65% of North East businesses suffer cyber attacks

Cyber attacks pose more of a risk than ever as new research shows that 65% of North East businesses experienced an attack last year.

The threat of losing confidential information through cyber attacks has heightened according to the research published by the Department for Business, Innovation and Skills.

The 2013 Information Security Breaches Survey found that 65% of businesses in the region suffered an unauthorised outside attack, such as a hack, in the last year.

Of the companies surveyed, 81% had experienced staff related incidents and 65% suffered misuse email access.

The survey, which is funded by BIS and carried out by PwC also found that 80% of North East SMEs experienced a frequent unauthorised access to systems or data.

And shockingly, 100% of SMEs surveyed had seen loss misuse of confidential information, it is estimated this costs small businesses up to six per cent of their turnover.

Asam Malik, risk assurance director, PwC Newcastle said: “UK and North East businesses face more advanced threats than ever before from unauthorised outsiders.

“The business world has changed and companies of all sizes, in all countries and across industries, are now routinely sharing information across business borders, whether it’s with business partners or employees’ personal devices.

“Cyber security is critical. It is no longer only an IT challenge; business leaders need to make sure they are protecting what is most critical to their organisation’s growth and reputation.

“Organisations also need to make sure that the way they are spending their money in the control of cyber threats is effective.

“Spending on cyber control as a percentage of an organisation’s IT budget is up this year from an average of 8 per cent to 10 per cent, but the number of breaches and their impact is also up as well so it is clear that there is work to be done in measuring the effectiveness of the security spend.”

The figures come as the Technology Strategy Board extends its Innovation Vouchers scheme to allow small and medium enterprises (SMEs) to bid for up to £5,000 from a £500,000 pot to improve their cyber security by bringing in outside expertise.

BIS is also publishing guidance to help small businesses put cyber security higher up the agenda and make it part of their normal business risk management procedures.

Minister for Universities and Science David Willetts said: “Keeping electronic information safe and secure is vital to a business’s bottom line.

“Companies are more at risk than ever of having their cyber security compromised, in particular small businesses, and no sector is immune from attack.

“ But there are simple steps that can be taken to prevent the majority of incidents.

“The package of support we are announcing today will help small businesses protect valuable assets like financial information, websites, equipment, software and intellectual property, driving growth and keeping UK businesses ahead in the global race.”