Leading cybersecurity provider Sophos has released findings from a new study quantifying the financial impact of various cybersecurity controls on cyber insurance claims. The research compares the effect of endpoint solutions, EDR/XDR technologies, and MDR services on claim amounts, offering valuable insights for both insurers and organizations.

Sally Adam, Senior Director, Solution Marketing at Sophos, said, “Every year, organisations spend huge amounts of money on their cybersecurity. By quantifying the impact of controls on the outcome of cyberattacks, this study enables them to focus their investments on the most cost-effective options. At the same time, insurers have a major influence on cybersecurity spending through the controls they require of organisations wishing to be covered and the discounts they offer when a given scheme is in place. This study enables them to encourage investments that can make a real difference to incident outcomes and the resulting claim amounts.”

The Sophos study reveals a dramatic difference in cyber insurance claims: organizations using MDR services claim a median compensation of just $75,000, a staggering 97.5% less than the $3 million median claimed by organizations relying solely on endpoint solutions. This means that endpoint-only users typically claim 40 times more in the event of an attack. The study attributes this significant reduction to the rapid threat detection and blocking capabilities of MDR services, which can effectively prevent extensive damage.

The study also highlights a clear benefit to combining EDR or XDR with endpoint solutions, as the average insurance claim for users of these tools is just $500,000, which is one-sixth of the $3 million average claim for those using only endpoint solutions.

The Sophos study indicates that the predictability of cyber insurance claims varies significantly depending on the security controls in place. Claims from organizations utilizing MDR services show the highest predictability, suggesting consistent and reliable threat mitigation. This is likely due to the 24/7 expert monitoring, investigation, and response that allows for swift action against threats at any time. Conversely, claims from users of EDR/XDR tools are the least predictable, implying that their effectiveness in preventing major damage heavily depends on the user’s expertise and speed of response.

The Sophos study also reveals significant differences in recovery times from ransomware attacks. Endpoint solution users average a 40-day recovery, while EDR/XDR users take the longest at 55 days. In stark contrast, organizations using MDR services recover the fastest, with an average downtime of just three days. These findings underscore MDR’s effectiveness in minimizing the impact of cyberattacks and highlight the less predictable recovery experiences associated with EDR/XDR tools, whose success is dependent on user expertise.

Adam concludes, “The research confirms what many people instinctively know: the type of security solution used has a significant impact on cyber insurance claims. Cyberattacks are inevitable, but defences are not. These results are a useful tool for organisations wishing to optimise their cyber defence and their return on investment in cybersecurity. They will also be useful for insurers looking to reduce their exposure and offer suitable policies to their customers.”

State-sponsored cyber threats, including Advanced Persistent Attacks (APTs) and hacktivism, saw a sharp rise in the Middle East during 2024, with GCC countries identified as primary targets. These cyberattacks, largely driven by geopolitical tensions, are highlighted in Group-IB’s High-Tech Crime Trends Report 2025.

The report offers a detailed analysis of the interconnected nature of cybercrime and the shifting threat landscape in the Middle East and Africa. It provides actionable insights for businesses, cybersecurity professionals, and law enforcement to strengthen their defense strategies. While APTs in the Middle East saw a 4.27% rise compared to a global surge of 58%, a significant 27.5% of these state-backed espionage threats specifically targeted GCC nations, underlining the region’s vulnerability.

Commenting on the release of the report, Ashraf Koheil, Regional Sales Director MEA at Group-IB, said: “Our report captures the dynamic and complex nature of cyber threats faced by the Middle East today. It shows that cybercrime is not a collection of isolated incidents, but an evolving ecosystem where one attack fuels the next. From sophisticated state-sponsored attacks to rapidly evolving hacktivism and phishing campaigns, the insights presented in this report are essential for organizations seeking to strengthen their cybersecurity defenses.”

GCC nations remained prime targets for cyberattacks in 2024 due to their strategic economic and political significance. Other notable targets included Egypt (13.2%) and Turkey (9.9%), reflecting their geopolitical roles, while countries such as Jordan (7.7%), Iraq (6.6%), Nigeria, South Africa, Morocco, and Ethiopia also faced rising threats.

The Middle East and Africa (MEA) ranked third globally for hacktivist attacks, accounting for 16.54% of incidents, trailing Europe (35.98%) and Asia-Pacific (39.19%). Key industries affected included government and military sectors (22.1%), financial services (10.9%), education (8%), and media and entertainment (5.2%), with attacks often targeting critical infrastructure and essential services. These assaults were largely fueled by geopolitical tensions, serving as tools for ideological expression or political retaliation.

The report also highlighted persistent cybersecurity challenges in the MEA region, such as phishing and data breaches. With rapid digital transformation, the region has become a prime target for sophisticated scams, particularly in the energy, oil and gas (24.9%) and financial services (20.2%) sectors, driven by economic motives. Phishing attacks continue to be a major threat, heavily affecting internet services (32.8%), telecommunications (20.7%), and financial services (18.8%) in the META region.

