3 October 2019Insurance

UK councils hit by 263m cyber attacks in H1 2019: Gallagher

Almost half (49 percent) of all UK councils have faced a cyber attack since the beginning of 2017, with cyber criminals hitting these organisations with 263 million attacks in the first half of 2019 alone, research has revealed.

The information, gathered by insurance broking, risk management and consulting firm Gallagher, the brand name for A J Gallagher, showed that at least 101 UK councils had experienced an attempted cyber-attack on their IT systems since 2017.

More than a third (37 percent) of these had been hit with cyber-attacks in the first half of 2019.

The figures are based on responses to a freedom of information (FOI) request that Gallagher sent to UK local authorities. Responses were received between August and September 2019.

The councils that responded said they had experienced 263 million attacks in the first six months of 2019, equating to almost 800 attacks every hour, Gallagher said.

Since the beginning of 2017, 17 of the attacks were reported to have resulted in a loss of data or money. One council reported a loss of over £2 million.

Despite the growing threat from cyber crime, only 34 councils currently hold a cyber-insurance policy (equivalent to just 13 percent of councils), the research said.

The introduction of GDPR and its potentially hefty fines for data breaches means that councils could be seen as “prime targets” for cyber criminals, Gallagher said.

But the company’s research found that of the councils that have been previously hit by a successful attack only one now holds a cyber-specific insurance policy.

Tim Devine, managing director of Public Sector & Education at Gallagher, said: “Our research illustrates the scale of the challenge facing local authorities in the UK. Councils are facing an unprecedented number of cyber-attacks on a daily basis. While the majority of these are fended off, it only takes one to get through to cause a significant financial deficit, a cost which the taxpayer will ultimately foot.

“Costs and reputational damage at this scale can be devastating for public authorities, many of which are already facing stretched budgets. In many scenarios, the people responsible for purchasing cyber insurance products need decisions to be made at member, or management level. The cyber threat and the need for cover needs to be high on every local authority’s agenda.”

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