REPORTS of data and cyber security incidents have risen by a fifth in a year, with fears expressed that sweeping new pan-European privacy rules could be ditched after Brexit.

The General Data Protection Regulation, which will come into force next year, will introduce a raft of changes and protections for all companies that have EU customers.

Val Surgenor, IP and technology partner at the Scottish law firm MacRoberts warned: "Any significant watering down of the [GDPR] rules could potential harm UK organisations seeking to trade in Europe."

According to the latest figures there were 1143 reports of data security and cyber security incidents to the Information Commissioner's Office in the six months to September, 2016 – nearly 200 more than the same period in 2015. Privacy breaches in the health sector made up around half of all reports.

One-in-ten alleged breaches were in local government, while 9.5 per cent of complaints were from business.

The first Europe-wide shake-up of data protection laws in 20 years will require companies that process over 5,000 data subject records each year, or employ over 250 employees, will be required to appoint a data protection officer.

Firms will be required to disclose incidents within 72 hours to the Information Commissioner’s Office (ICO).

Fines of up to €20 million or four per cent of a company’s worldwide revenue can be dished out out if an ICO investigation finds appropriate organisation or technical controls have not been put in place.

In February, last year, research from KPMG and Cyber Streetwise revealed that Scottish small businesses are the least likely of any across the UK to have taken steps to protect their data.

Many small businesses north of the border were “unprepared and unconcerned” when it comes to cyber-attacks.

One in five (19 per cent) Scottish-based small businesses and consumers who responded to the UK-wide survey admitted that they have failed to take any steps to protect their data..

Surgenor said: "Currently there is no legal requirement to report a data breach in the UK, with the exception of certain telecoms and Internet service providers, and therefore it is difficult to truly gauge the full extent of the problem, although I am sure there is a problem."

In March, last year, Glasgow-based boiler replacement company FEP Heatcare Ltd, which bombarded the public with more than two million unwanted marketing calls, was fined £180,000 by the ICO.

ICO said the firm broke rules on phone messages after it became one of Britain's most complained about nuisance callers.