As we head into the new year, cyber security is still at the forefront of concern for any business. These concerns are not unfounded; half of UK businesses and almost a third of charities reported experiencing cyber security breaches or attacks in the UK Government’s 2024 Cyber Security Breaches Survey.

The following trends of cyber attacks and breaches are predicted for the next 12 months:

Artificial Intelligence
Cyber Criminals may leverage artificial intelligence and automation to create more sophisticated ransomware attacks this year. The improved methods can spread ransomware across networks and identifying the attack is critical. Additionally, ransomware attacks may target supply chains to cause maximum destruction.

Phishing Emails
Cyber criminals are predicted to create phishing emails with flawless grammar with the use of AI to correct their emails. The phishing email will have highly adaptive malware that can evade systems.

Hacking
Cyber hacking is a partial or complete take over of a computer system or certain functions within its system. It’s usually to access important data such as the company’s banking or customer information. Cybercriminals can gain access by remotely hacking into your business’ systems, posing as your IT company and your employee giving them access to their computer and everything within it, or a phishing email with a link that then allows them access for example.

Quantum Computer Cryptography
Even though it is still in its early days, quantum computing could advance by 2025 and pose a threat to established data encryption. This presents risks to data security, particularly for industries like healthcare and finance that depend on encryption to safeguard the personal sensitive data of their clients.  

How to reduce your exposure to Supply Chain Cyber Attacks?

78% of Cyber Attacks reported by businesses stemmed from a supplier or third-party breach. Yet only 11% of businesses have reviewed the cyber security risks posed by their immediate supply chains.

In November 2024, a third party supplier Software Vendor, Blue Yonder reported they were experiencing disruptions to their managed services hosted environment due to a ransom attack. This affected businesses such as the popular coffee chain Starbucks and UK retailers Sainsbury’s and Morrisons.

The attack affected the businesses as it disrupted their distribution processes and their ability to manage their employees with schedules and payroll being temporarily unavailable.

Incorporate cyber-risk management into supplier contracts
Employers and suppliers should have explicit security expectations. Before they start working together, organisations should specifically ask their suppliers to confirm how they will report cyber incidents, securely store customer data, and adhere to other security best practices.

Minimise Access
Employers should share the base minimum of data necessary for suppliers to accomplish their duties. To tighten data security further, employers could work with suppliers to identify vulnerabilities and address any cyber security risks.

Monitor your Supplier’s compliance
Strong supply chain risk management practices should be put in place by employers, who should also monitor supplier compliance. They might think about implementing a “one strike and you’re out” policy for suppliers who encounter cyberattacks or don’t adhere to regulations – to protect your business.

How can Cyber Insurance protect your business?

If your business becomes a victim of a Cyber Attack or Breach, Cyber Insurance can cover the cost of:

• An investigation of the cybercrime
• Recovering data lost in the security breach
• The restoration of computer systems
• Reputation damages
• Ransome demands from hackers
• Income loss if your business needs to close temporarily due to the attack

Cyber Insurance is popular amongst businesses that operate online, use third party suppliers and who send or store electronic data (especially those who hold personal data on their customers).

Any business of any size or sector can be a victim of a cyber attack and with Cyber Insurance, you can have confidence that cover is in place to help with the cost of recovery if the worst was to happen.

To learn more about how your business can benefit from Cyber Insurance and to put cover in place, get in touch with our commercial insurance specialists today.

Call on 01234 242900 or complete our quote form and we’ll be in touch with you as soon as possible.