Cybersecurity Breaches Affect 23% of Irish Businesses Amid Rising Threats

Prevalence of Cyber Breaches in Ireland

A recent report indicates that 23% of Irish companies experienced a cybersecurity breach in the past year, highlighting a significant challenge for businesses across the country. This figure, confirmed by research from Auxilion, shows that nearly one in four Irish businesses faced an online security incident, ranging from hacked email accounts to system-blocking attacks. Other studies suggest an even higher incidence, with the Hiscox Cyber Readiness Report 2024 revealing that almost three-quarters (74%) of Irish businesses reported an increase in cyberattacks over the past year. Small and medium-sized enterprises (SMEs) are particularly vulnerable, with over 60% of cyberattacks now targeting this sector due to perceived weaker defenses.

Impact and Financial Consequences

The repercussions of these breaches extend beyond immediate disruption, leading to substantial financial losses and commercial setbacks. Almost 90% of Irish businesses have suffered financial loss and commercial disruption due to cyberattacks over the last five years. The average cost of a data breach in Ireland now exceeds €200,000. Globally, the estimated cost for an average data breach is even higher, at €3.06 million. Beyond direct financial hits, businesses reported other severe consequences, including:

• Loss of intellectual property (26%)
• Supply chain disruption (23%)
• Reputational damage (23%)
• Ransom payment demands (20%)

Evolving Threat Landscape

The nature of cyber threats is constantly evolving, with several key attack vectors dominating the landscape. Phishing remains a primary concern, identified as the single biggest attack vector, with over 90% of compromises originating from email. Social engineering attacks are also increasingly prevalent, often targeting staff directly rather than systems. Ransomware continues to be a highly disruptive threat; nearly 30% of large enterprises in Ireland paid at least one cyber ransom in the past year, with the average payment reaching €683,000. The rise of AI-powered cyberattacks is making phishing emails more sophisticated and convincing, posing new challenges for detection. Additionally, cloud security misconfigurations and supply chain vulnerabilities are emerging as significant risks.

Government Initiatives and Recommendations

In response to the escalating threats, the Irish government is implementing measures to bolster cybersecurity. The National Cyber Security Centre (NCSC) and Enterprise Ireland have launched the €2 million SME Cyber Security Improvement Grant, offering eligible SMEs 80% funding for projects up to €60,000 to enhance their defenses. The NCSC's 2025 National Cyber Risk Assessment highlights systemic risks such as the dynamic geopolitical environment, evolving technology, and supply chain security. Upcoming EU and Irish regulations, including the NIS2 Directive and the Cyber Resilience Act, will introduce stricter cybersecurity requirements for businesses. Experts emphasize the critical role of human factors, noting that over 80% of global security incidents stem from human error. Recommendations for businesses include investing in staff training, security awareness programs, robust endpoint protection, regular data backups, and timely software updates to mitigate risks.