The Latest Data on Cyber Threats Facing Ottawa & Canadian Small & Mid-Sized Businesses
Cybercrime targeting Canadian SMBs surged in late 2024 and throughout 2025, and it’s only getting more aggressive heading into 2026. From ransomware to phishing campaigns to AI-driven threats, attacks are not only more frequent, but more expensive and more sophisticated.
This report highlights the most up-to-date cybersecurity statistics affecting Canadian businesses, with a focus on SMBs like those across Ottawa. Whether you’re a 5-person tech company or a 50-person professional services firm, the message is clear: the threats are real and rising. Below are the key trends and risks EVERY Ottawa-based SMB should know…
How Common Are Attacks?
- 86.5% of Canadian organizations experienced at least one cyberattack in the past 12 months.
(CDW Canada, 2024) - Canada ranks second globally for countries most affected by ransomware, driven by extortion, AI exploitation, and supply chain issues.
(KELA, 2025) - Ransomware attacks are expected to rise 40% by 2026 - representing a five-fold increase since 2020.
(QBE Canada, 2025)
What’s the Cost?
- The average cost of a data breach in Canada hit $6.98 million CAD in 2025— up from $6.32 million CAD in 2024.
(IBM Cost of a Data Breach Report, 2025) - Unsanctioned AI tools used within the workplace add approximately $308,000 CAD to the total breach costs.
(IBM Cost of a Data Breach Report, 2025)
- 76% of Canadians say they’ll stop doing business with an organization after a data breach, and nearly half of those won’t come back.
(AuthO’s Customer Identity Trends Report 2025)
Where Are SMBs Falling Short?
- Only 11% of Canadian SMBs have a formal incident response plan while 52% have none.
(Insurance Bureau of Canada, 2025) - 74% of Canadian businesses that experience a ransomware attack end up paying the ransom - with average payments nearly $25,000.
(CIRA Cybersecurity Survey, 2025)
- Only 22% of Canadian businesses carry cyber insurance, with only 12% having a dedicated cyber insurance policy.
(Insurance Bureau of Canada, 2025)
What Ottawa Businesses Should Take Away from These Findings (Hint: You Need Proper Cybersecurity Services in Ottawa)
Ottawa SMBs often assume they’re too small or too local to be targeted, but that’s exactly what makes them a top target. Attackers exploit low cybersecurity readiness, and the financial consequences can be devastating. This risk is magnified for companies without a response plan or localized threat mitigation. But if SMBs address these gaps now, they can significantly reduce their risk and strengthen their resilience throughout 2026. If you don't have a cybersecurity firm in Ottawa, we highly recommend working with one.
Our Top 5 Cybersecurity Recommendations for Ottawa SMBs
Cypher Systems has been operating in Ottawa since 1998 - helping SMBs stay safe against cybercrime as it’s evolved over the years. We’ve served over 500+ businesses in various industries. Here’s our top 5 recommendations for SMBs looking to ramp up their cybersecurity efforts this year:
- Create an Incident Response Plan: Don’t wait for a breach - build a clear plan outlining how your business will respond if one occurs.
- Invest in Employee Cyber Awareness Training: Human error is still the #1 cause of breaches. Regular training helps prevent phishing and social engineering attacks.
- Secure and Patch All Systems Regularly: Most ransomware attacks target unpatched software. Keep all of your systems and tools up-to-date and patched regularly.
- Review Your Insurance Coverage: If you don’t already have cyber insurance that includes business interruption coverage, now is the time to reassess.
- Limit the Use of Unsanctioned AI Tools: Shadow IT and unapproved AI tools increase risk and breach costs. Create internal policies and vet all tools properly.
Cybersecurity isn't just about tools or software anymore. It's about visibility, preparedness, and strategy. If you’re ready to start strengthening your cybersecurity measures, we offer complimentary consultations to review your risk exposure and opportunities for improvement. Contact us now at (800) 864-2797.
