Published on: 2025-09-29

Intelligence Report: Cybersecurity leaders underreport cyber incidents to executives – Help Net Security

1. BLUF (Bottom Line Up Front)

Cybersecurity leaders are underreporting incidents to executives, potentially creating a false sense of security and resilience within organizations. The most supported hypothesis is that fear of punitive measures and reputational damage drives this underreporting. Confidence level: Moderate. Recommended action: Implement policies that encourage transparent reporting without punitive repercussions, and enhance executive awareness of cyber threats.

2. Competing Hypotheses

1. **Hypothesis A**: Cybersecurity leaders underreport incidents primarily due to fear of punitive responses and reputational damage.
2. **Hypothesis B**: Underreporting is driven by a lack of confidence in the ability to defend against AI-driven threats, leading to selective reporting to avoid highlighting vulnerabilities.

Using ACH 2.0, Hypothesis A is better supported by the data, as the survey indicates a significant number of leaders cite fear of punitive responses and reputational damage as reasons for underreporting. Hypothesis B is less supported, as the lack of confidence in AI defense is more about preparedness than reporting behavior.

3. Key Assumptions and Red Flags

– **Assumptions**: Leaders believe that reporting incidents will lead to negative consequences. Executives lack awareness of the true cyber threat landscape.
– **Red Flags**: Potential bias in self-reported survey data. Underreporting may be more widespread than acknowledged.
– **Blind Spots**: The impact of underreporting on long-term strategic planning and resource allocation is not fully explored.

4. Implications and Strategic Risks

Underreporting can lead to inadequate resource allocation for cybersecurity, increasing vulnerability to nation-state attacks and AI-driven threats. This false sense of security may result in strategic missteps, leaving organizations unprepared for significant breaches. The geopolitical dimension is critical, as nation-state actors exploit these vulnerabilities.

5. Recommendations and Outlook

• Develop a non-punitive reporting culture to ensure accurate incident reporting.
• Enhance executive education on cyber threats to align strategic priorities with actual risks.
• Scenario Projections:
  • Best: Organizations adopt transparent reporting, leading to improved defenses and resilience.
  • Worst: Continued underreporting results in a major breach with severe reputational and financial consequences.
  • Most Likely: Gradual improvement in reporting practices as awareness increases, but gaps remain.

6. Key Individuals and Entities

– Kevin Pierce

7. Thematic Tags

national security threats, cybersecurity, counter-terrorism, regional focus