Successful cyber attacks against UK utility companies surged to 48 in 2023, a 586% increase from seven cases in 2022, according to global specialty (re)insurance group Chaucer.
Chaucer’s data reveals that sensitive information of 140,000 individuals was compromised in 2023, a 714% rise from 17,000 affected individuals in 2022.
These cyber attacks have mostly involved data theft or ransomware. However, there are growing concerns that attacks aiming to damage infrastructure could rise due to increased geopolitical tension.
Organised criminal groups profit from several interconnected activities like trafficking of drugs, humans, arms and other illicit goods.
Technology allows criminals to connect, and also to reach consumers. Another main profit earner is cyber-enabled fraud, which no longer requires high technical acumen: crime-as-a-service products or “business models” can be bought online.
Cyber-enabled fraud does not depend on computers per se, but is enabled and scalable with new technologies. This is different from cyber-dependent crime like hacking and malware.
Ben Marsh, Class Underwriter at Chaucer, notes that UK utility companies, as part of critical infrastructure, face higher hacking risks since the Ukraine war began in 2022. The International Energy Agency has also warned about rising cyberattacks on European energy infrastructure, according to UK Cyber Insurance Market Trends.
Ofcom, the telecoms and broadcast regulator, faced an average of 30,000 attempted cyber intrusions per week last year.
Its suspected that the increase in cyber breaches is being driven in part by growing efforts from state backed hackers targeting critical UK infrastructure
Ben Marsh, Class Underwriter at Chaucer
That comes on top of the threat from more conventional cyber criminals who also continue to target UK utility companies. Particularly as these companies hold extensive amounts of personal data including people’s financial details.
“Utility companies hold a wide array of personal information from bank details to home addresses. Once this information is obtained by hackers, they can exploit it themselves or sell it on to third parties on the dark web.”, Ben Marsh, Class Underwriter at Chaucer stated.
Cyber breaches can leave companies with reputational and operational damage, the fear of which makes them more vulnerable to ransomware attacks after the breaches
Chaucer adds that “utility companies’ need to ensure their cyber security keeps pace with the standards of the day to ensure the safety of their own and their customers’ data.
