Cyber attack costs have risen by 80% for US businesses, as the frequency of attacks also continues to rise, up 7% from 2021
The Hiscox Cyber Readiness Report™ 2022 reveals that both the frequency and cost of cyber attacks are rising for US businesses, and the pandemic is continuing to have lasting effects on the cyber security landscape. While the US remains a global leader in cyber maturity, they are also most likely to pay a cyber-related ransom. To gauge businesses’ preparedness to combat cyber incidents and breaches, Hiscox surveyed over 5,000 professionals responsible for their company’s cyber security from the US, UK, Belgium, France, Germany, the Netherlands, Spain and Ireland. This includes key findings from over 900 professionals from the US.
While 2022 has brought new challenges for US businesses, old challenges remain. Cyber attacks are a constant and bigger worry for US businesses than the ‘great reshuffle’. The survey revealed that US businesses are more concerned about cyber attacks (46%), than the pandemic (43%), or skills shortages (38%).
The number of cyber attacks is on the rise in the US, with almost half of all US businesses having suffered a cyber attack. In the past year, there has been a 7% increase in cyber attacks on businesses in the US. Now, roughly half of all US businesses (47%) have suffered an attack in the past 12 months.
Businesses are being forced to shell out higher amounts as costs of cyber attacks continue to rise. The median cost of an attack in 2022 is $18,000, up from $10,000 last year. The US has also borne a generally higher cost from cyberattacks, with 40% of those suffering attacks being landed with costs of $25,000 or more. The most common point of entry was a corporate server in the cloud.
Top reasons for cyber risk increasing in the USA
“Despite 61% of us now being back in the office, businesses are still experiencing a hangover from the pandemic. Remote working provided a year-long Christmas for cyber criminals, and we can see the results of their cyber-feast in the increased frequency and cost of attacks. As we move into a new era of hybrid working, we all have an increased responsibility to continue learning, and managing our own cyber security”
Cyber Product Head, Hiscox USA
Did you know the US is a global leader in cyber maturity, but is also most likely to pay a ransom. In this report, we found that the US has the highest cyber maturity score of 3.05 compared to the average of 2.94. Nonetheless, US companies were the most likely to pay a ransom to recover data, with 84% who experienced a ransomware attack paying up.
It is important to make sure your organization is ready for anything that may come, including a cyber attack. In the wake of increased cyber attacks and costs paid, more businesses are considering purchasing a standalone cyber insurance policy. The number of US businesses that have a standalone cyber insurance policy remains stable at 34%, in comparison to the number of businesses which do not currently have or plan to purchase a policy, which has dropped from 18% in 2021 to 12% in 2022.
Median and maximum cost of cyber attacks
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The content is provided for general informational purposes and is not intended to and does not constitute business or legal advice to any particular person or entity.