Why Third Sector Organisations are Facing Heightened Cyber Security Risks

Why Third Sector Organisations are Facing Heightened Cyber Security Risks

The UK’s third sector, comprising charities and not-for-profit organisations, is increasingly vulnerable to cyber breaches. Recent data highlights that these organisations face heightened risks due to several key factors, including limited resources, sensitive data holdings, and an evolving cyber threat landscape. This blog article explores why UK third sector organisations are at a higher risk of cyber breaches and what steps can be taken to mitigate these risks.

Limited Resources and Technical Expertise

One of the primary reasons third sector organisations are at risk is their limited financial resources and technical expertise. Charities often have restricted budgets, which can lead to underinvestment in cybersecurity measures, such as outdated systems and insufficient security solutions. This lack of investment leaves them more susceptible to evolving cyber threats like polymorphic malware and ransomware attacks. For instance, only 24% of charities have introduced necessary cybersecurity risk management software, and just 26% have undertaken cybersecurity risk assessments in the past year. This under preparedness is exacerbated by the fact that many charities rely on part-time employees and volunteers, who may not have the latest cybersecurity knowledge or use up-to-date devices for charity work.

Moreover, the economic pressures facing charities further complicate their ability to enhance cybersecurity. The ongoing economic downturn forces charities to reduce spending on non-essential items, including cybersecurity, despite the increasing demand for their services. This financial strain, combined with limited capacity to invest in robust cybersecurity measures, makes charities particularly vulnerable to cyber threats. As a result, charities are often targeted by cybercriminals who exploit these weaknesses to gain access to sensitive data, including financial information and donor details.

Sensitive Data and Attractive Targets

Charities handle vast amounts of sensitive data, including donor details, financial records, and beneficiary information. This wealth of data makes them prime targets for cybercriminals seeking financial gain or other malicious objectives. The potential damage from a data breach is not only financial but also reputational, as it can undermine trust among donors and the public. Recent statistics show that almost a third (32%) of UK charities experienced a cybersecurity breach or attack in the last 12 months, with phishing being the most common type of attack, affecting 83% of charities. The consequences of such breaches can be severe, with the average cost of the most disruptive breach being approximately £460 per charity.

Furthermore, the increasing adoption of technology within the sector, such as digital fundraising models and online payment systems, exposes charities to additional risks. While these technologies enhance fundraising capabilities, they also create new vulnerabilities that can be exploited by cyber attackers. The lack of comprehensive cybersecurity measures, including risk management software and security monitoring tools, leaves charities exposed to threats like cyber fraud and data breaches. As charities continue to integrate technology into their operations, it is crucial that they prioritise cybersecurity to protect their sensitive data and maintain public trust.

Evolving Threat Landscape and Third-Party Risks

The cyber threat landscape is constantly evolving, with the rise of AI-powered attacks and increased regulatory scrutiny. These factors will likely escalate the risk to charities in 2025, making it crucial for them to adapt and invest in robust cybersecurity strategies. The use of generative AI has enabled cyber attackers to create more convincing phishing emails and launch larger-scale attacks, further complicating the threat environment for charities. Additionally, the issue of third-party access poses a significant risk. While not specific to charities, the broader UK context shows that over half of organisations experienced security breaches resulting from third-party access in the past year. This highlights the importance of robust third-party risk management strategies for all organisations, including charities.

Moreover, ransomware remains a major threat to UK organisations, including charities. The UK Government has identified ransomware as the biggest serious and organised cybercrime threat, with proposals to limit ransom payments and enhance incident reporting. For charities, the impact of a ransomware attack can be devastating, as seen in cases where data is stolen and charities are blackmailed with threats to publish sensitive information online. The evolving nature of these threats underscores the need for charities to stay vigilant and invest in cybersecurity measures that can mitigate these risks effectively.

Building Cyber Resilience

To mitigate these risks, charities must prioritise cybersecurity and build resilience against cyber threats. This involves increasing awareness, fostering partnerships with cybersecurity providers, and leveraging government support for affordable solutions. Implementing robust cybersecurity measures, such as regular risk assessments, security monitoring tools, and incident response plans, is essential for protecting sensitive data and maintaining trust with donors and beneficiaries. While 63% of charities report that cybersecurity is a high priority for senior management, only 19% have formal incident response plans in place. This gap highlights the need for more proactive measures to ensure that charities are prepared to respond effectively to cyber incidents.

Conclusion

In conclusion, UK third sector organisations face heightened risks of cyber breaches due to their limited resources, sensitive data holdings, and the evolving cyber threat landscape. Addressing these challenges requires proactive investment in cybersecurity and a commitment to building resilience against cyber threats. As the sector continues to navigate these risks, prioritising cybersecurity will be crucial for maintaining operational integrity and public trust. By adopting robust cybersecurity strategies and leveraging available resources, charities can better protect themselves against the growing threat of cyber-attacks and ensure the continuity of their vital services.

If you would like to discuss any of the topics covered in the above article please get in touch with our experienced team – info@somniacsecurity.com

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