London businesses face rising cyber threats despite leading UK preparedness

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Despite UK Government figures revealing that 74% of mid-to-large UK businesses have experienced cybercrime, a new survey from Resilience, in partnership with YouGov, highlights a concerning gap in understanding cyber risk as a financial threat.

The findings point to a critical need for businesses—particularly those in London—to reframe cyber threats as not just IT issues but as significant financial risks. London businesses, while leading the UK in cyber preparedness, remain disproportionately affected by attacks.

Over half (51%) of London firms reported outages lasting 12 hours or more due to breaches in third-party vendor systems—higher than the national average of 47%.

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Furthermore, 67% of London firms filed cyber insurance claims, compared to the UK average of 57%. Data breaches remain the leading cyber risk for UK business leaders, with 72% identifying them as their primary concern. In contrast, only 47% expressed significant concern about ransomware, despite the NCSC recognising it as the UK’s most severe cyber threat.

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This perception gap is costly. Ransomware accounted for over 80% of financial losses reported by Resilience clients in 2023–24, far outweighing the impact of data breaches.

However, breaches draw stricter regulatory scrutiny, with GDPR requiring incidents to be reported within 72 hours—a burden that further underscores the need for effective management.

Encouragingly, London firms are more likely than others to track cyber risks quantitatively, with 64% maintaining detailed risk registries compared to the national average of 54%. These tools help businesses better understand the financial impact of attacks, though gaps persist in translating preparedness into reduced risks.

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“Cyber risk has become an undeniable reality for businesses of all sizes, yet our findings highlight a concerning gap in understanding and preparedness, particularly in how leaders assess and manage these risks as financial risks,” said Vishaal ‘V8’ Hariprasad, CEO and co-founder of Resilience.

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“Traditional approaches are no longer enough,” Hariprasad added. “Organisations must embrace a financial lens to improve their cyber decision-making and achieve resilience. Only by bridging these gaps can businesses stay resilient in the face of growing threats.”

Third-party vendor systems remain a significant vulnerability. While 83% of business leaders claim to be familiar with their vendors' systems, only 35% believe vendor due diligence is effective in mitigating cyber risks. Larger businesses tend to perform better in this area: 43% of firms with annual turnovers above £750m consider vendor oversight effective, compared to just 24% of those with turnovers below £250m.

The resurgence of ‘big-game hunting’—where cybercriminals target larger enterprises—has left growing mid-sized firms particularly vulnerable. These companies often lack the resources or budgets needed to counter sophisticated third-party attacks. Notably, 34% of companies with turnovers of at least £1bn reported no significant disruptions from vendor breaches, demonstrating the advantage of robust cyber strategies.

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The financial cost of cybercrime continues to rise. The UK Government estimates that breaches cost mid-to-large businesses an average of £10,830 last year—a figure likely higher for London firms operating in a globally connected and high-value economy. With the global cost of cybercrime projected to surpass $20 trillion by 2026, the pressure to act is intensifying.

“By quantifying and modelling potential impacts, investing in effective mitigation strategies, and ensuring return on investment on cyber insurance, business leaders can receive real value in countering cybercrime,” Hariprasad said.

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