NI Firms Not Taking Cyber Security Seriously Enough - IoD

Northern Ireland businesses are not taking cyber security seriously enough, the Institute of Directors (IoD) has warned.

In a recent report, 'Cyber Security: Underpinning the Digital Economy', supported by Barclays, the IoD revealed that UK companies were keeping quiet even though half of attacks resulted in interruption of business operations. The scale of the threat should not be underestimated, the business group added, with over seven in 10 UK firms saying they had been sent bogus invoices via email.

The survey of nearly one thousand IoD members across the UK showed a worrying gap between awareness of the risks and business preparedness. Whilst 84% of Northern Ireland business leaders said that cyber security was important, 42% of local organisations do not provide cyber awareness training for staff

Official efforts to tackle cybercrime seem to be failing to get through to businesses, with nearly 42% of Northern Ireland's IoD members who responded stating they’d never heard of Action Fraud Aware, the UK's national reporting centre for fraud and internet crime.

The growing threat of breaches will create a 'cyber paradox', the IoD said, meaning that although business will increasingly take place online, firms will no longer feel confident in the encryption protecting sensitive information when it is transferred. This could lead to companies going back in time, and resorting to old-fashioned methods for sending important data. Currently, 67% of the Northern Ireland IoD members who responded to the survey use a third part outsourcer or cloud provider to store data.

Professor Richard Benham, author of the report, said: "Cybercrime is one of the biggest business challenges of our generation and companies need to get real about the financial and reputational damage it can inflict. The spate of recent high-profile attacks has spooked employers of all sizes and it is vital to turn this awareness into action. Customers and partners expect the businesses they deal with to get it right.

"As attacks become more prevalent and increasingly sophisticated, businesses need to defend themselves, know how to limit damage, and be ready to respond quickly and comprehensively when the inevitable happens. No shop-owner would think twice about phoning the police if they were broken into, yet for some reason, businesses don't seem to think a cyber breach warrants the same response.

"Our report shows that cyber must stop being treated as the domain of the IT department and should be a boardroom priority. Businesses need to develop a cyber security policy, educate their staff, review supplier contracts and think about cyber insurance."

Joanna McArdle, Director, Barclays in Northern Ireland, said: "Businesses must recognise the threat that cybercrime can pose to them, their reputation and subsequently their bottom line. Given the range and volume of financial interactions that are conducted online, the issue of cyber security has never been more important to Northern Ireland businesses. Companies need to consider cyber security as critical to their business operation, incorporate it into their business model and implement measures to mitigate any associated risk.

"There are a number of basic steps that businesses can take to get cyber smart. They can create a cyber security strategy, raise awareness amongst staff of cybercrime breaches and install software that keeps them and their customers' details safe and keep all software up to date."

(CD/LM)