Rising Cyber Threats: Are Canadian Businesses Falling Behind?

In today’s rapidly evolving digital landscape, cyber criminals are becoming increasingly sophisticated, and small and medium-sized businesses (SMBs) in Canada are feeling the heat. A recent survey conducted by the Insurance Bureau of Canada (IBC) reveals that 65 percent of SMB owners are concerned about the growing challenge of protecting their businesses from cyber threats, particularly with the rise of artificial intelligence (AI).

Mahan Azimi, Manager of Catastrophic Risk Policy at IBC, pointed out that AI has made cyber-attacks not only more automated but also more difficult to detect. "AI can pose a real threat to the integrity and security of any business," Azimi said. The concern is warranted—cyber criminals are now leveraging AI to create more convincing phishing scams and to adapt their methods in real-time, outpacing traditional cyber defenses.

The troubling part? Despite the escalating risk, fewer Canadian businesses are investing in cyber resilience. In 2023, 69 percent of surveyed SMBs were taking steps to reduce their cyber risks, but in 2024, that number dropped to just 61 percent. This downward trend in preparedness, combined with the growing capabilities of cyber criminals, could leave many organizations vulnerable to potentially catastrophic attacks.

The IBC survey highlights several alarming statistics:

• Nearly half of the businesses (45 percent) believe they are vulnerable to a cyber-attack, yet 62 percent do not view cybersecurity as a financial priority.

• Only 45 percent of businesses have implemented adequate defenses against cyber-attacks, and only 31 percent increased their cybersecurity protocols in the past year.

• A mere 18 percent of surveyed companies have insurance coverage against cyber-attacks, leaving many exposed to significant financial risks.

Given the growing threat, experts like Azimi urge business owners to act now. Protecting a company doesn’t have to be an expensive or overwhelming task, but it does require proactive measures.

At Directpath Global Technologies (DGT), we understand that the cybersecurity landscape is becoming more complex by the day. As a Managed Security Service Provider (MSSP), DGT offers a range of tailored cybersecurity solutions, including Mobile Threat Defense (MTD), Extended Detection and Response (XDR), Vulnerability Risk Management as a Service (VRMaaS), and more. Our advanced Artificial Intelligence Division works with businesses to enhance cybersecurity and operational efficiency across the board.

In a world where AI can be both a tool and a weapon, staying ahead of cyber threats is crucial. Canadian businesses need to reassess their cybersecurity strategies, invest in resilience, and leverage tools like cyber insurance to mitigate risks. The time to act is now.

Source: Insurance Bureau of Canada Survey, Wealth Professional