UK firms 15 times more likely to suffer cyber attack than fire or theft

One in six firms met the demands of hackers last year by paying out ransoms, according to the “chilling” findings of a report on cyber crime.

The annual Hiscox Cyber Readiness Report revealed that 6% of the 5,569 firms polled – and one in six of those attacked – had surrendered by paying a ransom following a cyber attack.

The highest losses for a single firm targeted with ransomware hit $50 million (£40.2m).

The report also showed that total cyber losses surged 50% to nearly $1.8bn (£1.4bn) in 2019.

Cyber losses per firm have risen nearly six-fold, from an average of $10,000 (£8,041) a firm to $57,000 (£45,832).

UK firms are now 15 times more likely to suffer a cyber attack than a fire or theft, the report suggests.

It revealed the biggest reported cyber loss among firms in the eight countries surveyed was suffered by a UK financial services firm, at $87.9m (£71m).

The report also found the highest loss from any one cyber event was $15.8m (£12.7m), involving a UK professional services firm. It comes after a recent spate of cyber attacks on British firms, with foreign exchange giant Travelex becoming the victim of a high-profile hack at the turn of the year and reportedly paying out $2.3m (£1.8m) in January to the notorious Revil ransomware gang.

The New Year’s Eve attack left its systems down for weeks, forcing staff to resort to pen and paper.

But while cyber attack losses rose last year, the Hiscox report also showed firms are upping their defences against hacks, with spending on cyber security up 39%.

The proportion of businesses targeted by cyber criminals fell from 61% to 39%.

Gareth Wharton, Hiscox Cyber chief executive, said: “The number of businesses that have paid a ransom following a malware infection is chilling.

“There is, however, one very positive message from this year’s report – there is clear evidence of a step-change in cyber preparedness, with enhanced levels of activity and spending.”