UK retailers in crosshairs of cyber-criminals but insurance take-up remains low
UK retailers are on high alert as new research reveals that over half of those surveyed have fallen victim to cyber-crime. A survey conducted by NFU Mutual shows that 53% of retailers reported experiencing cyber-crime, prompting the commercial insurer to urge businesses to enhance their security measures.
In the past year alone, 10% of retailers reported cyber-crime incidents, leading many to review and upgrade their IT security protocols. According to the survey, 22% of respondents increased their IT security, and a fifth completed training on IT security and online safety. Additionally, 17% installed firewalls, antivirus software, or other protective measures for their networks.
Despite these investments, only 11% of retailers surveyed had taken out cyber insurance in the past year. NFU Mutual emphasized the importance of considering the financial and operational impact of potential cyber-attacks.
James Trevis, NFU Mutual’s cyber specialist, highlighted the growing threat: “Cyber-crime is sadly an ever-increasing threat to our industries, so we’re urging bosses and employees to stay vigilant and do all they can to avoid falling victim. Retailers utilize digital technology in the everyday running of their businesses and, in doing so, are always potentially exposed to cyber threats. The ramifications can be extremely serious – from loss of income, legal liability, reputational damage, and financial fraud.”
The survey identified customer fraud as the most common crime, affecting nearly 24% of respondents, followed by phishing scams (21%), data theft or breaches (15%), and malware or viruses (13%).
NFU Mutual highlighted several at-risk digital technologies for retailers, including computers and software for communication and sales, servers for storing customer and employee data, websites for business promotion and e-commerce, online banking, and internet-connected devices like office networks and CCTV.
