The threat landscape is becoming more expansive and intricate, covering everything from targeted ransomware to phishing. Understanding the cyber risks your business faces can be challenging, especially if you haven’t experienced an attack firsthand. As a result, many businesses may overlook the potential severity of these risks. However, 50% of UK businesses reported falling victim to a cyber-crime between 2023-2024¹, making it clear that managing this risk is no longer just an IT responsibility, but a key issue company-wide.

This article explains what cyber-attacks are, how they occur, and the steps we can support you with to protect your business.

What are cyber attacks?

A cyber-attack is a purposeful attempt to steal, expose, modify, disrupt, or damage data, applications, or other assets by unlawfully accessing a network, computer system, or digital device. According to the UK Government’s Cyber Security Breaches Survey 2024², 50% of businesses have reported experiencing a cyber security breach or attack within the past 12 months.

 Why do they happen?

There are three main categories, with each having varying motivations:

1. Criminal

Criminal cyber attackers are driven by financial motives, aiming to profit through data breaches or disrupting business operations. Cybercriminals often use ransomware to seize data or lock devices, demanding payment from the targeted company.

2. Personal

Disgruntled current or former employees can sometimes target their company. They may take money, steal sensitive data, or disrupt a company’s systems. This is known as a personally motivated attacker.

3. Political

Political cyber-attacks occur in forms such as ‘cyberwarfare’. Since Russia’s invasion of Ukraine, companies across the UK were advised to prioritise securing their online defenses. The National Cyber Security Centre (NCSC) reported that the UK and its allies uncovered the ‘Snake’ malware threat, a key element in operations led by Centre 16 of Russia’s Federal Security Service (FSB)³. The implant has been used to gather sensitive information from targeted entities, including government networks, research institutions, and journalists, and has been identified in over 50 countries globally.

What are common cyber attacks?

Ransomware and Data Breaches

According to IBM, ransomware is the second most frequent type of cyberattack, representing 17% of all incidents⁴.

The most valuable asset that most companies hold in 2025 is their data. Whether a company relies on their systems to trade day to day or holds sensitive customer data, Cyber criminals know all too well that most companies cannot survive a ransomware attack for long. Ransomware attacks can result from something as simple as an employee opening an attachment in a seemingly normal-looking email. For a sophisticated cybercriminal, this is enough for ransomware to be installed on your network, giving the hacker the ability to not only shut down your network but also to access and leak data you hold.

Cybercriminals have shifted from demanding small ransoms to infiltrating networks for months, collecting data to sell or leak, and then using it to demand larger ransoms up to hundreds of thousands of pounds. In January 2024, LoanDepot, a prominent mortgage lender, was targeted by a ransomware attack that compromised the sensitive information of around 16.9 million customers, including Social Security numbers and addresses. Due to the disruption of operations and other effects of the cyberattack, LoanDepot faced an estimated $27 million in expenses for response and recovery efforts⁵.

Funds Transfer Fraud / Social Engineering Fraud

Almost all companies invoice clients for goods or services and work with suppliers who invoice them in return. Electronic payments can be vulnerable to cybercriminals who intercept and redirect funds to fraudulent accounts. These attacks can be perpetrated in a number of ways including:

• Social Engineering – whereby a member of your accounts team might be tricked into paying funds into a fraudulent account, following an extremely convincing call from someone pretending to be the client/supplier and advising of a change of bank details.
• Invoice Fraud – whereby an invoice attached to an email can be intercepted along the way, with the details changed to that of a fraudulent account before being released, seemingly with no discernible changes.

How can risks be mitigated?

77% of Cyber claims involve employee error, so training your staff is a crucial element of your Cyber risk management⁶. Steps can be as simple as implementing procedures, such as call-backs to a known contact before accepting a change of bank details.

Other mitigation strategies include:

• Using reputable antivirus software and firewalls – this is your first line of defense, so maintaining a strong firewall and keeping your security software up to date is critical.
• Patching (updating) – regular patching of vulnerable software is necessary to help prevent infection that takes advantage of out-of-date systems with known vulnerabilities.
• Strong passwords and multi-factor authentication – this will also reduce your risk of Business Email Compromise (BEC), which is another prolific problem and can lead to downtime, reputational impact, and large financial loss.

The NCSC has provided further guidance with actions you can take to reduce the risk of falling victim to an attack whilst the threat level is heightened here.

We are here to help

Speak with one of our experts to access a complementary cyber vulnerability assessment report and to obtain a cyber quotation here.

If you’re not sure where to start when it comes to your cyber security strategy, or you would like a second opinion to ensure your data is as protected as possible, our sister company, Specialist Risk Insurance Solutions, offer a complimentary ‘KYND’ report, which will put you in contact with an expert team that will be happy to assess your risk.

Contact us

If you are interested in understanding how a Cyber policy could help protect your business and complement your business continuity planning, speak to a member of the team on 0208 236 5350.

