affected by cyber attacks person faced important hurdles successful attracting caller customers compared to the erstwhile year. The survey pointed retired that fears of reputational harm are driving firms to see paying ransoms successful effect to ransomware, contempt cyber information experts advising against specified payments arsenic they connection nary warrant of resolving the issue.

The security company's study noted a worrying trend: 70% of UK firms reported much cyber incidents successful the past 12 months than successful the preceding year, with 46% experiencing difficulties successful attracting customers and 43% losing existing ones since the attacks.

Additionally, 38% suffered antagonistic publicity, and 21% mislaid concern partners—figures that person each risen since 2023. Eddie Lamb, main accusation and information serviceman astatine Hiscox, commented connected the situation: "In today’s concern environment, protecting the estimation of immoderate concern is conscionable arsenic captious arsenic safeguarding the carnal assets.

"Businesses volition walk not lone years, but besides thousands – if not millions – of pounds, gathering their reputation, lone to spot it destroyed successful minutes pursuing a cyber attack.

"It is captious that businesses proceed to foster an situation wherever cyber acquisition is simply a continuous process, ensuring each subordinate of the organisation understands the captious relation they play successful maintaining cyber security."

The study besides highlighted concerns astir however prepared businesses are to woody with the increasing fig of cyber incidents, revealing that 37% of UK businesses consciousness their cyber information measures are not up to scratch owed to a deficiency of expertise successful managing risks associated with caller technologies.

"Businesses request to spot technological innovation and cyber information arsenic complementary, alternatively than conflicting, forces," commented Mr Lamb.

"Business leaders volition request to proceed to put successful attracting the close expertise to negociate emerging technology risks if they are to not conscionable survive, but thrive, successful a world of expanding technologies with their reputations intact."