(4 min read)

Would you trust a company with your personal data if it had suffered a major security breach?

Many of us wouldn’t. Customers are quick to move away from businesses that fail to protect their information, especially when financial data is compromised. In highly regulated industries like banking, insurance, and engineering, a cyber attack doesn’t just threaten operational security—it severely damages trust.

And, in our Western economies 70% to 80% of a company’s market value comes from intangibles like brand equity, intellectual capital and goodwill, so companies are particularly vulnerable to reputational damage.

Cyber Attacks on UK Businesses Are on the Rise 

Recent cyber-attacks on UK-based engineering firms IMI and Smiths Group have reinforced the risks businesses face. In early February 2025, Birmingham-based IMI suffered a cyber-attack in which unauthorised access was gained to its systems. This breach came just days after a similar attack on Smiths Group, another major engineering company.

While the full extent of these breaches is still being assessed, incidents like these highlight a stark reality: cyber criminals continue to actively target UK and European businesses, and the reputational and financial fallout can be severe. (Source: IT Pro)

Why Cyber Security is a Reputation Issue 

Take British Airways:  a data breach exposed the personal information of over 400,000 customers. The reputational impact was significant, with customers questioning whether BA had done enough to protect their data.

But not only that, they were then fined and additional £20 million for not protecting customer data. 

But the reputational damage is the reason why reported cyber attacks are only the tip of the iceberg – companies do not want to be the latest headline trumpeting a data breach. 

It is difficult to quantify the reputational damage caused by cyber attacks. 

But, as Warren Buffet is quoted as saying:  

“It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you'll do things differently.” 

The Long-Term Impact of a Cyber Attack 

You might assume that share prices recover after a breach, so the damage is short-term. While this is sometimes true, reputational damage is far harder to measure and repair.

Customers, partners, and stakeholders expect transparency, swift action, and visible improvements in security. A poorly handled cyber incident can erode long-term trust and push customers towards competitors. In contrast, companies that demonstrate strong cybersecurity measures and rapid, responsible responses to breaches can strengthen their reputations over time.

Proactive Cyber Security: Staying Ahead of the Threat

In today’s digital economy, businesses must demonstrate that they are taking cyber security seriously. This is not just a legal requirement—it’s a commercial necessity. 

Whilst companies must comply with GDPR and industry-specific security standards (like NIS2 and DORA in Europe), just ticking the boxes is not enough.  

Whilst legislation requires companies to train their staff on cyber security awareness, just watching a video every now and then really is not good enough.

While customers may not always read privacy policies, they expect their data to be protected. If a company fails to meet those expectations, the backlash—both in lost business and reputational harm—can be severe.

What Can Your Business Do? 

To protect your business’s reputation and financial health, you must secure every possible entry point for cyber criminals.

This includes:

✔ Advanced Cyber Security Technology – Firewalls, encryption, and multi-factor authentication are essential. 
✔ Employee Training – Cyber criminals use psychology as much as technology. If staff don’t recognise the risks of phishing emails, malicious links, or social engineering tactics, and the way they are used to deceive, your organisation remains vulnerable. 
✔ Compliance with UK & EU Regulations – Ensuring that your business meets GDPR and NIS2 standards will help mitigate risks and demonstrate responsibility to customers.

At Psybersafe, we help organisations across the UK and Europe—including financial institutions and engineering firms—strengthen their cyber defences with ongoing online training based on behavioural science research. Combining technical security measures with behavioural training creates a safer, more resilient business and reinforces a reputation for serious cyber security.

We love behavioural science. We’ve studied it and we know it works.  Why not contact us at Dit e-mailadres wordt beveiligd tegen spambots. JavaScript dient ingeschakeld te zijn om het te bekijken. to see how we can help your organisation gain better, long-term cyber security habits?  If you want to know more about the science of persuasion and influence and behavioural science in general have a look at our sister site https://influenceinaction.co.uk/

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Mark Brown is a behavioural science expert with significant experience in inspiring organisational and culture change that lasts.  If you’d like to chat about using Psybersafe in your business to help to stay cyber secure, contact Mark today.