A recent study by the renowned insurance firm Hiscox has revealed alarming trends in how cyberattacks are not only damaging businesses but are also taking a heavy toll on employees, leading to burnout, sick leave, and, in some cases, contributing to a toxic work culture. The research, which focused on businesses operating in Ireland, highlights the growing threat posed by cybercrime—particularly in the form of artificial intelligence (AI)-powered ransomware attacks.
The Hiscox Cyber Readiness Report 2025, based on feedback from over 500 industry professionals, reveals that at least 40% of Irish businesses have fallen victim to at least one cyberattack in the past 12 months. This statistic underscores the increasingly frequent and sophisticated nature of cyber threats faced by companies today. Notably, more than one-third of these businesses were targeted by Distributed Denial of Service (DDoS) attacks, which temporarily halted their operations. In addition, over 31% of the affected firms reported significant financial losses due to these cyber assaults, with many also noting that the attacks hampered their ability to attract new customers, further exacerbating the financial strain.
However, perhaps the most concerning finding of the study is the impact these cyberattacks are having on employees. In many cases, the human cost is more far-reaching than the immediate financial damage to the business itself. The survey revealed that over 33% of employees reported feeling significant stress in the wake of cyber incidents. Around 31% admitted to experiencing burnout, while 23% took sick leave due to the emotional and psychological toll of the attacks. A key factor contributing to this distress is the “blame game” culture that often emerges after such events. Employees reported feeling demoralized and isolated, with trust within teams breaking down as finger-pointing and internal blame escalated.
While the majority of employees struggled with the fallout from these attacks, there was some positive feedback in the study. Around 38% of workers observed a noticeable increase in loyalty among their colleagues after the attack, and 33% reported a strengthening of camaraderie within their teams. This suggests that, in some cases, businesses may experience a sense of unity in the aftermath of a crisis, as employees rally together to overcome the challenges posed by the cyber event.
The study also highlighted the growing prevalence of ransomware attacks targeting Irish businesses. An overwhelming 70% of companies admitted to paying a ransom to regain access to their systems, with 35% reporting full recovery of their data and systems. However, nearly 30% of businesses revealed they had suffered a data breach, further emphasizing the potentially devastating consequences of such attacks.
From an AI perspective, the survey found that more than 62% of companies feel that their IT infrastructure is vulnerable to attacks from third-party AI tools. Despite these concerns, 66% of respondents believe that AI can be a valuable asset to their operations rather than a liability. This indicates a growing acceptance of AI’s potential, even as businesses acknowledge the new threats it can pose.
When it comes to cybersecurity preparedness, the report shows that while 56% of Irish businesses believe their security measures are robust enough to withstand current cyber threats, there is still a significant sense of urgency to improve. Approximately 4% of businesses indicated that they planned to increase their cybersecurity budgets by 2026, recognizing that more needs to be done to protect against evolving threats in the digital landscape.
Overall, the Hiscox study paints a stark picture of the challenges Irish businesses face in the face of increasing cyber threats. While many firms are investing in stronger cybersecurity measures, the human cost of these attacks is undeniable. Companies must not only focus on safeguarding their systems but also consider the well-being of their employees, who often bear the brunt of the stress and anxiety that follows a cyberattack. As the digital landscape evolves, so too must the strategies employed by organizations to protect both their infrastructure and their workforce from the growing threat of cybercrime.
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