United Kingdom Risk Climate: Cybercrime Hit 1.5m UK Businesses In 2023

More than 1.5 million UK businesses fell victim to some form of cybercrime last year at a cost of more than £30.5 billion, according to a new study from Beaming, an internet service provider for businesses.

The total cost of cyber security breaches was 138% higher than Beaming’s £12.8 billion estimate for 2019, when it last surveyed businesses about cybercrime.

Beaming’s latest study ‘The Price of Insecurity‘ has been published recently was completed by the research consultancy Censuswide and reveals that more than a quarter (27%) of businesses fell victim to cybercrime in 2023.

Key findings include:

Cyber security breaches cost UK businesses £30.5 billion last year, 138% more than in 2019

Small businesses experience a 42% increase in breaches and see cyber crime costs rise by 396%

Cyber crime rates were highest in Wales, Yorkshire and the Humber, and the South West of England

The average cost of an incident, including expenses for replacing IT assets, recovering data and financial penalties, was £5,500.

Although cybercrime rates declined for the largest (250+ people) and very smallest (one person) businesses, they increased in all SME segments. Small businesses employing between 11 and 50 people experienced the steepest rise in victims (up 42%) and costs (up 396%) between 2019 and 2023.

Managing Director of Beaming, Sonia Blizzard commented “While large businesses are proving more resilient to cybercrime, the cost of breaches is soaring, and SMEs are being hit harder than ever before. Businesses are investing in training and technology but they’re under sustained attack. So as the use of technology helps business to grow, the investment in cybersecurity training also needs to be maintained.”

Phishing, the use of deceptive emails, messages, or links to websites designed to trick people into performing actions that would expose a business to a breach, was the most common way companies succumbed to cybercriminals last year. This form of attack claimed 679,000 business victims in 2023.

Beaming’s study shows businesses of all sizes have increased cybersecurity investments. Most employers now provide cybersecurity training, and the adoption of sophisticated tools such as Network Perimeter Firewalls, site-to-site VPN technology and Unified Threat Management devices has also accelerated.

Cybercrime rates were highest in Wales, Yorkshire and the Humber, and the South West of England, where Beaming’s study indicates over half of businesses fell victim to in 2023. The cost was steepest in London. Firms located in the capital lost £7.1 billion because of breaches in 2023.