Cyber Threats Surge as Canadian Business Leaders Face Growing Risks

In an increasingly digital world, Canadian businesses are feeling the impact of evolving cyber threats more than ever before. According to the 2024 Travelers Canada Risk Index, two-thirds of business leaders in Canada are concerned about cyber risks, a figure that has risen from last year’s 61 percent. With cyber threats now the top concern among business leaders for the second year in a row, the urgency for proactive measures is clear.

Conducted by The Travelers Companies, the survey gathered responses from 1,000 decision-makers in Canadian small- and medium-sized businesses. Michael Trendler, Managing Director of Specialty Insurance at Travelers Canada, highlights the situation’s gravity, stating that “as technology continues to advance, cyber threats continue to grow.” He emphasizes the need for organizations to consider both cyber insurance and regular employee education as essential defenses.

Interestingly, despite these mounting risks, fewer businesses are purchasing cyber insurance. Currently, only 66 percent of respondents have cyber insurance, down from 72 percent the previous year. The survey indicates that 32 percent of companies avoid cyber insurance due to cost, while 29 percent feel their current protections are adequate. This drop occurs at a time when nearly 20 percent of businesses report experiencing a cyber incident they chose not to report, largely out of concern for their reputation or protecting sensitive information.

Unauthorized access to company financial accounts has emerged as the leading cyber risk for Canadian businesses, with 60 percent of respondents listing it as their top concern—a sharp increase from sixth place last year. Additional major concerns include the compromise of client records (59 percent) and security breaches that grant unauthorized access to computer systems (59 percent). With cybercriminals increasingly targeting these vulnerabilities, the call for strong cyber protocols has never been more urgent.

The repercussions of cyberattacks have been felt across Canada. For example, the Health Employers Association of British Columbia and the Toronto Public Library experienced cyber incidents that compromised employee data and essential services. Such breaches serve as stark reminders of the persistent threats that organizations face, regardless of industry or size.

Cybercriminal activity, according to cybersecurity firm Trend Micro, also surged globally in 2023, with 85.6 billion threats blocked in the first half of the year alone. These numbers reflect a 27 percent increase from the previous year, underscoring the escalating challenges businesses face in securing their data.

To protect against such cyber risks, the U.S. Federal Communications Commission (FCC) offers practical advice, such as training employees in cybersecurity principles, securing networks with firewalls, creating unique user accounts, and implementing robust password management protocols. According to the FCC, having a strategic approach to cybersecurity is essential for protecting businesses, their customers, and their data.

Directpath Global Technologies (DGT) is committed to supporting businesses in addressing these risks. As a Managed Security Service Provider (MSSP), we offer a range of services, including Mobile Threat Defense (MTD), Extended Detection and Response (XDR), Vulnerability Risk Management as a Service (VRMaaS), and virtual Chief Information Security Officer (vCISO) support. Additionally, our advanced Artificial Intelligence Division customizes solutions to enhance cybersecurity measures and streamline other aspects of business operations. These services enable companies to take a proactive stance against evolving cyber threats.

With risks mounting and cybercriminal tactics advancing, Canadian businesses must prioritize cybersecurity as a core component of their overall strategy. By combining robust cyber protections, informed employees, and, where applicable, specialized support, businesses can navigate today’s digital landscape more securely.

Source: 2024 Travelers Canada Risk Index and Canadian HRReporter