Securing Your Business & Staff Against Phishing and Cybersecurity Threats
When IBM, the tech giant we all know simply as “IBM” , speaks about cybersecurity, the world listens. Why? Because they’ve been at the forefront of protecting data for decades.
Every year, IBM releases its Cost of a Data Breach Report, and the 2025 edition is no exception. It’s packed with insights, real-world examples, and some hard truths about what happens when businesses, big or small, fall victim to cyberattacks.
Think of it like this: if a major city’s fire department told you exactly how fires start and how to prevent them, you’d probably pay attention, right? That’s exactly what IBM does for cybersecurity.
The report doesn’t just share scary numbers; it highlights what really happens when a data breach hits, lost money, lost trust, and sometimes even lost businesses. But here’s the good news: by understanding these risks, you can take simple, smart steps to protect your business, your team, and your customers from phishing scams and other cyber threats.
Partnership with the Ponemon Institute
IBM doesn’t create its Cost of a Data Breach Report alone. They team up with the Ponemon Institute, a respected research organisation specialising in data protection and privacy.
That partnership is important because it means the findings aren’t just IBM’s opinions, they’re backed by real-world data, thousands of interviews, and independent analysis. It’s like having a referee at a football match; you know the calls are based on evidence, not bias.
Why the 2025 UK Report Matters for All Organisations
You might be thinking, “Well, my company isn’t a tech giant, so why should I care?” But here’s the uncomfortable truth, cybercriminals don’t just target big corporations. In fact, small and medium-sized businesses are often the easier targets because they have fewer security controls in place.
The 2025 UK report lays out exactly where organisations in the UK are holding their ground against cyber threats, and where they’re leaving the doors wide open. Whether you’re running a start-up, a school, a charity, or a large bank, the same scams, phishing attacks, and data breaches can hit you. And when they do, the costs, financial, reputational, and operational, are always painful.
And here’s where it gets personal…
One employee we heard about received an email saying her organisation had been nominated for a prestigious business award. All she had to do was pay a small “administration fee” to secure it. The email had an official-looking logo, a professional signature, and even used her full name. She was excited, who wouldn’t be?, and nearly paid it on the spot.
But it was all fake. The “award” didn’t exist, and the money would have gone straight to a scammer’s account. This is classic phishing: playing on your emotions, excitement, pride, urgency, so you act before you think.
How This Report is Used by Governments, Banks, and Enterprises
This report isn’t just bedtime reading for cybersecurity geeks.
- Governments use it to shape policies that keep national infrastructure safe.
- Banks and insurers use it to measure risk and decide premiums.
- Large enterprises use it to argue for bigger budgets for security teams and better tech.
If the people making the rules, lending the money, and protecting the systems are reading it carefully, it’s worth your time too.
Purpose of This Article
We’re not here to dump statistics on you and hope you stay awake. This article will:
- Educate you on what’s happening in the cyber world right now.
- Inform you about the latest scams and threats, in plain language.
- Equip you with practical steps to protect your business and staff.
Before we dive into what phishing actually means, the different types out there, and how to protect yourself, let’s first set the stage with some key context. We’ll take a quick look at the key findings from the IBM Cost of a Data Breach Report 2025, explore the countries and sectors hit hardest by data breaches, and revisit some of the most notable breach incidents from 2024–2025.
This will help us understand just how big the threat landscape really is, and why phishing remains one of the most dangerous tactics in the cybercriminal playbook.
IBM Cost of Data Breach Report 2025: The Key Findings
IBM’s 2025 Cost of a Data Breach Report, based on research by the Ponemon Institute, reveals a mixed picture for UK organisations. While AI and automation are helping some companies cut breach costs and speed up response times, many still lack the governance and security controls needed to protect these systems.
Here’s what the data shows:
- AI drives major savings: UK organisations making extensive use of AI and automation in security reduced the average cost of a data breach to £3.11M (around $3.95M), compared to £3.78M (around $4.8M) for those without these tools, a saving of more than £600K.
Globally, the saving is even higher: about $1.9M (£1.5M) per breach.
- Global costs down for first time in 5 years: The global average breach cost fell to $4.44M (£3.53M), down 9% from last year’s $4.88M (£3.88M). The UK remains below the global average, but US costs hit a record high of $10.22M (£8.12M).
- Shadow AI is expensive: Organisations using high levels of unregulated “shadow AI” (when employees secretly use AI tools like ChatGPT without the company’s knowledge, which can accidentally leak sensitive data) face an extra $670K (£530K) in breach costs, on average. These incidents often compromised personal data (65%) and intellectual property (40%).
- AI-related breaches are rising: Around 1 in 6 breaches now involve attackers using AI, most often for AI-generated phishing (fake emails designed to steal information) (37%) and deepfake impersonation (AI-created fake audio or video that looks and sounds real) (35%). Generative AI can reduce the time to craft a phishing email from 16 hours to just 5 minutes.
