The Hidden Threat: Why So Many Cybersecurity Breaches Go Unreported and What Businesses Can Do About It

In today’s cyber landscape, every organization expects to face an attack. What’s far less expected, and far more dangerous, is how many of those attacks go unreported, even when they cause real, material damage.

A recent VikingCloud survey reveals a troubling reality: nearly half of cybersecurity leaders (48%) admit they did not report a material cybersecurity incident to their board of directors or executive team in the past year (Cybersecurity Dive, 2025). These are not minor system glitches or harmless phishing attempts; they are incidents with measurable financial, operational, or reputational impact.

This culture of underreporting is creating a silent epidemic, one that blinds leadership to real risks, exposes companies to regulatory and insurance liabilities, and undermines the very trust that modern businesses depend on.

A Silent Crisis: The Scope of Unreported Breaches

The VikingCloud research surveyed about 200 senior cybersecurity professionals across the United States, United Kingdom, and Ireland. Nearly half of respondents confessed that their organizations concealed or minimized major cybersecurity events, often to avoid reputational harm or internal backlash (CIO Dive, 2025).

Among the top reasons given:

• Fear of punitive action from leadership or the board (40%)

• Concerns about reputational or financial damage if the incident became public (44%)

• Internal uncertainty about what qualifies as “material” and thus reportable (Cybersecurity Dive, 2025)

The study further noted that AI-driven attacks and data exfiltration incidents are rising sharply, amplifying both the frequency and complexity of modern cyber events (CyberInsurance News, 2025). In many cases, IT teams contained breaches without formal disclosure, believing “no harm was done.” However, in the age of persistence-based malware and AI-augmented adversaries, silence often allows attackers to linger undetected.

This pattern of concealment doesn’t just obscure the true cyber-risk landscape, it perpetuates systemic vulnerability across industries.

Why Underreporting Happens

The reasons for underreporting are as human as they are technical.

First, organizational culture plays a massive role. Security teams often fear blame or punitive action from executives if they disclose an incident that suggests failure. Rather than escalating issues immediately, they choose silence hoping to fix problems quietly.

Second, communication silos between technical teams and executive leadership create a disconnect. Many boards still view cybersecurity as a technical problem rather than an enterprise risk, discouraging open communication or collaboration on incident management.

Third, compliance confusion adds to the issue. The term “material” is subjective. While financial regulators like the SEC now require disclosure of “material cybersecurity incidents,” many organizations still struggle to interpret what qualifies under that definition. This gray area allows avoidance to masquerade as caution.

Finally, reputational anxiety drives secrecy. In competitive industries, even the perception of a breach can affect stock prices, investor confidence, and customer trust. Some leaders prefer to stay quiet, believing that “no one needs to know.”

But this mindset is increasingly dangerous. As attacks grow more sophisticated and interconnected, the longer an organization hides a breach, the higher the eventual cost.

The Hidden Costs of Silence

Failing to disclose material incidents doesn’t just delay recovery, it multiplies risk.

From a governance perspective, boards are deprived of accurate risk data, which prevents them from making informed investment or mitigation decisions. The result is an organization flying blind, believing it’s secure when it isn’t.

From a regulatory standpoint, the risks are even greater. In the United States, new SEC rules now require public companies to disclose material cybersecurity incidents within four business days of determining their significance. Underreporting could expose executives to penalties or shareholder litigation (Cybersecurity Dive, 2025).

For cyber insurance, the problem is just as serious. Insurance providers rely on full disclosure of past incidents when underwriting policies. If a company conceals events and later experiences a major breach, coverage can be denied, leaving the business financially exposed (CyberInsurance News, 2025).

Operationally, unreported incidents often mean incomplete remediation. Without a full post-mortem or transparent escalation, root causes go unresolved, making repeat breaches likely. Attackers frequently exploit the same vulnerabilities multiple times, confident that their victims are unwilling to confront the problem publicly.

