The cost of the most severe online security breaches for big business now starts at almost £1.5 million – up from £600,000 in 2014 – according to Government research published to raise awareness of the growing cyber threat.

The Information Security Breaches Survey 2015, published by Digital Economy Minister Ed Vaizey and launched at the recent Infosecurity Europe event, shows the rising costs of malicious software attacks and staff-related breaches and illustrates the need for companies to take action.

For small and medium-sized enterprises, the most severe breaches can now cost as much as £310,000, up from £115,000 in 2014.

However, more firms are taking action to tackle the cyber threat, with a third of organisations now using the Government’s ‘Ten Steps to Cyber Security’ guidance, up from a quarter in 2014. And nearly half (49%) of all organisations have achieved a ‘Cyber Essentials’ badge to protect themselves from common internet threats, or plan to get one in the next year.

The survey shows that 90% of large organisations reported they had suffered an information security breach, while 74% of SMEs reported the same.

It revealed that for companies with more than 500 employees the cost of the most severe breach is now typically between £1.46 million and £3.14 million, while for SMEs the cost of the worst breach is now typically between £75,000 and £310,800.

Mr Vaizey said: “The UK’s digital economy is strong and growing, which is why British businesses remain an attractive target for cyber attack and the cost is rising dramatically. Businesses that take this threat seriously are not only protecting themselves and their customers’ data but securing a competitive advantage.

“I would urge businesses of all sizes to make use of the help and guidance available from Government and take up the Cyber Essentials Scheme.”