A new report from Grant Thornton has revealed a sharp rise in cyber crime in the past 12 months, as well as a need for greater awareness to protect against online attacks.

The International Business Report (IBR), a survey of 2,500 business leaders in 37 economies worldwide, found that almost a quarter of businesses (21%) have faced a cyber attack in the last year, up from 15% the previous year.

The research shows the proportion of surveyed businesses suffering cyber crime in the European Union had soared from 19% to 32%.

The IBR also revealed the diversity in types of attacks, with damage to business infrastructure the most common form, cited by 22% of firms surveyed. Blackmail and extortion is more common that the theft of customer financial details or intellectual property, the report finds.

Worryingly, 13% of surveyed businesses which had suffered cyber attacks only realised more than a week afterwards and in 4% of cases it took more than a month.

Richard Ratcliffe, a director at Grant Thornton in the Isle of Man, said: ‘Detailed research and expert analysis by our colleagues around the world has shown that cyber crime is on the increase with more and more businesses falling victim and the nature and sophistication of the attacks changing.

‘We might assume firms in developing economies are more likely to fall victim and that data theft is the primary intention, but the IBR shows developed economies are experiencing a sharp increase in incidents and that, in fact, damaging business infrastructure is the most common form of attack and blackmail is more prevalent than stealing data.’

He added: ‘The Isle of Man is far from immune from this type of crime and businesses here must ensure they are aware of the threat and protected as far as possible against attack. Hopefully the insight offered by this IBR report, and the analysis offered by Grant Thornton’s cyber security experts, will assist Island firms reduce the chances of becoming victims of this growing threat.’

Commenting on the IBR findings Paul Jacobs, Global leader – cyber security at Grant Thornton, said: ‘Whatever form cyber attacks come in, for businesses today it’s a question of when rather than if; building cyber resilience must therefore be a company-wide priority. Strengthening defences to prevent attacks occurring is vital but it doesn’t end with pulling up the drawbridge. Firms which overlook being mobilised and ready to respond to attacks after they have occurred do so at their peril. That preparedness needs to be multifaceted, too. Simply guarding against one form of attack won’t cut it.

‘There needs to be urgency and proactivity among business leaders as they formulate plans to deal with cyber-attacks. One critical element is understanding the value of the data they hold, and making sure the most important data - that which would cause most damage if compromised - is properly protected.’

He added: ‘Too many businesses are spotting cyber-attacks too late. That is a real danger. They may have strengthened firewalls or obtained cyber insurance, but if attacks are not spotted quickly, firms could well find circumstances are out of their control. It will take investment to minimise damage when the inevitable occurs. Knowing when you’ve been breached is an essential part of that. Businesses that cannot identify attacks promptly run the risk of heavy financial consequences. Damaging reputational fallout, in the shape of eroded trust among customers and other stakeholders, is also a real possibility.’

Grant Thornton has recently enhanced is own already high levels of cyber security by introducing new minimum standards for member firms throughout its global network, including in the Isle of Man. For more detail on the findings of the International Business Report contact Grant Thornton on 639494.

Photo - Richard Ratcliffe, Grant Thornton Isle of Man.