“We must embrace a collective defense strategy that unites financial institutions, telecommunications providers, and law enforcement agencies. By sharing intelligence, coordinating proactive security measures, and executing joint actions, we can disrupt fraudulent activities before they cause harm. This collaborative approach not only enhances our ability to detect and prevent fraud but also strengthens the resilience of our critical infrastructure, protects our national security,” added Ashraf Koheil.

The report revealed that ransomware attacks in the MEA region remained relatively low, with only 184 incidents, marking the lowest globally. However, significant concerns persist regarding Initial Access Brokers (IABs) and the vulnerabilities they exploit. In 2024, IAB activity was notable, with GCC nations (23.2%) and Turkey (20.5%) as the most targeted areas. Egypt reported the highest number of compromised hosts (88,951), followed by Turkey (79,789) and Algeria (49,173), highlighting substantial cybersecurity gaps.

Stolen credentials and sensitive corporate information sold on the dark web have become critical entry points for cybercriminals, including ransomware operators and state-sponsored attackers. The report disclosed over 6.5 billion leaked data entries, with nearly 2.5 billion unique email addresses and 3.3 billion leaked entries containing phone numbers (631 million unique). Additionally, 460 million passwords were exposed globally in 2024, 162 million of which were unique. This surge in leaked data fuels the dark web economy and heightens risks for organizations and individuals worldwide.

Dmitry Volkov, CEO of Group-IB, said, “Group-IB played an intensified role in its global fight against cybercrime and contributed to eight major law enforcement operations across 60+ countries, leading to 1,221 cybercriminal arrests and the dismantling of over 207,000 malicious infrastructures. These efforts disrupted large-scale cybercriminal networks, highlighting the critical role of collaboration between private cybersecurity firms and international law enforcement.”

The report highlighted that threat actors utilized advanced tactics, techniques, and procedures (TTPs) like social engineering, ransomware, and credential theft. Emerging methods, including the Extended Attributes Attack, the Facial-Recognition Trojan (GoldPickaxe.iOS), and the ClickFix infection chain, illustrate the growing complexity and sophistication of cyber threats in the region.

Qlik has announced findings from an IDC survey exploring the challenges and opportunities in adopting advanced AI technologies. The study highlights a significant gap between ambition and execution: while 89% of organizations have revamped data strategies to embrace Generative AI, only 26% have deployed solutions at scale. These results underscore the urgent need for improved data governance, scalable infrastructure, and analytics readiness to fully unlock AI’s transformative potential.

The findings, published in an IDC InfoBrief sponsored by Qlik, arrive as businesses worldwide race to embed AI into workflows, with AI projected to contribute $19.9 trillion to the global economy by 2030. Yet, readiness gaps threaten to derail progress. Organizations are shifting their focus from AI models to building the foundational data ecosystems necessary for long-term success.

Stewart Bond, Research VP for Data Integration and Intelligence at IDC, emphasised, “Generative AI has sparked widespread excitement, but our findings reveal a significant readiness gap. Businesses must address core challenges like data accuracy and governance to ensure AI workflows deliver sustainable, scalable value.” Without addressing these foundational issues, businesses risk falling into an “AI scramble,” where ambition outpaces the ability to execute effectively, leaving potential value unrealized.

“AI’s potential hinges on how effectively organizations manage and integrate their AI value chain,” said James Fisher, Chief Strategy Officer at Qlik. “This research highlights a sharp divide between ambition and execution. Businesses that fail to build systems for delivering trusted, actionable insights will quickly fall behind competitors moving to scalable AI-driven innovation.”

The IDC survey uncovered several critical statistics illustrating the promise and challenges of AI adoption: Agentic AI Adoption vs. Readiness:

• 80% of organizations are investing in Agentic AI workflows, yet only 12% feel confident their infrastructure can support autonomous decision-making.
• “Data as a Product” Momentum: Organizations proficient in treating data as a product are 7x more likely to deploy Generative AI solutions at scale, emphasizing the transformative potential of curated and accountable data ecosystems.
• Embedded Analytics on the Rise: 94% of organizations are embedding or planning to embed analytics into enterprise applications, yet only 23% have achieved integration into most of their enterprise applications.
• Generative AI’s Strategic Influence: 89% of organizations have revamped their data strategies in response to Generative AI, demonstrating its transformative impact.
• AI Readiness Bottleneck: Despite 73% of organizations integrating Generative AI into analytics solutions, only 29% have fully deployed these capabilities.

These findings stress the urgency for companies to bridge the gap between ambition and execution, with a clear focus on governance, infrastructure, and leveraging data as a strategic asset.

The IDC survey findings highlight an urgent need for businesses to move beyond experimentation and address the foundational gaps in AI readiness. By focusing on governance, infrastructure, and data integration, organizations can realize the full potential of AI technologies and drive long-term success.