Every year, billions of dollars are lost in Canada to cyberattacks, but new research shows that nearly one third (32 per cent) of Canadian small and medium-sized businesses (SMBs) that have been hit with a cyberattack aren’t even aware of the financial impact. A new study from Okta, Inc. the leading independent Identity provider, found that SMBs operate within an unfamiliar and unpredictable landscape facing far-reaching impacts on their business.

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This lack of awareness reveals a significant vulnerability, as many SMBs don’t recognize the financial consequences of cyberattacks until they face them. Just over half (58 per cent) are willing to invest in cybersecurity measures after experiencing an attack, highlighting that SMBs end up paying the price in the aftermath. About one-in-five SMBs (16 per cent) invest over $200,000 in cybersecurity measures following an attack.

“Many SMBs rely on identity via their email providers, assuming these gaps won’t be exploited. In reality, cybercriminals are targeting these weaknesses,” said Dan Kagan, SVP and Country Manager at Okta Canada. “As AI-powered attacks become more sophisticated, SMBs must strengthen their identity protections to safeguard operations and, most importantly, customer trust.”

The stressful reality of cyberattacks 

While the financial losses for Canadian SMBs due to cyberattacks are significant, the toll extends far beyond dollars. According to Okta’s research, close to 60 per cent of Canadian SMB owners rank cyberattacks as a top concern – second only to inflation and high interest rates. And nearly a third (30 per cent) of small business owners who have experienced a cyberattack, report a negative impact on their mental well-being.

The mental toll also trickles down through organizations, with close to half (47 per cent) of SMBs worried about the impact on their employees’ mental health. Smaller companies, with limited staff and stretched resources, find it even harder to rebuild trust and morale after a security breach, with over 20 per cent citing a direct impact on employee morale.

“The impacts of a cyberattack on small and medium-sized businesses in Canada are wide-reaching, encompassing not only financial but also psychological and operational repercussions that can disrupt businesses and their workforces for months,” said Kagan. “Today’s business owners need a proactive and holistic approach to cybersecurity that can scale with their operational and budget needs, and as leaders, it’s essential to not only ensure robust security measures but also to empower their teams with clarity and confidence.

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Source – Globenewswire