As ransomware attacks surge, here’s why tech companies should protect themselves now

A hacker working at their laptop

In the past few years, the UK’s tech industry has seen very strong growth as the economy becomes increasingly digitalised. Data from the Digital Economic Council shows that this important sector grew by 42% between 2018 and 2022, and is now valued at more than £762 billion.

While this is a great reflection of the talent and work ethic that the tech industry has to offer, their success has also attracted the attention of criminals.

According to a report published in UK Tech News, the number of ransomware attacks affecting businesses more than doubled between 2020 and 2021.

When building a successful business, concerns about cybercriminals are the last thing you need, so read on to find out why you should protect yourself now.

The number of ransomware attacks doubled from 2020 to 2021

The UK’s tech sector has enjoyed strong growth in recent months, thanks to the hard work and innovativeness of companies. In fact, according to Sky News, the industry has raised more than £12.4 billion of funding in the first five months of 2022 alone.

Due to its success, the sector has become an increasingly lucrative target for cybercriminals, who deploy a variety of methods to extort cash out of hard-working businesses.

One increasingly common threat that companies face is the use of ransomware. This is essentially a type of malware which encrypts a victim’s files and prevents access to them until they pay a hefty fee.

According to a recent report published in City A.M., the number of ransomware attacks reported to the Information Commissioner’s Office increased from 326 in 2020 to 654 in 2021. As the tech sector continues to grow, it’s likely that this number will rise further.

A cyberattack could cost your business a considerable amount of money

There are essentially three main ways that a ransomware attack could affect your business. These are:

Loss of cash

According to a report by the Department for Digital, Culture, Media and Sport, the average cost of a cyberattack for a small business in 2021 was £4,200. This is a substantial amount of money, particularly if your company is still establishing itself and so doesn’t have large cash reserves.

Loss of data

If your business is the victim of a cyberattack, criminals could steal sensitive data belonging to your employees and clients. This can have serious consequences for them, especially if the information is financial in nature.

Damage to your professional reputation

If your company is held to ransom by a cyberattack, your team may not be able to work for several days, which could cause you to miss an important deadline. This may then damage your professional reputation and lead to a loss of future business.

After all the hard work you’ve put in to build your company, the thought of falling victim to a major cyberattack can seem like the stuff of nightmares. That’s why, if you want to keep your business safe, taking out protection can be invaluable.

If you fall victim to an attack, Cyber and Data Insurance can help to cover the cost of fixing your compromised systems. Furthermore, it can give you access to specialists who can recover your stolen data, as well as to public relations teams if you suffer reputational damage.

While your staff may take all proper precautions with their online safety, it only takes one small mistake to fall victim to cybercriminals. That’s why it can be a huge weight off your mind to know that you are properly protected against this threat.

A broker can help to find the protection that’s right for your company’s needs

At a time when many businesses are concerned about the looming recession and how it could affect them, worries about data breaches are the last thing you need. Despite this, a study by Aviva found that 86% of small companies don’t have any cyber cover in place.

If you want to be able to rest easy, knowing that you have the right protection for your needs, working with an expert can really benefit you.

We can scour the market on your behalf to compare different types of protection, helping to find the one that suits your company’s individual circumstances. We can also make sure that you aren’t paying more than you need to for your cover, so you don’t have to worry about the cost of your premiums.

Knowing that you’ve got the right protection in place can be a huge weight off your mind, enabling you to focus on managing and growing your company effectively.

Get in touch

If you want to know more about how to stay safe from cybercrime, we can help. Email or use our contact form to request a callback from our team.

Posted: July 14, 2022 | Categories: Creative Insurance News

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