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Sources

1. GOV UK: Cyber security breaches survey 2024 – GOV.UK
2. ibid. 
3. National Cyber and Security Centre: NCSC advises organisation to act following Russia’s attack on Ukraine
4. IBM: What is a cyber attack?
5. secureframe: 15 Recent Cyber Attacks & What They Tell Us About the Future of Cybersecurity
6. Khando, Khando, et al. “Enhancing Employees Information Security Awareness in Private and Public Organisations: A Systematic Literature Review.” Computers & Security, vol. 106, no. 1, 2021, p. 102267. Sciencedirect, https://doi.org/10.1016/j.cose.2021.102267

Small to medium enterprises (SMEs) are experiencing an increase in the costs of IT services. A study by Deloitte found that 59% of businesses outsource IT services to cut these costs¹, or they are managed internally by an individual or small team responsible for the business’s ‘digital estate’ and cybersecurity.

SMEs are still being disproportionately targeted by cyber criminals, with employees four times more likely to face a cyber threat than those at large organisations². Their motives include financial gain, disruption extortion, obtaining intellectual property, or to simply observe business interactions.

What should SMEs consider implementing to help their digital and cyber resilience?

It is highly recommended that SMEs and their employees develop a digital and cyber resilience strategy to ensure the necessary cybersecurity hygiene for operating in the digital domain. This strategy should be well practiced and actionable.

Lacking the fundamentals to reduce or mitigate potential cyber risks, regardless of business size, can determine whether a company contains the issue and recovers quickly, or suffers prolonged damage that hinders recovery.

Here are potential steps an SME can consider implementing (in no specific order):

• Conduct regular cybersecurity training and raise awareness of various social engineering tactics used by threat actors (e.g., emails, texts, phone calls, instant messaging).
• Regularly install security patches and enable system logs.
• Limit user permissions and controls.
• Develop an incident response, business continuity, and disaster recovery plan, supported by a monitoring tool (e.g., endpoint detection and response).
• Include an incident response retainer for proactive reviews of your environment, with support for cybersecurity incidents and threat intelligence to identify compromised user credentials on criminal forums.
• Harden the security configurations of systems, applications, and cloud services. Ensure proper role-based access, security controls, and Multi-Factor Authentication (MFA) across all platforms.
• Backup data, including offsite and separate storage, and regularly test restore capabilities. Ensure data is encrypted for added security.

In addition to having a robust response plan, every business should consider Cyber insurance. This coverage not only helps with indemnity for incurred costs, lost revenue, or third-party liabilities, but also provides access to expert breach responders who can help restore operations and protect the company’s reputation.

How we can help

Speak with one of our experts to access a complementary cyber vulnerability assessment report and to obtain a cyber quotation here.

If you’re not sure where to start when it comes to your cyber security strategy, or you would like a second opinion to ensure your data is as protected as possible, our sister company, Specialist Risk Insurance Solutions, offer a complimentary ‘KYND’ report, which will put you in contact with an expert team that will be happy to assess your risk.

Contact us

If you are interested in understanding how a Cyber policy could help protect your business and complement your business continuity planning, speak to a member of the team on 0208 236 5350.

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Sources 

1. US Global Outsourcing Survey: us-global-outsourcing-survey-2022.pdf
2. Global Threat Intelligence Report: Global Threat Intelligence Report January-June 2024 | Mimecast

In recent years, the UK motor sector has undergone a remarkable transformation, with rapid advances in technology which has led to the rise of connected cars, electric vehicles, and autonomous driving. However, despite this digitalisation, many long-standing operational methods remain, making the industry particularly susceptible to cyber threats.

In this article, we take a look at the top five cyber security threats that currently face the motor industry and the ways in which businesses can mitigate against them.

1. Data Breaches

The automotive industry collects and stores vast amounts of sensitive customer information, including personal details, financial records, and driving histories. This data is a prime target for cybercriminals, who exploit it for identity theft, fraud, and other illicit activities. Additionally, cyberattacks can compromise valuable intellectual property, such as pricing models and customer analytics, putting companies at risk of financial and competitive losses.

2. Ransomware Attacks

Ransomware attacks pose a significant threat to business operations by encrypting critical systems and demanding payment for their release. Beyond operational downtime, ransomware incidents also result in substantial financial losses due to ransom payments and data recovery efforts, and business interruptions.

3. Vehicle Hacking

With the rise of electric vehicles, cybercriminals are finding new ways to exploit vulnerabilities in vehicle software. Remote hacking can allow attackers to take control of critical functions such as braking, steering, and acceleration, creating severe safety risks. Additionally, modern vehicles collect and transmit large amounts of data, including location, driving behaviour, and diagnostics, making them attractive targets for data theft and misuse.

