The global technology, media and telecoms (TMT) industry's growing reliance on digital information and technology is making it increasingly vulnerable to hack attacks, new research has claimed.

Deloitte's latest security survey claimed that over 50 per cent of TMT companies surveyed reported security breaches in the past 12 months, a third of which resulted in significant financial loss.

Mike Maddison, leader of Deloitte's Security & Privacy Services, said: " TMT companies are becoming more aware of the impact of technical security attacks because their businesses revolve increasingly around digital information and technology.

"Everything from voice telephony to prime-time television is now created and transmitted as a series of zeros and ones making it vulnerable to infection, attack and theft."

The report is based on a survey of security practices at TMT organisations around the world, and reveals that many companies are underestimating the need for security. Most are not investing enough time, money and resources to protect themselves adequately.

While the potential for financial loss is acknowledged, intangible factors such as brand damage, customer dissatisfaction, market erosion and lost productivity are often overlooked.

James Alexander, technology director at Deloitte, said: "TMT companies must recognise that they represent an increasingly attractive target.

"Media companies' content represents the basis of a global market in illegal downloads and counterfeit goods, and telecoms operators increasingly represent the gateway into the digital home and office."

External security threats such as viruses and worms get most of the attention, as well as the lion's share of resources, when it comes to digital security. Yet the risks from internal threats such as fraud, employee misconduct and human error are just as great, the study warns.

Among those companies whose security had been breached in the past 12 months, 50 per cent were attacked from within.

Deloitte said that the growing danger posed by this enemy within is "not surprising" given that portable media devices, such as memory cards, can now hold huge amounts of confidential data.

"The increasing vulnerability of the TMT sector to attack means that security is no longer a minor operating detail best left to the IT department," said Alexander.

"The industry needs to address security as a fundamental business requirement and a strategic imperative."