Nevertheless, these results have continued to improve between 2019 and 2020. Specifically, it requires them to enact basic technical controls across five areas: boundary firewalls and internet gateways, secure configurations, user access controls, malware protection, and patch management (applying software updates). While half of all businesses (50%) and charities (49%) say they have undertaken audits covering cyber security risks, there is considerable variation in what this means in practice. Two per cent of businesses and three per cent of charities mention the GOV.UK website. Nevertheless, they continue to show that specific cyber security policies are taken on only by a very small minority of organisations. I want to recieve updates for the followoing: I accept that the data provided on this form will be processed, stored, and used in accordance with the terms set out in our privacy policy. These have often resulted in the virtual destruction of IT systems, leakage of massive chunks of customer data and an ongoing identity theft crisis. Decisions around cyber insurance were often strongly influenced by insurance brokers. In September 2020, hackers gained access to Telegram messenger and email data of some big names in the cryptocurrency business, in the attack most likely aimed at obtaining cryptocurrency. The typical (median) long-term cost estimates, even for breaches with material outcomes, are £0. The vast majority of businesses (90%) and charities (89%) restore operations from their most disruptive breach or attack within 24 hours. Figure 4.10: Percentage of organisations that have the following kinds of documentation. These cyber threat actors will often masquerade as trusted entities. The findings in this chapter are not comparable with those from the 2016 survey, due to significant changes in the types of breaches or attacks being recorded from 2017 onwards. For the communications aimed at organisations of different sizes – which were asked about for the first time this year – we find that: In advance of the qualitative interviews, we asked interviewees to look at various existing government guidance to gather some general feedback. For example, around a third of the medium businesses (33%) and large businesses (35%) that identify any breaches or attacks pick out three or more categories from Figure 5.2 (vs. 13% overall). As Figure 4.5 indicates, the vast majority of businesses and charities have a range of basic rules and controls in place, including around software updates, malware protection, restricted IT admin rights, firewalls and password policies. On the other hand, they were sometimes seen as less relevant for staff outside technical roles. Both finance and insurance firms (70%) and information and communications firms (53%) are more likely than average (37%) to have board members with a cyber security brief. Ipsos MORI and DCMS would like to thank all the organisations and individuals who participated in the survey. An industrial control system (ICS) is a digital control system used to control industrial processes such as manufacturing, raw materials and energy production, distribution and telecommunications. the loss of files, money or other assets). In these cases, 41 per cent of businesses take a day or more to recover, or say they have not yet recovered at all (vs. 9% of businesses having any kinds of breaches or attacks, including those without outcomes). The term “supplier risks” does not necessarily convey the entire digital ecosystem that organisations are part of. We’d like to set additional cookies to understand how you use GOV.UK, remember your settings and improve government services. The qualitative survey findings offer more nuanced insights and case studies into how and why businesses and charities hold attitudes or adopt behaviours with regards to cyber security. It is more common for larger businesses to say that cyber security is a high priority (92% of medium businesses and 95% of large businesses, vs. 80% overall). Recent cyber attacks. Charities follow the same pattern, with 57 per cent of high-income charities (with incomes of £500,000 or more) recording any breaches or attacks. The data have been weighted to be statistically representative of these two populations. For medium and large firms, this average cost is higher, at £5,220. The business findings are in line with those in 2017 (when the question was first asked). Even here, this is not a specific cyber security insurance policy in most cases (only 17% of these firms have a specific policy). In 2020, a fifth of these charities (22%) say they experience breaches at least once a week. Figure 5.9: Changes over time in average (mean) costs for the most disruptive breaches with material outcomes. The government-endorsed Cyber Essentials scheme enables organisations to be independently certified for having met a good-practice standard in cyber security. Just recently, in one of the largest hacks in more than five years, email systems were breached at the Treasury and Commerce Departments. This chapter explores the nature, extent and impact of cyber attacks and other cyber security breaches on organisations over the past year. This includes accidental breaches, as well as ones perpetrated intentionally. Israel announced that two cyber attacks had been carried out against Israeli water infrastructure, though neither were successful July 2020 . The quantitative survey shows that over half of businesses (54%) and around half of charities (51%) have actively sought information or guidance on cyber security from outside their organisation in the past year. The qualitative research provides valuable insights to help inform policy and communications in these areas: • the current communications around supplier risks and reporting of breaches are often confusing for organisations. Figure 3.3: How often directors, trustees or other senior managers are given an update on any actions taken around cyber security. Michael Hill Editor , Infosecurity Magazine. They were infected by malware that led to their mail server sending fake invoices to their clients. If this category had been included, we expect that the proportion of businesses and charities citing any listed outcome would have been c.4 to 5 percentage points higher, based on past trends. In total, 83 per cent of this group of businesses (there are too few charities to report) say these sources were useful, which is in line with previous years. The vast majority of businesses (80%) and charities (74%) say that cyber security is a high priority for their senior management. • formally logging incidents. We take a look at the biggest cyber-attacks perpetrated in the UK and their respective impact on both businesses and citizens. For charities, there is also a downward trend for each of these measures since 2018 although the changes are not statistically significant. In the qualitative interviews, it was evident that many organisations had not discussed supplier risks before. The main recurring reason that organisations gave for reporting a breach externally (beyond any IT or cyber security providers) was if it resulted in a significant loss of internal data or money. Direct costs, as defined in the survey, include the cost of: • staff being prevented from carrying out their work, • lost, damaged or stolen outputs, data, or assets. These interviews highlight a set of external actors – IT providers, accountants, banks, insurance brokers and government organisations – that can play an influential role in affecting behaviour around cyber security. In larger organisations, these individuals may not be senior managers, and their answers will reflect their own perceptions of their senior management teams. This covers topics such as: We also cover the extent to which organisations are meeting the requirements set out in government-endorsed Cyber Essentials scheme and the government’s 10 Steps to Cyber Security guidance. ↩, This again excludes businesses that say they update senior managers each time there is a breach. Copy link . Ransomware attacks cost the healthcare industry $20.8 billion in downtime in 2020, which is double the number from 2019. Table 4.1 below brings these findings together. There is also little variation by size on this – just two per cent of large businesses specifically mention it. Password security was found to be particularly weak, with 66% of firms not requiring remote workers to use a password manager or implement any authentication methods beyond a password. Financial audits by external accountants generated an annual report that would be discussed at a board level. The overall effective base size was 763 for businesses (vs. 1,019 in 2019) and 181 for charities (vs. 211 in 2019). These exclusions are consistent with previous years, and the survey is considered comparable across years[footnote 2]. It is important to note that these trends may have been affected by the omission of denial-of-service attacks from this year’s survey script. Interviewees tended initially to frame supplier risks very narrowly, in terms of IT providers, internet service providers and other digital service providers. • the proportions of businesses and charities investing in threat intelligence are each slightly higher than in 2018 (by 3 and 5 percentage points respectively). in finance teams rather than cyber teams) and that different teams are not joined up in this regard. Often, they were part of much broader annual financial audits led by external accountants, where the accountant would cover cyber risks as part of an overall assessment of the organisation’s sustainability. ↩, These aggregated results (for organisations updating managers at least annually or quarterly) across this section exclude the four per cent of businesses and three per cent of charities that say they update senior managers each time there is a breach. Externally only in a quarter of cases ( 27 % in 2019.... 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