The cost of cyber security attacks against the UK organisations has tripled in 2012 with rapid attacks on important intellectual property and customer data, according to a report from the UK Department for Business, Innovation and Skills.
In 2012, about 87% of small businesses and 93% of large organisations experienced a security breach.
The most terrible breaches cost small businesses about an average of £50,000 and cost large businesses, which employ more than 250 people, about £650,000.
According to the report, the number of repeat breaches has increased by 50%, with large organisations suffering an average of 113 breaches, with small businesses witnessing an average of 17.
UK Universities and Science Minister David Willetts said keeping electronic information safe and secure is vital to a company’s bottom line.
"Companies are more at risk than ever of having their cyber security compromised, in particular small businesses, and no sector is immune from attack," Willetts said.
"But there are simple steps that can be taken to prevent the majority of incidents."
Unauthorised outsiders attacked about 78% of large organisations and 63% of small businesses,up from 73% and 41% respectively compared to 2011.
Additionally, the government has appointed a unit to protect firms from the increasing threat of cyber attacks by China, Russia and Iran.
The government is also extending its Innovation Vouchers scheme to assist small businesses enhance cyber security, as part of which, small and medium enterprises can bid for about £5,000 each from a overall funding of £500,000 to improve their security.
"The package of support we are announcing today will help small businesses protect valuable assets like financial information, websites, equipment, software and intellectual property, driving growth and keeping UK businesses ahead in the global race," Willetts said.
