Canadian Small Businesses Dangerously Unprepared for Rising Cyber Threats

A new survey commissioned by the Insurance Bureau of Canada (IBC) reveals a troubling reality: small and medium-sized businesses across Canada remain underprepared for cyber attacks despite cybercrime hitting a global all-time high. Fewer than half of respondents believe their business is vulnerable to a breach, and only 6% strongly agree that they are at risk. This disconnect stands in stark contrast to research from the Business Development Bank of Canada, which shows that 73% of small businesses have already experienced a cybersecurity incident.

Confidence in preparedness is alarmingly misplaced. While 66% of business owners said they are confident in their ability to withstand a cyber incident, only 47% have actually implemented meaningful defenses. Cyber insurance adoption remains low as well, with just 22% carrying coverage and only 12% having a stand-alone cyber policy. Experts caution that responding to an incident often requires costly services such as forensic investigations, legal support, and crisis communications resources most SMEs simply don’t have.

The survey also highlights a growing unease around artificial intelligence and new technologies. Seventy-two percent of respondents said AI will make it more difficult to defend against attacks, yet less than half have employee training or policies in place to mitigate AI-driven scams. As businesses increasingly rely on vendors and cloud-based services, third-party risks are also emerging as a major concern, particularly around liability if customer data is compromised through external providers.

These findings emphasize that for SMEs, a cyber breach is not just an IT problem it’s a full-blown business crisis that threatens financial stability, reputation, and legal standing. The gap between perceived preparedness and actual defenses suggests that many small businesses are one attack away from a costly disruption.

This is where proactive cybersecurity partnerships matter. Directpath Global Technologies (DGT) helps organizations close these gaps by offering advanced solutions such as Managed Threat Detection (MTD), Extended Detection and Response (XDR), Vulnerability and Penetration Testing (VAPT), SOC2 readiness, VRMaaS, WAF, and vCISO services. With an advanced Artificial Intelligence Division, DGT tailors defenses not only for cybersecurity resilience but also to support broader business operations. For small and medium-sized enterprises, this means having access to enterprise-grade security strategies that scale with your business needs.

The message from this survey is clear: small businesses can no longer afford to underestimate cyber threats. Building resilience today is far less costly than recovering tomorrow. Source: CISION