The cost of dealing with a cyberattack doubled last year

A man standing in front of a rack of servers inside a data center
(Image credit: / Gorodenkoff)

New research from Dell has claimed the cost of global cyberattacks reached a new high in 2023, topping out at $1.41 million per attack, up from $0.66 million in 2022.

In 2023, almost half (48%) of UK-based organizations reported suffering either a cyberattack or incident that prevented access to company data.

The loss of data and systems outages were mainly caused by hardware failures, which was responsible for over half (51%) of all data access issues in the UK.

An everyday occurrence

Disruption to a business' ability to function should be expected for many businesses going into 2024, as 90% of global respondents stated that they experienced some form of IT disruption last year.

In terms of cyberattacks, over half (55%) of all global respondents reported that the first point of intrusion into their network was through malicious links in spam or phishing emails, hacked devices and stolen credentials.

Generative AI may be here to save the day, with 52% of those across the globe saying that integrating the technology into their cybersecurity could provide a boost in their ability to prevent intrusions and incidents. However, while it could aid in bolstering their defenses, 88% stated that it would create more data that needs to be protected and also increase the value of the data, requiring increased protection.

Worryingly 74% of organizations believe that in the event of a ransomware attack, they would be able to simply pay the ransom and retain access to their data. In the UK, organizations are slightly more skeptical about whether an attacker would return their data, with just over half (54%) of respondents believing their data would be returned if a ransom was paid.

There are also worrying implications for ransomware insurance, with only 28% of global respondents receiving a full reimbursement despite their organization having a ransomware insurance policy. 93% of organizations surveyed had a ransomware insurance policy, but the caveats surrounding their policies are hindering their reimbursement claims, with 57% having to prove ‘best practice’ threat prevention, and 40% stating their certain scenarios would void their claim.

Rob Tomlin, Vice President, UK Channel, at Dell Technologies said, “Nearly half of UK organisations suffered a cyberattack or incident that prevented access to data last year, and many now recognise the significant new cybersecurity challenges posed by GenAI.

"It can be a powerful tool to strengthen organisations' cyber posture while simultaneously creating new attack vectors and increasing the risk of cyber attacks. This duality represents significant implications for the channel, with the partners that develop the right skills and resources to assist their customers in responding to these challenges ensuring themselves a substantial competitive advantage”

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Benedict Collins
Staff Writer (Security)

Benedict Collins is a Staff Writer at TechRadar Pro covering privacy and security. Before settling into journalism he worked as a Livestream Production Manager, covering games in the National Ice Hockey League for 5 years and contributing heavily to the advancement of livestreaming within the league. Benedict is mainly focused on security issues such as phishing, malware, and cyber criminal activity, but he also likes to draw on his knowledge of geopolitics and international relations to understand the motives and consequences of state-sponsored cyber attacks.

He has a MA in Security, Intelligence and Diplomacy, alongside a BA in Politics with Journalism, both from the University of Buckingham. His masters dissertation, titled 'Arms sales as a foreign policy tool,' argues that the export of weapon systems has been an integral part of the diplomatic toolkit used by the US, Russia and China since 1945. Benedict has also written about NATO's role in the era of hybrid warfare, the influence of interest groups on US foreign policy, and how reputational insecurity can contribute to the misuse of intelligence.

Outside of work Ben follows many sports; most notably ice hockey and rugby. When not running or climbing, Ben can most often be found deep in the shrubbery of a pub garden.