In short, the cost of silence always outweighs the cost of transparency.

How CCS Helps Companies Break the Cycle of Underreporting

At Compliance Cybersecurity Solutions (CCS), we believe that transparency is the foundation of cybersecurity resilience. Knowing when, how, and to whom to report is just as critical as detecting and remediating the threat itself.

The VikingCloud report underscores a new reality. Companies don’t just need better defenses, they need better visibility, communication, and governance. CCS helps organizations close these gaps through a multi-faceted approach designed to bring clarity, accountability, and readiness across every layer of the business.

1. Cyber Risk Visibility & Transparency Audits

CCS begins by conducting an in-depth Cyber Risk Transparency Assessment, mapping out how incidents are currently detected, escalated, and communicated. We identify where breakdowns occur whether it’s a lack of incident response playbooks, undefined reporting criteria, or siloed communication channels.

The result is a clear roadmap that defines responsibilities, escalation thresholds, and reporting procedures aligned with regulatory expectations and board oversight.

2. Governance and Board Advisory

Many executives want to understand cybersecurity but lack actionable visibility. CCS bridges that gap by creating board-level cyber risk dashboards and facilitating workshops that translate technical incidents into business risk terms.

Our advisory services help boards establish governance frameworks that support timely, non-punitive disclosure, ensuring leadership gets the information it needs without discouraging transparency.

3. Incident Response and Escalation Readiness

CCS’s Incident Response and Governance Integration (IRGI) program enhances traditional incident response by embedding structured reporting and communication protocols. When incidents occur, this ensures both technical and executive stakeholders receive coordinated, compliant, and timely updates.

This not only satisfies regulatory requirements but also builds organizational trust, replacing fear of punishment with confidence in process.

4. Compliance and Insurance Alignment

We also help clients align cybersecurity practices with the expectations of regulators and insurers. CCS performs cyber insurance readiness assessments, evaluating whether current policies and procedures meet disclosure standards.

This proactive approach minimizes the risk of coverage disputes and demonstrates due diligence to underwriters and auditors.

5. Culture and Training Programs

Finally, we address the human element. CCS offers tailored cyber culture transformation programs designed to normalize transparency. By combining executive workshops, simulated breach scenarios, and internal communications coaching, we help organizations shift from a culture of fear to a culture of accountability.

When employees and security teams know that reporting an incident leads to problem-solving, not punishment, breaches are addressed faster, mitigated more effectively, and communicated responsibly.

Why This Matters Now

The VikingCloud findings reveal more than just a communication issue, they expose a systemic failure in how companies perceive and manage risk. As cyber threats grow more sophisticated, the organizations that survive won’t be those with the most tools or biggest budgets, but those with the clearest visibility into what’s really happening inside their networks.

AI-driven threats, ransomware campaigns, and supply chain attacks are becoming too complex to contain quietly. Transparency isn’t just compliance, it’s resilience.

For CCS, this evolution affirms our mission: to help companies not only prevent attacks but also manage the truth when incidents occur. We help turn cybersecurity into a board-level competency, not just a technical function buried in the server room.

Final Thoughts

Underreporting breaches might feel safe in the short term, but it’s a long-term liability. In the modern digital economy, the real risk is what you don’t know or what you choose not to admit.

By embracing transparency, companies strengthen their credibility, enhance resilience, and build a culture that can respond decisively under pressure.

With CCS as your trusted partner, you can close the gap between detection and disclosure — ensuring your organization remains compliant, confident, and ready for whatever comes next.

References

Cybersecurity Dive. (2025). Many ‘material’ cybersecurity breaches go unreported: VikingCloud.
CIO Dive. (2025). Survey: Nearly Half of Cybersecurity Leaders Conceal Material Incidents.
CyberInsurance News. (2025). Cyber Risk 2025 Report: How AI and Silent Breaches Reshape the Risk Landscape.
VikingCloud. (2025). The State of Cybersecurity Reporting Survey 2025.