Following the news about hack attacks from China have been targeting UK firms. Graeme Newman, Chief Innovation Officer at CFC Underwriting provides an insight below on the potential devastation these attacks can cause to organisations, in particular SMEs who may be more at risk of cyber-crime of this kind.
Graeme Newman, Chief Innovation Officer at CFC Underwriting:
“While one might expect nation-state actors to target large corporations for their trade secrets, few people think about the collateral damage that comes along with these events. What the recent news about China’s cyber-attacks reveals is that SMEs aren’t impervious to nation-state hack attacks. In fact, if you are a small business who deals with larger clients, you could be seen as the weakest link in the chain, giving hackers an easy way to access sensitive information about their true, more powerful targets.
Therefore, SMEs may at greater risk when facing cyber-attacks of this kind. This is reinforced by what we’ve seen as an insurer; last year, 90% of our cyber claims by volume came from businesses with less than £50m in revenue, highlighting just how vulnerable SMEs are to cyber threats. Businesses of all sizes should be investing in their overall security and training staff accordingly, otherwise they risk falling victim to incidents that could have a devastating impact on their balance sheet and reputation.”