Region 's firms leaving themselves open to cyber-attacks - RSM

Despite a significant increase in cyber-attacks, the number of businesses that think they are likely to fall victim has fallen, according to new research from RSM UK.

RSM UK 's 'The Real Economy ' report says more than a quarter (27 per cent) of middle market businesses have experienced a cyber-attack in the past year - up from one in five last year.

Yet despite the increased risk to the 2,611 middle market businesses in the West Midlands, the research found the number of businesses that felt they are 'very likely ' to fall victim to a ransomware attack has actually fallen significantly, from 34 per cent in 2021 to just 24 per cent this year.

Ransomware attacks, where hackers either steal or encrypt data, rendering it inaccessible, then hold a business to ransom for it, have escalated 100 per cent since the pandemic, according to the Information Commissioner 's Office (ICO).

They are expected to rise further in future, partly due to changing external events such as increases in inflation, volatile financial markets and the current Russia-Ukraine situation.

Leading researchers for the cyber economy, Cybersecurity Ventures predict that by 2031 ransomware will cost victims $265bn a year, with an attack expected to take place every 2 seconds, up from every 11 seconds in 2021.

There is also evidence that criminals like to return to the scene of the crime, re-visiting easy targets where they have carried out a successful attack, knowing defences are weak.

The Real Economy research found 17 per cent of businesses have been targeted with ransomware more than once, compared to only 11 per cent last year.

Sheila Pancholi (pictured), RSM UK 's Technology Risk Assurance partner, who is based in the West Midlands said: “The rapid shift to home working brought about by Covid meant businesses were initially more aware of the need for tighter cyber security measures as people logged on to work from home, often utilising their own unsecured devices.

“Now, as many middle market companies have already made an initial investment in protecting their business, there is a risk they mistakenly believe they have done enough and have now developed a false sense of security.

“In reality, cyber security is an ongoing process, as criminals are constantly evolving, developing new attack techniques and seeking out new vulnerabilities.

“To keep one step ahead of the cyber criminals, businesses need to ensure IT systems remain secure, and continually review cyber security measures to ensure they are as robust as they possibly can be. ”