Every cyberattack carries financial implications, but a new survey reveals that the impact on brand reputation is also significant.
Data from Hiscox's latest Cyber Readiness Report revealed 67% of businesses experienced more attacks over the past year.
The data shows issues with both customer retention and attraction have more than doubled since 2023. Over a third of firms also experienced bad publicity, which then led to a negative reputation, up from 25% the year before, Hiscox, an insurance provider specializing in risks such as hacking, said.
“All businesses are at risk of cyberattacks, particularly as threats evolve in line with AI developments,” said Alana Muir, head of cyber at Hiscox, adding that artificial intelligence (AI) has obviously lowered the barrier of entry for more complex attacks.
That’s why employee training is extremely important. Over a third of firms (34%) admitted their organization’s cybersecurity measures are compromised due to a lack of expertise in managing technology risks.
“Small businesses may overlook cybersecurity training, believing they’re less likely to be targeted compared to larger companies. However, cyberattacks can impact businesses of any size. Empowering your employees to spot the signs of an attack is a strong line of defence to maintain secure daily operations,” said Muir.
The company surveyed (PDF) cybersecurity experts across eight markets: the United Kingdom, the United States, Spain, the Netherlands, Germany, France, Belgium, and Ireland.
Of the organizations that have experienced a cyberattack in the past 12 months, 47% reported greater difficulty in attracting new customers, and 43% said they were actually losing customers.
These numbers are much higher than in 2023 (20% and 21% respectively). Besides, 38% of the organizations said that a cyber incident resulted in bad publicity, and 21% reported that they lost business partners.
More generally, six-in-10 (61%) organizations now seem to believe that reputational damage from a cyberattack would significantly harm their business, and 64% believe they risk losing business if they do not handle client and partner data securely.
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