Cyber incidents have risen by a quarter for UK businesses over the past year, amounting to an average of about 30 incidents per company, according to a new joint report from iomart and Oxford Economics: State of Cyber Security in the UK 2023.

The report, which surveyed 500 executives from UK businesses revealed that there is a concerning surge in cyber threats despite investment in cyber protection. The investments amounted to about £40,000 annually per organisation, to carry out activities such as vulnerability assessments, penetration testing, and red team engagements. 

Despite this, more than a quarter (27%) of organisations believe their budgets are still insufficient to provide protection against the evolving threat landscape. Meanwhile, seven out of ten business executives surveyed reported an increase in premiums over the last two years. 

The mixture of an already insufficient budget, and the rising cost of premiums have led to more vulnerabilities in companies’ cybersecurity strategies. 

“It is clear the threat of cybercrime is rising, but there’s a lack of confidence in organisations’ abilities to protect themselves against it,” said Lucy Dimes, CEO at iomart.

“There are many factors at play that are influencing this, from rising energy costs and increased insurance premiums to skills shortages and staff burnout, which are causing huge challenges for businesses.”

One challenge for businesses, according to the report, is the struggle to integrate security into business processes. Only 37% of respondents said that security is embedded into every aspect of their operations, meanwhile 14% admitted that security issues are only addressed on an ad hoc or as needed basis. 

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Another significant challenge is the cybersecurity skills shortage. According to the government, the industry needs roughly 11,200 people to fill the skills shortage. At the same time, 30% of cyber staff report burnout, adding another layer to the skills shortage, which is retaining talent you already have. 

However, optimism can be gleaned from the report, as it reports 38% of businesses believe that artificial intelligence (AI) and machine learning (ML) will play a significant role in cybersecurity trends in upcoming years, particularly for email screening and contextual analysis. 

“With effective strategies being developed and new technologies such as AI being embraced. Working alongside trusted partners can also ensure companies have adequate cyber strategies tailored to their business needs and challenges,” said Dimes.