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London, UK January 2021 – More than a third (34%) of businesses in the technology, media and telecoms (TMT) sector in the UK became victims of at least one cyber incident or breach, research has found

The findings are part of new analysis into the UK TMT sector by business insurer Hiscox, using data from the Hiscox Cyber Readiness Report 2020, now in its fourth year. 

Phishing incidents (53%) were the most prolific events among companies in the sector, while ransomware infections where the business was able to recover from a backup was the most frequent breach (23%).

According to analysis, the TMT sector lost a median of $39,600* over the last 12 months from cyber events – an indication of the large scale impact threats are having on the industry.

Despite this, TMT remains self-assured in its skills, with 67% of firms confident in their cyber readiness, and 85% equipped with a dedicated team or leader in cyber security.  

However compared to other sectors, TMT has been putting more into building cyber resilience through spend. Their priorities over the next 12 months involve investing in end user malware detection (54%), and achieving and maintaining regulatory compliance (54%).

Tech firms have also upped the amount of IT budget spent on cyber security by more than $1,000,000 in 2019, in comparison to the previous year. 

Stephen Ridley, Hiscox UK Cyber Underwriting Manager, commented: “Research shows that the UK tech sector is far from exempt when it comes to major cyber security threats. Proving that even for those sectors most equipped to deal with threats, vulnerabilities should never be overlooked. The industry is however, following best practice and building resilience through spending priorities and dedicated cyber roles. The findings are a reminder that firms should always look to shift cyber strategies and improve resilience capabilities.”

The following presents the most common incidents/breaches and spending priorities for the TMT sector: 

Most common types of incidents or breaches experienced:
Phishing incident (e.g., email, voicemail, SMS, postal)53%
Website-related incident (e.g., a vulnerability in your online services was targeted)42%
Ransomware infection (recovered from backup)23%
Ransomware infection (rebuilt data)23%

Business spending priorities over next 12 months:

Investing in end-user device malware detection54%
Achieving and/or maintaining regulatory compliance54%
Ensuring business partners/third parties comply with our security requirements53%
Improving the security of customer-facing services and applications52%
Addressing existing threat of vulnerabilities51%

About the table 

* The median cost of cyber events and figure of $39,600 was taken from the Hiscox Threat Ranking table which can be found on the cyber readiness link above. 

The findings from the Hiscox Threat Ranking Table were taken from its Cyber Readiness study focusing on UK data only. Risk scores were calculated using the UK average for each category as a benchmark, assigning points from 1-10 for percentage above or below this benchmark. Seventy is the maximum risk score that could be obtained and seven the lowest. The lower the risk score, the less the risk.

By Max Vince

Max Vince is an intelligent and creative marketer, business administrator and technology enthusiast. She loves to explore new technologies, learn about their capabilities as well as the potential impact they will have on our society in the future.

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