4. Phishing and Social Engineering

Cybercriminals frequently use phishing and social engineering tactics to manipulate employees and customers into disclosing sensitive information. Deceptive emails, fake websites, or phone scams can trick individuals into revealing login credentials, personal data, or financial details. These attacks can lead to data breaches, unauthorised transactions, and fraudulent transfers, posing a severe risk to both businesses and customers.

5. Supply Chain Vulnerabilities

The extensive network of suppliers in the UK motor industry means that a vulnerability in one supplier could compromise the entire supply chain. Smaller suppliers with less robust cybersecurity measures are often targeted, providing attackers with entry points to larger manufacturers.

Mitigating against cyber security risks

In order to safeguard their operations, protect customer data, and maintain a strong competitive position the motor sector, businesses should consider the following ways to mitigate against the risk of cyber-attacks:

• Strengthen IT infrastructure – invest in strong cybersecurity measures such as robust firewalls, intrusion detection systems, and multi-factor authentication.
• Employee cybersecurity training – ensure your team have access to regular cybersecurity focused training with a variety of social engineering techniques, such as phishing attacks and cybersecurity.
• Cyber incident response and recovery plans – Develop and regularly update a cyber incident response plan to ensure you know what to do in the event of an attack.
• Compliance with data protection and privacy measures – Ensure that your business is compliant with GDPR and other relevant regulations to protect customer data.
• Invest in cyber insurance – As well as providing protection in the event of a cyber-attack, a cyber insurance policy goes further and provides access to specialist assistance with advice about the payment or non-payment of ransomware demands and the costs associated with responding to regulatory bodies and IT forensic investigations.

By implementing these measures, businesses in the motor sector can significantly reduce their exposure to cyber threats while ensuring the safety and security of their vehicles, customers, and operational infrastructure.

To find out more about cyber insurance, please get in touch with a member of the Hamilton Leigh team on 0208 236 5350 or email info@hamiltonleigh.com

Any business that relies on computer systems to store or transfer data is exposed to cyber risks. In today’s digital world, this is most businesses. With more businesses than ever investing in Cyber insurance, we have outlined five things to consider if your business has not purchased this type of cover

If your business has never been the victim of a cyber-attack, it can be difficult to comprehend how vulnerable your business could be. However, as a specialist insurance broker, we are here to help you understand the digital risks your business is exposed to so that you can take the appropriate action.

We often hear from clients that they are unsure of the digital risk their business faces and therefore, we have outlined a couple below with advice from our expert team:

“We invest in IT security, so we don’t need Cyber insurance…”

• Whilst investing in IT security is important, it is likely that your business will still be exposed to cyber risks as cyber threats are continually evolving to bypass these security measures.
• People are the weakest link in your IT security chain. Most cyber-claims are as a result of an easily preventable human error.
• Cyber insurance is a cost-effective way to get access to risk management tools including employee training programs, but it also provides you with an expert response team and covers all financial losses in responding to a cyber-attack.

“We don’t collect any sensitive data, so we don’t need Cyber insurance…”

• Two of the most common cyber-claims are not related to privacy. Fund transfer fraud is often carried out by criminals using fraudulent emails to divert the transfer of funds from a legitimate account to their own.
• Secondly, ransomware can cripple any organisation by freezing or destroying your business-critical computer systems.
• Neither of these types of incidents would be considered a data breach however, both can cause severe financial damage and are covered under a Cyber policy.

“Cyber-attacks only affect big businesses. We’re too small to be a target…”

• High profile cyber-attacks that have affected large organisations have raised awareness of the growing threat of cyber-crime through the media however, surveys conducted by cyber security organisations suggest that may small business owners are operating under a false sense of security because of this.
• As larger organisations get serious about cyber security, small businesses are becoming increasingly attractive targets for cyber criminals – and the results are often devastating for small business owners.
• Not only does insurance cover the costs involved in responding to a cyber-crisis, but it also provides you with instant access to a number of technical and legal experts who you may not have in-house.

“Our other insurance policies cover Cyber risks…”

• While there may elements of cover within traditional insurance policies, it tends to be partial cover at best, falling very short of what is covered under a standalone Cyber policy.
• Property insurance policies are designed to cover your bricks and mortar, not digital assets.
• Crime policies rarely cover social engineering scams (without onerous terms and conditions) which are increasingly conducted by cyber criminals and result in a huge source of financial loss for businesses.
• Generally, Professional Liability policies do not cover the first party costs associated with responding to a cyber event.
• A standalone Cyber insurance policy provides you with access to dedicated cyber claims experts who are trained to get your business back up and running with minimal disruption and financial impact. Without a specialist team, it could take your business weeks or even months to return to business as normal.

We are here to help

With extensive experience in the digital risk’s businesses are exposed to, we are well placed to support and protect your business.

For more information on how your business can benefit from Cyber insurance, get in touch with our specialist, Jason Cohen:

JasonCohen@hamiltonleigh.com