A new report from Hiscox reveals that 67% of organizations worldwide experienced at least one cyber attack in the past 12 months—an all-time high and the fourth consecutive year of rising attack rates.
The Hiscox Cyber Readiness Report 2024 surveyed businesses in eight countries, including the UK, US, Germany, France, Spain, Netherlands, Belgium, and Ireland. The findings underscore the growing frequency and sophistication of cyber threats faced by companies of all sizes.
Rising Threats and Heavy Costs
The report shows a sharp increase from the previous year’s 53% attack rate. Two-thirds of businesses (66%) said they faced more cyber incidents compared to the year before, and 17% experienced over 50 attacks in just 12 months.
The financial fallout is also growing. About 13% of affected organizations reported losing between $100,000 and $499,000 from a single incident.
Most Common Attack Method: Email Compromise
Business email compromise remains the most frequent attack vector for the second year running. In the UK, 57% of attacks involved payment diversion fraud, where funds are redirected to fraudulent accounts.
The report also highlights human error as a major vulnerability. In 46% of breaches, an employee served as the entry point for attackers.
Preparedness Still Lags
Despite growing awareness of cyber risks, many businesses are still unprepared. One in three leaders (34%) admitted their organizations are not adequately prepared to handle an attack, while 26% said they lack the necessary resources.
This is concerning given that 75% of companies now consider cyber resilience to be a key part of their business strategy.
The Hidden Cost: Reputation
Beyond financial losses, companies face serious reputational harm. About 61% of leaders believe a cyber attack would significantly damage their brand, while 64% fear losing customers or partners due to poor data handling.
The report shows these fears are justified. Among organizations that suffered attacks:
- 47% found it harder to attract new customers (up from 20%)
- 43% lost existing customers (up from 21%)
- 21% lost business partners (up from 16%)
Trust violations stemming from data breaches often result in long-term damage to customer and partner relationships.
Workforce Training Takes Center Stage
To address the human element of cyber risk, businesses are increasing their investment in training. About 65% of leaders say they’ve provided extra cybersecurity education for remote workers, and 72% now have a dedicated cybersecurity leader in place—a number that climbs to 97% in firms with over 1,000 employees.
Remote work continues to challenge security efforts, with more than half of UK businesses reporting increased vulnerability due to distributed teams.
