A new report from Mastercard shows that the average data breach costs Canadian businesses $5.64 million while only 39% of businesses are implementing adequate cybersecurity tools.
However, the average cost of data breach costs is higher for the US, at $9.4 million.
According to the report, cybercrime has increased by 600% since the COVID-19 pandemic with remote work leading to a 238% increase in cyberattacks.
The report states that the proliferation of cyber threats has increased costs with a current worldwide cost of $6 trillion, representing 1% of global GDP. The study estimates that this cost will increase by $4.5 trillion over the next few years.
In recent months, several major Canadian companies and organizations have fallen victim to cybersecurity breaches, including Indigo, Sobeys, SickKids Hospital in Toronto and the LCBO.
Mastercard also surveyed Canadian businesses and consumers and found that only half of consumers change their passwords when prompted by a platform, when hacked, or not at all. Half also reported using the same password across most of their accounts.
The survey indicates that more than half (53 percent) of Canadian consumers have experienced a security threat as they rely heavily on businesses to protect them.
Analyzing the data, 86% of Canadian consumers said they were concerned about digital security threats while 53% said they had experienced a security incident.
According to the study, to avoid potential risks, 68% of Canadian consumers prefer to use a third-party payment platform because 82% do not trust a company to protect their data.
The survey also found that 38% of Canadian consumers polled said their account had been hacked by a phishing text message, and a similar percentage had been scammed by phone.
Meanwhile, more than a third (34 percent) of Canadian businesses said they had been scammed when using internet software or services.
Additionally, 38% of Canadian businesses reported experiencing digital payment fraud while a similar percentage experienced account takeover fraud. Another 33% said their identity had been stolen while 40% said their account had been hacked.
In general, consumers worry about their identity being stolen from the information they share with retailers, data breaches at the companies they shop with, and their data being stolen through Cheat. Up to 91% say they believe companies should spend more to protect their data while 81% of consumers say they don’t trust a company to protect their information.
METHOD
The survey was conducted by The Harris Poll, with the participation of 4,009 individuals (2,002 from Canada) and 502 business leaders (102 from Canada). Individuals were interviewed from October 26 to October 31, and business leaders were surveyed from November 9 to November 15.
Reporting for this story was paid for through the Meta-funded Afghan Journalists Project in Residence.
