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Cyber Resilience In Cyprus Tested By Rising Cyberattacks

Escalating Cyber Threat Landscape

Recent nationwide surveys conducted by the Communications Commissioner and the Digital Security Authority reveal that cyberattacks in Cyprus are not only frequent but are intensifying. Over the past 12 months, one in three individuals and more than half of businesses reported experiencing a cyber incident, highlighting growing pressure on digital security systems.

Business Under Siege

A survey of 459 companies across multiple sectors, conducted between September and November 2025, found that 53% experienced a cyberattack or data breach within the past year. The figure marks an increase from 47% in 2024 and 49% in 2023.

On average, businesses reported one cyberattack every eight days, compared with one every 10 days a year earlier. Among affected companies, 51% reported financial losses averaging €12,000, slightly lower than previous results.

Phishing remains the most common attack method, accounting for 44% of incidents. Although the share has declined slightly, 75% of companies said phishing was the most recent form of attack they encountered.

The survey also found gaps in preparedness. Nearly one in four organizations had not updated cybersecurity policies in more than a year, while only 22% participated in cybersecurity training initiatives in 2025. Companies that invested in training reported stronger defensive outcomes.

Individual Vulnerability

A separate survey of 1,043 individuals conducted between August and September 2025 showed that people faced an average of 25.9 cyberattack attempts during the year, slightly below previous levels.

Around one-third of respondents said they had been affected by a cyber incident, with 17% reporting financial losses averaging €141. The 35–44 age group recorded the highest financial impact, marking a shift from earlier trends that showed higher exposure among younger users.

Phishing remained the leading attack method for individuals, representing 22% of incidents.

Despite widespread exposure to cyber risks, awareness levels remain limited. Among respondents who had not experienced an attack, 89% said they were uncertain about their future online safety. In addition, 74% were unaware of available cybersecurity training programs.

Those who attended seminars reported practical changes, including stronger password practices, regular updates, and increased caution when interacting with unfamiliar online environments.

Strengthening Cybersecurity Measures

In response, the Digital Security Authority plans to expand educational outreach through seminars and awareness campaigns aimed at both businesses and individuals.

The initiative is designed to strengthen cybersecurity resilience across Cyprus as organizations and consumers face a growing volume of digital threats.

Mercedes-Benz Posts Higher Profit Despite China Slowdown

Mercedes-Benz reported stronger-than-expected second-quarter results, lifting its shares on Tuesday despite mounting pressure from Chinese automakers and a weaker outlook for sales and revenue.

The earnings provided a boost for Europe’s auto sector, where manufacturers continue to grapple with tariffs, softer demand and intensifying competition from Chinese rivals. Volkswagen, Mercedes-Benz and BMW have all accelerated restructuring efforts in response.

Cost Discipline Lifts Quarterly Profit

Mercedes-Benz shares rose as much as 5.9% following the results before trimming gains to trade 3.5% higher by 1118 GMT. The company reaffirmed its profit margin guidance for its core passenger car business after reporting an adjusted return on sales of 4.0% for the second quarter, above market expectations and within its 3% to 5% target range.

“In an environment where some automakers are ringing alarm bells on their competitive positioning, Mercedes delivered a clear and confident message,” Morningstar analyst Rella Suskin said.

Second-quarter operating profit increased 22% to €1.5 billion ($1.7 billion), despite a 3% decline in revenue. Lower administrative and research and development costs, together with strong performances from the financial services and vans divisions, supported earnings, while the results also included a €131 million gain related to the planned sale of leasing subsidiary Athlon.

China Remains The Key Pressure Point

Despite stronger profitability, Mercedes continues to face a challenging market environment. Sales in China fell 30% during the second quarter, prompting the company to abandon earlier expectations for stable car sales and group revenue. It now expects both to decline slightly from a year earlier.

BMW also lowered its outlook in June following a deeper-than-expected slowdown in China, highlighting the pressure facing Germany’s premium carmakers. At the same time, Mercedes said Chinese manufacturers are increasingly expanding into European markets, although Chief Executive Ola Kaellenius said their focus remains on higher-volume segments rather than the premium market.

“But that is not a reason to sit back and be relaxed,” he said.

Manufacturing Shift Continues

Mercedes is also reshaping its manufacturing footprint. The company said its German factories will undergo a more aggressive push toward leaner production, although it declined to provide further details while talks with labour representatives continue. Production is also being expanded in lower-cost Eastern European locations, including Hungary, where the company is increasing capacity at its Kecskemet plant, as well as in Poland.

Chief Financial Officer Harald Wilhelm said the full-year margin for the passenger car division is expected to come in at the lower end of the company’s guidance range, reflecting a higher share of electric vehicle sales in Europe, which remain more expensive to produce and continue to weigh on profitability.

“We must continue to work flat out to reduce costs so that we can remain competitive on the prices of our products,” Kaellenius said.

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