- Phishing still dominant: Phishing was the most common attack vector globally (16% of breaches), costing an average of $4.8M (£3.82M).
- Slow adoption of AI security controls: 63% of UK organisations lack AI access controls, and only 31% have strong governance policies in place. Even among those with policies, regular audits for unauthorised AI use are rare.
- Ransomware victims refusing to pay: 63% refused ransom demands in 2025 (up from 59% in 2024), but the average ransomware/extortion breach still costs $5.08M (£4.05M). (A ransomware victim is when hackers lock a person’s or business’s files and demand money to unlock them.)
- Falling post-breach investment: Only 49% of organisations plan to increase security spending after a breach (down from 63% last year), and less than half of those will focus on AI-driven solutions.
- Financial services hardest hit in UK: Average breach cost is £5.74M (about $7.22M), still the costliest UK sector despite a 5% drop since 2024.
Countries & Sectors Most Impacted by Data Breaches
The IBM Cost of a Data Breach Report 2025 shows that while the cost of breaches has dropped globally for the first time in five years, some countries and industries still face disproportionately high expenses when incidents occur.
Breach Costs by Industry
- Healthcare – $7.42M
- Financial – $5.56M – Banking, insurance, and investment sectors remain prime targets.
- Industrial – $5.00M – Includes manufacturing, engineering, and chemical processing.
- Energy – $4.83M – Oil, gas, and utilities hit hard by operational disruption costs.
- Technology – $4.79M – Hardware and software firms face AI-driven attacks.
- Pharmaceuticals – $4.61M – Intellectual property theft and supply chain breaches common.
- Services – $4.56M – Professional, legal, and consultancy firms storing sensitive client data.
- Entertainment – $4.43M – Media rights and streaming platform data frequently targeted.
- Media – $4.22M – News outlets and content distributors see growing phishing-related breaches.
- Hospitality – $4.03M – Customer payment and booking systems exploited.
The public sector saw the largest cost increase year-on-year — up 10.8% ($310,000 more per breach).
Breach Costs by Geography
- United States – $10.22M – Highest for the 15th consecutive year.
- Middle East – $7.29M – Driven by critical infrastructure targeting.
- Benelux – $6.24M – Increased supply chain breaches.
- Canada – $4.84M – Costs rising with AI-powered phishing attacks.
- United Kingdom – $4.14M – Below global average, but AI governance gaps remain.
Trend Insights:
- The ASEAN region and the US saw sharp increases in costs.
- Italy, Germany, and South Korea experienced modest declines.
UK-Specific: Notable Data Breach Incidents (2024–2025)
While IBM’s report does not name affected organisations, several significant breaches have been publicly reported in the UK over the last year:
- Marks & Spencer (M&S) – April 2025 cyberattack disrupted online sales and click & collect services; suspected ransomware with operational and financial impact.
- Legal Aid Agency (Ministry of Justice) – 2025 breach compromised large volumes of personal data from legal aid applications dating back to 2010; investigation ongoing.
- Pandora (UK customers impacted) – Third-party marketing database breach exposed customer names and emails; part of a global incident affecting multiple regions.
For official details on reported breaches and enforcement, the Information Commissioner’s Office (ICO) publishes UK GDPR-related data security incident reports and outcomes.
Now that we’ve explored the latest data, the hardest-hit industries, and some real-world breach examples, it’s time to zoom in on phishing itself.
What exactly is it? How does it work? And why does it remain such a persistent problem despite years of awareness campaigns?
What is Phishing?
Phishing is essentially trickery. Attackers pretend to be someone you trust, your bank, your boss, a government agency, to get you to hand over sensitive information like passwords, credit card numbers, or company data.
Think of it like fishing in a river. The “bait” might be a fake email, a phone call, or even a video, and the “catch” is you… or more specifically, your data.
Types of Phishing Attacks
- Email Phishing: Mass emails sent to thousands, pretending to be from a trusted source like your bank or a delivery service.
- Spear Phishing: Personalised scams targeting a specific person or small group, often using details they’ve found about you online.
- Vishing: Voice phishing; scammers call pretending to be from your bank, your IT team, or even the police.
- Smishing: Scam texts sent via SMS or WhatsApp, often with a link to a fake site.
- Business Email Compromise (BEC): Hackers impersonate a company executive and trick staff into sending money or data.
- Deepfake Phishing: Using AI-generated voices or videos to mimic real people so convincingly that even your own boss could be “speaking” to you, but it’s not them.
The AI Double-Edged Sword
Now that we’ve seen the key findings from the IBM report, broken down what phishing really is, explored the different forms it can take, and even glanced at other key reports…
Let’s talk about the game-changer that’s shaking up cybersecurity everywhere: Artificial Intelligence.
AI is a bit like electricity, it can power your entire business, or it can burn the whole place down if it’s not handled properly.
The Good:
- AI tools can spot unusual behaviour in your systems faster than any human could.
