2 in 3 PH firms lose at least US$1M each to cyberattacks

More than two-thirds (68%) of companies in the Philippines experienced at least one cybersecurity incident in the past year, due mostly to phishing, web attacks, and business email compromise, a study by Cloudflare showed.

This research was conducted by Sandpiper Communications in July 2023, covering a total of 4,009 cybersecurity decision makers and leaders across Australia, China, Hong Kong, India, Indonesia, Japan, Malaysia, New Zealand, the Philippines, Singapore, South Korea, Taiwan, Thailand, and Vietnam.

Cybersecurity incidents also proved costly for organisations in the Philippines, with 38% of respondents indicating they incurred a financial impact of at least US$1 million from cybersecurity incidents over the 12 months before the survey. 

Respondents also cited reputational damage, loss of the data/intellectual property, and loss of customers as the biggest impact felt by their organisations outside of financial loss.

Despite the frequency of cybersecurity incidents in the Philippines, only 44% of respondents indicated they were “highly prepared” to prevent them. 

A lack of funding was cited as the biggest challenge when it comes to cybersecurity preparedness, followed by a shortage of talent.

The aftermath of cybersecurity incidents extends to organisational operations, with 39% of respondents saying their organisations reduced or restricted hybrid work, temporarily suspended business operations, and put growth plans on hold. 

In addition, 30% of respondents said their organisation reported breaches to the relevant authorities.

“Preparedness is key to combating cyberattacks, and this would require organisations to approach cybersecurity as an essential and strategic business imperative,” said Jonathon Dixon, Cloudflare VP and managing director for Asia-Pacific, Japan and China.

To improve cybersecurity outcomes and reap the full benefits of a digital future, business leaders must recognise the urgency of building a strong cybersecurity culture across all levels of the organisation and make the necessary investments to achieve this,” said Dixon.