Less Than Half of Canadian SMEs Acknowledge Cyber Attack Vulnerability, Survey Finds

A series of surveys and expert analyses reveal that Canadian small and medium-sized enterprises (SMEs) are significantly underestimating their vulnerability to cyber attacks despite a high incidence of breaches, with 73% of small businesses having already experienced a cybersecurity incident. Less than half of these SMEs recognize their susceptibility to cyber threats, and only 22% have cyber insurance, with even fewer holding dedicated stand-alone policies, leaving them financially exposed to the costly aftermath of attacks involving forensic investigations, legal fees, and public relations efforts. Confidence in their ability to withstand cyber incidents remains high among SMEs, yet only about 47% feel prepared, and less than half have implemented cyber defenses. The rise of artificial intelligence is further complicating cyber risk protection, with many SMEs lacking adequate policies or training to address new threats. Additionally, small advice businesses are particularly attractive targets due to the sensitive client data they hold, and many lack the infrastructure and expertise to manage breaches effectively, leading some to turn to outsourcing cybersecurity despite the costs. Experts emphasize that the financial and reputational damage from cybercrime can be severe, underscoring the need for SMEs to enhance their cybersecurity measures and insurance coverage to mitigate these growing risks.