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Cybersecurity tax relief proposed after Asos hack and rising attacks

Following a recent cyber attack on Asos, the chair of the Cybersecurity Business Network suggests the government should incentivise businesses to improve their security through tax relief and other measures.

  • Asos customers reportedly received pop-up messages from hackers via its app on Tuesday.
  • The National Cyber Security Centre (NCSC) handled four nationally significant attacks per week last year.
  • Last year, 57% of businesses lacked basic technical cyber skills, an increase from 49%.

The government is being urged to incentivise businesses to enhance their cybersecurity following a recent cyber attack affecting Asos customers. On Tuesday, Asos app users across the UK reportedly received pop-up messages that appeared to originate from hackers.

Matt Warman, chair of the Cybersecurity Business Network (CBN) and former UK digital and cyber minister, suggests the government could introduce direct tax relief or incentives for accredited cybersecurity products and services. This measure aims to make protection more affordable, particularly for smaller firms.

Warman also advocates for giving small cyber firms a greater opportunity to secure public contracts, noting they represent 77% of the cyber sector. Additionally, he proposes funding for training and awareness to support organisations newly subject to cybersecurity legislation, especially given that 57% of businesses lacked basic technical cyber skills last year, up from 49%.

The National Cyber Security Centre (NCSC) reported dealing with four nationally significant attacks per week last year and anticipates an increase in both the number and impact of attacks due to AI.

Why this matters: Cyber attacks can lead to economic problems, including system downtime, disrupted orders, and loss of customer confidence, as seen in incidents affecting JLR and M&S.

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