Why the Cyber Future Is Riskier Than You Think?

• The frequency and sophistication of cyber-attacks in the UK are, in a manner of speaking, being governed by AI, with some 2,000 incidents reported again in 2024, nearly 90 of them “significant” and 12 “highly severe”.
• The rise in fraud cases by 12% to an all-time high of 3.31 million in 2024 amounted to losses of some £1.17 billion, thus pointing to the growing trend of high-volume, low-value scams plaguing financial services.

In today’s world, digital transformation underpins almost every part of life—even your morning coffee could be traced, encrypted, or managed online. But with this shift comes a sobering truth: the cyber future is riskier than you think. Advances like AI, quantum computing and global supply chains bring benefits—but also expose organisations to increasingly sophisticated threats.

A Surge in Cyber Attacks

Across the UK, businesses of all sizes fell prey to cybercrime in 2023–24. A Beaming–Censuswide study revealed that 1.5 million firms—around 27% of businesses—experienced an attack, costing a combined £30.5 billion, with the average incident costing just over £5,500. Over half of UK businesses have been attacked in the past five years, racking up £44 billion in losses, with SMEs particularly hard hit. Alarmingly, only 61% have antivirus protection, and just over half use a firewall — a clear cyber hygiene gap.

Half of businesses reported an attack in the last year, up from 39% in 2022. For SMEs, it’s even worse—81% of all these attacks are aimed at smaller firms, where average losses are around £10,830.

AI: Boon or Bane?

Artificial intelligence is reshaping both our defences and our threats. At CyberUK 2025, Cabinet Office Minister Pat McFadden confirmed a worrying trend: AI is increasing both the volume and intensity of cyberattacks. In 2024, the NCSC handled nearly 2,000 attack reports, with 90 deemed significant and 12 classified as highly severe—a threefold rise from the year before.

Yet AI could be our shield as much as our vulnerability. The government’s investment—like the new £8 million Laboratory for AI Security Research—is a clear signal that we’re taking this seriously.

Ransomware’s Continued Rampage

Ransomware remains a top cyber threat. Retail favourites like Marks & Spencer, Co-op and Harrods were hit in early 2025, forcing M&S to pause online clothing orders and triggering operational setbacks across all three. Meanwhile, GCHQ has recorded around 200 “nationally significant” incidents since September, with 12 rated at the highest severity.

The government is now batting for a ban on ransom payments by critical entities to choke off funding to criminals, and a mandatory reporting regime is in the pipeline.

The Rising Tide of Fraud

Beyond ransomware, fraud is escalating. In 2024, the UK saw a 12% year-on-year increase in reported fraud, reaching 3.31 million cases, with total losses of £1.17 billion COP. High-volume, low-value scams, like remote‑purchase fraud, are now rife.

A Ticking Quantum Time Bomb

The quantum era brings fresh concerns. Quantum computing threatens to crack today’s encryption standards, raising fears of a “harvest now, decrypt later” scenario. That’s why post-quantum cryptography and quantum key distribution are gaining traction among banks and governmental bodies, from theory to strategic planning.

Regulatory Turning Point

The proposed Cyber Security and Resilience Bill, introduced in July 2024, is a big step forward. It tightens the 2018 NIS regulations, introducing ransomware reporting duties and board-level accountability. Organisations in critical sectors, finance, transport and digital services will need to prove they’ve got the right protections in place.

How to Prepare

So, how does a modern UK business gird itself for a riskier cyber tomorrow?

• Embrace AI-powered cyber defence, backed by skilled analysts—humans plus machines—for a nimble posture.
• Adopt zero-trust policies—segmented networks, multi-factor login, encrypted backups and polished incident-response plans.
• Secure your supply chain—vet your vendors, enforce baseline requirements for third-party security.
• Prepare for post-quantum cryptography—integrate PQ algorithms and test quantum key distribution where it matters.
• Align with evolving regulation—stay ahead of the CS&R Bill’s reporting and audit obligations.
• Close the skills gap—global shortages threaten growth; invest in training, apprenticeships and partnerships.

Why This Matters

Cybersecurity isn’t just about code—it’s about confidence. Firms hit by ransomware or data loss risk losing brand trust and customer loyalty. As M&S’s recent troubles show, disruption can be swift and costly. Customers want to know “if, not when” you’re hacked; you were ready. They value resilience.

A Call to Brands

The cyber future truly is riskier than you think—but that’s an opportunity, not a doomsday prophecy. By combining tech, talent and policy, UK businesses can navigate security challenges and earn customer trust. Whether you’re a household name or a rising SME, it’s time to act: prioritise cyber resilience as a strategic asset, not just a technical box-tick.

Let’s turn uncertainty into strength. The cyber future may be stormy, but equipped with foresight and credibility, British brands can stand tall.