- Automation can shut down attacks in real time, drastically cutting breach costs.
- Predictive analytics can warn you about suspicious activity before it becomes a disaster.
The Bad:
- Shadow AI: when employees secretly use AI tools (like ChatGPT or image generators) without the company’s knowledge, can accidentally leak sensitive data to unknown servers.
- Hackers are using AI to craft incredibly convincing phishing emails, clone voices, and even create deepfake videos that could fool your closest colleague.
- Generative AI means cybercriminals can create a perfectly targeted phishing attack in minutes, not hours.
How to Secure Your Business & Staff Against AI-Powered Threats
Here’s a practical action plan inspired by IBM’s findings and other top security sources:
Step 1: Invest in AI & Automation Wisely
- Deploy security tools that can detect and respond to threats in real time.
- Use automated patch management so no vulnerabilities go unpatched.
Step 2: Strengthen Staff Training
- Run quarterly phishing simulations, not as a “gotcha” exercise, but as a team-wide learning opportunity.
- Celebrate and reward people for spotting suspicious emails or activity.
Step 3: Implement Strong Access Controls
- Enable Multi-Factor Authentication (MFA) for every account, no exceptions.
- Apply role-based permissions so staff only have access to what they truly need.
Step 4: Have a Clear Response Plan
- Decide in advance who leads the response if a cyber incident occurs.
- Keep up-to-date contact info for your IT provider, hosting company, and cyber insurance provider.
Step 5: Address Shadow AI Risks Head-On
- Monitor and manage which AI tools can be accessed from your network.
- Train staff on what’s safe to use and what’s not, and explain why.
Bottom line: AI can be your strongest security ally, but only if it’s used deliberately, monitored closely, and combined with strong human decision-making.
Other Data Breach & Cybersecurity Reports Worth Reading
Read or Download the Full IBM Report Here
While IBM’s Cost of a Data Breach Report is one of the most respected in the industry, it’s not the only source of valuable insight. Here are three other reports that shed light on today’s threat landscape and can help you strengthen your defences:
- UK Government Cyber Security Breaches Survey 2025: The official government-backed snapshot of cyber incidents across the UK, including trends by sector and organisation size. Read the survey
Frequently Asked Questions About Phishing, Data Breaches, and Cyber Security
In today’s digital world, cyber threats are no longer a distant possibility, they’re a daily reality for businesses and individuals alike. From phishing emails that trick you into giving away personal details, to data breaches that expose millions of records in seconds, online attacks are constantly evolving. Below are answers to some of the most common questions people ask about phishing prevention, data breach protection, and online security best practices.
What is phishing and how can I recognise it?
Phishing is a cyber attack where criminals pretend to be a trusted person or organisation, often through email, text messages, or fake websites, to trick you into revealing personal information. Common signs include suspicious sender addresses, urgent “act now” language, poor spelling, and unexpected links or attachments.
What should I do if I click on a phishing link?
Immediately disconnect from the internet, run a full antivirus scan, change any potentially compromised passwords, and enable multi-factor authentication (MFA) on critical accounts. If you entered sensitive information, contact your bank or relevant institution as soon as possible.
How does a data breach happen?
A data breach occurs when sensitive, confidential, or protected information is accessed or stolen without authorisation. This can happen through hacking, phishing, malware, weak passwords, unpatched software, or even insider threats within an organisation.
What’s the difference between a phishing attack and a data breach?
Phishing is a method used to trick people into giving away sensitive data, while a data breach is the result of unauthorised access to a system or database. Phishing can cause a data breach, but not all breaches are caused by phishing.
How can I protect my business from phishing scams?
Train employees to spot suspicious emails, use email filtering software, enable MFA, keep systems updated, and regularly run phishing simulation exercises to test awareness.
What are the first steps to take after a data breach?
Identify and contain the breach immediately, notify affected parties, change all passwords, update security patches, and report the incident to relevant authorities or regulatory bodies.
Can phishing attacks happen through text messages or phone calls?
Yes, these are known as “smishing” (SMS phishing) and “vishing” (voice phishing). They use similar tactics as email phishing, aiming to trick you into revealing personal or financial information.
How often should I update my passwords for better security?
Experts recommend updating passwords every 3–6 months, or immediately after a suspected security incident. Use strong, unique passwords for each account and consider a password manager.
What role does MFA play in preventing cyber attacks?
Multi-factor authentication adds an extra security layer by requiring a second verification step (like a text code or authentication app) in addition to your password, making it harder for attackers to access your accounts even if they have your login credentials.
Are small businesses really targeted by cyber criminals?
Absolutely. Small businesses are often seen as “low-hanging fruit” because they may have weaker security measures than large corporations, yet still handle valuable customer and financial data.
What are the most common mistakes people make that lead to cyber attacks?
Using weak passwords, ignoring software updates, clicking unknown links, oversharing personal information online, and failing to back up important data are some of the most common mistakes.