The COVID-19 pandemic did more than infect people in 2020. This crisis also forced businesses to digitize, exposing them to more cyber risks, a new report has found.

The Canadian Federation of Independent Business (CFIB) conducted a survey and found that since March 2020, nearly a quarter of businesses have experienced cyberattacks. Of those businesses, 5% said that the cyberattack against them was successful.

CFIB noted that the figure takes into account about 61,000 small and mid-sized businesses that were victims of cyber fraud last year, relative to the whole economy.

This organization also found the following details:

• Over 80% of businesses that experienced a cyberattack said it happened through email scams and phishing attempts.
• 50% said they experienced a cyberattack after encountering malicious software.
• The businesses most susceptible to cyber fraud are:
• Those with 20 or more employees
• Those who allowed their employees to work remotely or made any changes to their online presence
• Those in the manufacturing, wholesale trade, business services and enterprise and administration management sectors

CFIB vice president of national affairs Jasmin Guenette stated, "While many small businesses have adapted to the pandemic by adopting new technologies, remote work arrangements and ecommerce platforms, these changes have also created new opportunities for cyberattacks. It's more important than ever for small firms to protect their information systems."

Andreea Bourgeois, CFIB senior analyst added her thoughts to this new risk of cyberattacks, "When a small business suffers a cyberattack, the effects can be very heavy, from stress and financial loss to compromised personal and banking information and negative impacts on business relationships," "Many are investing more in their IT infrastructure – $6,700 on average – but beyond that, they have few recourses if a cyberattack is successful."

The recommendation the CFIB put forward for businesses to protect themselves against the risk of cyberattack is to invest in cyber insurance coverage. For information on cyber insurance and how you can make sure your business is fully protected, contact your OTC Insurance broker today. We have also developed a score card to help you evaluate your level of risk as you plan your risk Management.  Simply provide your details in the form and we’ll send you the free, no-obligation scorecard.

Click to download the free scorecard and assess your risk.