Cyberattacks drive rising data breaches and hidden business costs

Cybersecurity incidents present significant financial and reputational challenges for businesses. In the Netherlands, the Dutch Data Protection Authority (Autoriteit Persoonsgegevens) reported 39,407 data breaches in 2025, an increase from the previous year, with 2,428 caused by cyberattacks.

Cyber insurance specialist Stoïk identifies several hidden costs associated with these incidents, particularly for small and medium-sized enterprises (SMEs). Beyond direct damage, companies face costs from operational downtime, delays in service, and ongoing fixed costs while systems are unavailable. For companies with an annual turnover of 25 million euros, Stoïk estimates average damages between 58,000 and 92,000 euros, even when response efforts begin within one hour.

Research from the University of Amsterdam regarding crisis communication highlights the reputational risks. A study by Noa Melkman found that consumers react more negatively when organizations claim an attack was beyond their control or emphasize that they met all security standards. Instead, organizations that take responsibility and offer apologies tend to manage consumer anger more effectively, even when the company is technically a victim of a crime.