The cost of dealing with a cyberattack doubled last year

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

“It can be a powerful tool to strengthen organizations' 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 a substantial competitive advantage.”.