And it costs the world economy £445bn
The UK lost £4.3bn to cybercrime in 2014 – approximately 16% of GDP.
Attacks are rising quickly too – they rose 48% in 2014 across the world, according to insurer Allianz Global which carried out a study.
To make matters worse, not all businesses are prepared.
Chris Fischer, CEO of Allianz Global Corporate and Specialty (AGCS), said: “As recently as 15 years ago, cyber-attacks were fairly rudimentary and typically the work of hacktivists, but with increasing interconnectivity, globalisation and the commercialisation of cyber-crime there has been an explosion in both frequency and severity of cyber-attacks.
“Cyber insurance is no replacement for robust IT security but it creates a second line of defence to mitigate cyber incidents,” he said.