More than eight in ten (84%) businesses feel confident in their ability to tackle cybercrime, according to a report by Ilex International.

The Breach Confidence Index is based on a poll of more than 500 IT decision makers. It suggests more than one-quarter (27%) of respondents are “very confident” in their ability to ward of cyber attacks. A further 58% said they felt “confident”.

But the report highlights a number of potential risks firms face. They include insider threats, such as the Edward Snowden whistleblower attacks at the NSA, and poor awareness of the risks due to a lack of employee training.

The poll also revealed that 56% of small business have never experienced a security breach, compared to 49% of all businesses.

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When businesses have suffered attacks malware vulnerabilities (22%), email security (21%) and employee education (15%) have been the biggest contributors.

Defence minister Michael Fallon said that we are “standing on the frontline of a virtual war”.

“And though the warheads launched are invisible, cyber is far from a theoretical threat,” he continued.

“Our adversaries, whether revanchist Russia or evil ISIL are becoming ever more adept and determined to use cyber to force their advantage. Such dangers are only likely to grow”

Thierry Bettini, director of international strategy at Ilex International, added that “the high confidence level is worrying and completely misplaced”.

“The Breach Confidence Index shows that businesses have a false sense of security which could result in an increase in security breaches,” he continued.

“It’s important that businesses come to terms with the reality of data security breaches. If they don’t think they have been targeted yet, they will be and need to be prepared.”