As societies increase their reliance on digital infrastructure, regions with high levels of digital adoption face heightened exposure to cyber vulnerabilities. The Nordics has emerged as one of the most targeted regions by cybercriminals due to its high level of IT implementation.
For example, Norway reported one of the lowest cash usage rates globally in 2024, with only 2% of transactions conducted in cash—Sweden closely follows this trend2. The shift toward cashless economies increases the vulnerability of payment systems to cyberattacks. A successful breach could disrupt essential societal functions, turning everyday digital conveniences into critical points of exposure.
Critical cyber trends emerging in the Nordic region
- Sweden leads regional ransomware activity: Sweden accounts for approximately half of all ransomware incidents reported across the Nordic region, with the manufacturing sector being disproportionately affected. This trend highlights the sector's vulnerability due to its reliance on operational technology and complex supply chains.
- Finland targeted by sophisticated phishing campaigns: Finland has seen a marked increase in advanced phishing attacks targeting both organisations and individuals. These campaigns often leverage social engineering and spoofed communications to bypass traditional security measures3.
- Denmark faces credential and financial data breaches: Denmark is experiencing a surge in credential theft and financial data compromises, impacting multiple industries. The rise in these incidents underscores the need for enhanced identity protection and data governance frameworks.
- Norway fuels cybersecurity market expansion: Norway's cybersecurity market is valued at USD 260 million in 2025 and is projected to reach USD 395 million by 2030, reflecting a compound annual growth rate (CAGR) of 8.5%. Key drivers include state-sponsored cyberattacks targeting offshore energy infrastructure, accelerated cloud adoption in the public sector, and strengthened national data sovereignty regulations4.
Key factors affecting the cyber landscape
As technological advancements accelerate, organisations are increasingly exposed to the risks associated with system failures and data breaches. Cybercriminals are leveraging sophisticated methods, including double and triple extortion ransomware, to encrypt systems and demand payment. The widespread availability of hacking tools has enabled threat actors to execute complex, multi-stage attacks that combine data exfiltration with business interruption.
Artificial Intelligence (AI) presents both a transformative opportunity and a significant vulnerability. AI-enhanced phishing campaigns are becoming more refined, with malicious actors using machine learning algorithms to craft highly personalised and convincing social engineering tactics that evade traditional security awareness measures. As AI adoption grows, experts anticipate a surge in cyber warfare incidents, targeting critical information networks for strategic or military objectives5.
The persistent threat of state-sponsored cyberattacks continues to escalate, employing a diverse array of tactics. Amid rising geopolitical tensions, cybercriminals are increasingly targeting critical infrastructure to inflict economic damage. The renewable energy sector, particularly in the Nordic region, has seen a rise in cyber threats due to recent investments and the deployment of smart grid technologies, which have introduced new digital vulnerabilities.
Financial institutions across the Nordics are facing heightened cyber risk amid ongoing geopolitical instability and global trade disputes. Nation-state actors, organised cybercriminal groups, and hacktivist collectives have intensified their focus on the region's financial sector, frequently deploying Distributed Denial of Service (DDoS) attacks to disrupt operations6.
In response, the forthcoming implementation of the EU Network and Information Systems Directive 2 (NIS2) aims to elevate cybersecurity standards across member states. This legislation will significantly influence how organisations manage cyber compliance, incident reporting, and executive accountability. Businesses must prepare for increased regulatory oversight and the potential for substantial penalties resulting from inadequate cybersecurity practices.
"Understanding the potential impact of a cyber incident is crucial to any business, especially considering the increasing number and diverse nature of attacks."
Patrik Ståhl, Senior Insurance Broker, Financial Lines & Cyber
The impact on businesses
The financial impact of cyber incidents goes beyond immediate response expenses and ransom payments. Organisations are increasingly confronted with prolonged operational disruptions, regulatory penalties, legal liabilities, reputational harm, and long-term competitive disadvantages due to intellectual property theft.
According to IBM's Cost of a Data Breach Report, the global average cost of a data breach in 2024 reached $4.9 million, marking a 10% increase from the previous year and representing the highest recorded figure to date. Recovery efforts often span several months beyond initial system restoration, as companies work to regain customer trust and ensure compliance with regulatory requirements.
Large enterprises are disproportionately affected, with 76% of C-suite security executives expressing concern over the growing sophistication of emerging cyber threats7. This heightened vulnerability stems from their expansive digital infrastructures, high-value data assets, complex third-party integrations, and global operations—factors that complicate comprehensive security oversight.
Cyber incidents also pose significant risks to digitally interconnected supply chains. A notable example is the 2024 Global IT Outage, where a misconfigured update led to the crash or repeated rebooting of 8.5 million operating systems, disrupting critical services across multiple countries. Although not the result of a cyberattack, the event underscored the dangers of over-reliance on single-vendor solutions and revealed systemic exposure to third-party failures—even among organisations with robust cybersecurity frameworks. The incident prompted many Nordic businesses to reassess their resilience against external dependencies.
Building cyber resilience
As cyber threats continue to grow in sophistication and scale, organisations must take a proactive stance by embedding cybersecurity into core business operations and strategic decision-making. This approach should address not only direct threats but also systemic vulnerabilities across the enterprise.
Best practices and mitigation strategies
- Adopt multi-factor authentication (MFA): Implement MFA across all critical systems to add a layer of security and reduce the risk of unauthorised access
- Implement zero-trust architecture: This will allow users to use their credentials every time they log in, ensuring no implicit trust is placed within the network perimeter
- Advanced threat detection: Utilise threat detection systems with AI and machine learning to detect abnormal behaviour patterns indicating compromise and automate initial response actions to potential threats
- Conduct regular security awareness training: Educate employees with scenario-based sessions such as phishing exercises to test their ability to identify and report phishing emails
- Business continuity planning: Focus on alternative operational procedures, stakeholder management plans and communication strategies during extended system outages
- Incident response planning: Have an emergency response protocol to identify detailed procedures and tackle critical risk scenarios with early preparations
- Penetration testing: Assess current security of your IT infrastructure by conducting an ethical hack of your network to identify vulnerabilities and how much damage could be done in the event of a breach
- Supply chain security assessments: Assess supply chain security through regular audits from critical vendors and service providers to identify and mitigate third-party risks
- Cyber insurance: Safeguard your organisation's financial stability with comprehensive cyber insurance covering recovery costs, legal expenses, lost revenue and more
"At Gallagher, we are deeply committed to raising awareness about cyber risk among our clients. To address our clients’ unique needs, we have developed tailored cyber solutions, from both an insurance and risk management perspective, focusing on improving penetration rates across all segments and providing robust protection against evolving cyber risks."
Aldo Borsani, Head of Cyber & Financial Lines Europe
