Cyber threats continue to escalate, with 69% of U.S. businesses reporting a rise in cyber attacks over the past year, according to the 2024 Hiscox Cyber Readiness Report. It is probably safe to say this is not the year-to-year growth most companies seek. Surveying over 2,100 global cybersecurity professionals, including 400 U.S. participants, the study highlights critical vulnerabilities, the financial toll of breaches, and strategies for strengthening cyber resilience.
U.S. Businesses Cyber Attacks
- Cyber Attacks Outrank Other Threats: U.S. business leaders rank cyber attacks (32%) as a greater threat than skills shortages (30%) or bankruptcy (27%).
- Frequent Cyber Incidents: U.S. businesses face an average of 62 cyber incidents annually—equivalent to more than one per week.
- Common Attack Outcomes: Ransomware (32%) and virus outbreaks (37%) are prevalent, with 56% of companies reporting financial losses from payment diversion fraud and 36% citing loss of encrypted data.
- Cyber Resilience is Critical: 72% of U.S. companies view cyber resilience as vital to their business strategy.
- Ransom Payments Fall Short: Only 7% of companies that paid a ransom recovered all their data, while 10% experienced data leaks despite payment. Post-attack, 43% of businesses struggle to attract new clients due to reputational damage.
You can read the whole report here, and a few of our takeaways follow.
U.S. Businesses Face Growing Cyber Threats
The report reveals an average of 62 attacks per U.S. business annually—more than one incident per week. For many leaders, cyber risks now overshadow traditional threats like bankruptcy or skills shortages. Among reported outcomes, ransomware attacks (32%) and financial losses due to payment fraud (56%) are prominent concerns.
Cybersecurity Lapses Amplify Risks
Human error and outdated technology are significant contributors to increased risk. A lack of employee awareness accounts for 41% of heightened exposure, while reliance on obsolete systems amplifies vulnerabilities for 47% of companies.
“Despite phishing emails becoming commonplace, attackers remain two steps ahead,” noted Mike Maletsky, Hiscox USA’s Head of Technology & Cyber. Regular employee training is vital to counter these evolving threats, he added.
Paying Ransoms Fails to Ensure Recovery
While ransomware victims often pay to regain control of their data, only 7% recover all compromised files. Worse, 10% experience data leaks even after payment. These outcomes highlight the importance of proactive measures like consistent data backups, which 35% of affected companies lacked.
Strategies to Mitigate Risk
Hiscox emphasizes three key strategies for U.S. companies:
- Employee Training: Addressing the 57% of ransomware incidents initiated via phishing emails through robust training programs.
- Technology Upgrades: Retiring legacy systems to close security gaps.
- Data Backups: Establishing reliable data recovery systems to reduce reliance on ransom payments.
Reputational Damage Exacerbates Fallout
Cyber attacks tarnish brands, with 43% of businesses losing customers and 47% struggling to attract new ones post-breach. Reputational recovery remains challenging, underscoring the broader impacts of insufficient cybersecurity measures.
AI Adoption Sparks New Concerns
The integration of generative AI (GenAI) into operations, reported by 70% of organizations, complicates the cyber landscape. While boosting productivity, GenAI introduces new vulnerabilities, as 56% of leaders fear its impact on security. Balancing innovation with robust defenses is imperative.
Building Long-Term Cyber Resilience
Investing in cybersecurity is increasingly viewed as integral to business success. U.S. firms spend an average of 11% of their IT budgets on cybersecurity, with smaller companies allocating even more. Beyond financial investment, fostering a culture of shared accountability and continuous education is key.
“Cyber resilience is not just a technical challenge; it’s a business imperative,” said Eddie Lamb, Hiscox’s Chief Information and Security Officer. “Aligning cybersecurity with business strategy ensures organizations can thrive in an evolving threat landscape.”
With attacks growing in frequency and sophistication, the 2024 Hiscox Cyber Readiness Report offers a stark reminder: businesses must adopt proactive measures, invest in resilience, and foster a unified approach to cybersecurity to safeguard their futures.
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