Russian cyber attacks have a 10% chance of costing the UK economy at least £4 billion every single year, according to a new report.
A cyber risk assessment of the UK economy, conducted by Moody's insurers on behalf of Labour MP Graeme Downie, found that Vladimir Putin's Russia accounts for as much as 80% of all losses from state-sponsored cyber threats. A single successful attack could cost every Brit £100.
MP warns of 'hidden Putin tax'
Graeme Downie warned that Britons were paying a "hidden Putin tax" from Russia's aggression, and called for a tough response.
"A single Russia-linked cyberattack could cost the UK more than £4 billion. That's based on a serious but realistic attack, the sort with roughly a one-in-ten chance of happening in any given year," he said.
"It's equal to £100 for every UK taxpayer. I'm sure families across Britain can think of far better ways to spend their hard-earned cash than handing it to a brutal dictator."
Impact on British homes and businesses
Downie added: "Putin's cyber war isn't happening somewhere far away. It's hitting British homes and businesses right here, right now. The Putin Tax is real, and Brits are paying a far higher price than anyone feared."
The £100 figure is based on dividing the £4 billion cost between 40.8 million taxpayers.
The warnings come just weeks after German police detained a Russian man accused of being part of a cyber-crime gang which caused chaos at London hospitals and contributed to a patient's death.
RUSI analyst calls for damage assessment
Tom Keatinge, Director of the Centre for Finance and Security at the RUSI think tank, said: "We devote considerable attention to the costs our sanctions impose on Russia. We need to understand the costs Russia imposes on us. The 'Putin Tax' is paid through disrupted businesses, interrupted public services and resources diverted into recovery."
"Counting attacks is only part of understanding the threat. Government also needs to count the damage: lost production, disrupted supply chains and the cost of restoring services."
The analysis focused on cyber activity carried out, directed, or attributed to the Russian state, but not crime from criminals operating from Russia, meaning the actual figure could be even higher.
Government response
A Government spokesperson said: "The hybrid threats we face from the Russian state require an updated, modern approach to protect our national security. That is why this Government is investing in our defence and resilience capabilities ensuring we have the deterrence required to counter hostile state aggression and keep the British people safe."
"We're taking concrete action to strengthen our cyber defences against these threats through the Cyber Security and Resilience Bill, and a generational upgrade to the country's cyber defences through the forthcoming National Cyber Action Plan."
