Finance businesses struggle to balance security budgets as cyber incidents soar
UK finance businesses have experienced on average 32 cyber incidents over the last twelve months, 7% higher than the national average, according to a new report out today.
Despite over a third financial of organisations spending more than £50,000 a year on cyber protection such as vulnerability assessments, penetration testing, and red team engagements, the report found that 23% think their cyber security budget is inadequate to fully protect them from growing threats.
The data comes from iomart and Oxford Economics’ ‘State of cyber security in the UK 2023’ report, which surveyed 48 finance executives, as part of a wider survey of 500 UK businesses.
It found that a quarter (25%) of businesses in the finance sector agree that budget constraints continue to be one of the biggest barriers for improved cyber security, while 46% have seen an increased frequency of threats from bad actors over the past two years.
In fact, the rising cost of cyber insurance premiums is one of the biggest financial outlays, with 73% of finance businesses noting a rise over the last two years.
With the cost of remediation and other business expenses, such as energy, on the rise, stretched budgets are causing blind spots in companies’ cyber strategies.
UK businesses overall
Of the 500 businesses surveyed, only 37% of respondents have security embedded into all their business processes and functions, while 14% admitted that security is only addressed on an ad hoc or as-needed basis.
Meanwhile during the Covid-19 pandemic, 41% of organisations were forced to sacrifice cyber security to keep the lights on, including 39% of finance businesses.
The report also found that a lack of key skills remains one of the main concerns to tackling rising cyber threats. So much so that 30% of cyber staff admit to currently facing burnout.
This pressure also means that less than half of companies are confident in their ability to handle the biggest threats facing organisations, including phishing (56%) and malware (55%).
Emerging technologies
Despite these challenges, the finance sector is optimistic about the role of nascent technologies such as AI and ML.
A third (33%) of believe the use of AI and ML will be a major trend in cyber security over the next two years, particularly to support with email screening (58%) and contextual analytics (52%).
Commenting on the report, Lucy Dimes, CEO of iomart said: “Our latest security report with Oxford Economics is a temperature check on the cyber challenges businesses face, including those in the finance sector.
“We are living in an increasingly digitised world, where it is commonplace to use our devices for financial transactions. Given the financial sector’s wide reach into the lives of businesses and consumers across the UK, it is perhaps no surprise that it has become a target for cybercriminals. And while it is clear that the threat of cybercrime is rising, there’s a lack of confidence in organisations’ abilities to protect themselves against it.
“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.
“While this may be the case, there are ways to relieve these pressures, 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.”
The ‘State of cyber security in the UK 2023’ report surveyed 500 executives from a range of industries — most with more than 1,000 employees — all based in the UK.
To find out more, you can view the full report online here: Security’s Lament: The state of cyber security in the UK | iomart
