UK Government warns SMEs about Advancing Cyber Threats

Each month, our data analyst Beulah Berrisford will provide a flavour of some of the data she has been looking at that is relevant to our industry. Here’s a quick snapshot into of the latest cyber security risks facing SMEs…

Recently, the Department of Science, Innovation and Technology (DSIT) has highlighted the evolving threat of cyber-attacks against Small/Medium Enterprises in a white paper report. Government data shows that 43% of SMEs reported a cyber-attack in the last year, with businesses reporting an average direct loss of £3,240.  Furthermore, ongoing reputational damage, lost revenue, and prolonged recovery periods can ‘result in lasting competitive disadvantages’ and threaten business survival.

Why SMEs are a target

Cyber-attacks against SMEs are forecast to grow ‘in scale and in sophistication’. SMEs are often targeted as entryways into wider networks. For example, a remover assisting in a high-profile corporate move, or a storage facility housing valuable private collections, would be prime targets due to the client financial and contact information held on their systems.

Evolving threats

Cybercrime is also increasingly accessible. Underground markets have begun to trade in pre-built software that allows ‘less experienced actors… to launch impactful attacks’. A prevalent model is ‘Ransomware-As-A-Service’, which blocks victims from accessing their systems until a sum is paid, with the creators of the ransomware taking a cut of the ransom as payment from their buyers. Government experts describe ransomware as a ‘highly scalable and profitable form of cyber extortion’.

What you can do

However, in positive news, Microsoft asserts that ‘98% of cyber-attacks can be prevented with basic cyber hygiene’. Cyber hygiene is the routine application of everyday practises such as keeping software updated, using strong and unique passwords, consistently backing up data, and installing reliable security tools such as Multi-Factor Authentication (MFA).

Additionally, cyber insurance has begun to emerge in the market as a way of managing this new risk, and insuring business resilience. Though cyber insurance is not a panacea, it is a valuable tool in an SMEs toolkit. Though technical language has historically been a barrier to cover, the government has emphasised the role of insurance brokers in demystifying cyber risk.