Cyberattacks cost companies customers and reputation

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Businesses are risking both financial and reputational harm with each passing cyberattack, according to a report by the Canadian Internet Registration Authority (CIRA).

The survey of 500 Canadian businesses with more than 50 employees said 44 per cent of organizations have faced a cyberattack in the past year, with 28 per cent indicating the ordeal hurt their company’s reputation, while 26 per cent said it cost them customers.

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In addition to the revenue and reputation losses, 27 per cent faced added costs to repair their systems and 17 per cent paid a ransom to restore their software.

“Cybercrime is affecting relationships in every corner of the supply chain and organizations are waking up to the liabilities and risks they face,” Jon Ferguson, vice-president of cybersecurity and DNS at CIRA, said in a news release.

“Customers demand businesses safeguard their data and organizations want to ensure that those they work with have proper cybersecurity measures in place.”

Last week, Service Inspired Restaurants Corp., which owns brands such as Jack Astor’s and Scaddabush, faced a cyberattack that impacted a section of its IT infrastructure, though its restaurants were able to operate as normal.

Earlier this year, CDK Global Inc., a software provider for 15,000 car dealerships in Canada and the United States, faced a cyberattack that halted its systems and forced salespeople to handwrite contracts.

In May, the British Columbia government faced a cyberattack from what is believed to be a state-sponsored actor, though there is no evidence any information was taken.

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An International Business Machines Corp. report in 2023 said 26 high-profile cyberattacks in Canada cost their victims a total of $6.94 million, not including the legal and public-relations costs related to the incidents.

It also took an average of 215 days for companies to contain a data breach, meaning it could take months for a company to clean up the damage from a cyberattack.

Given the frequency of cyber incidents among businesses, it makes sense that many are taking steps to protect themselves.

The CIRA survey said 82 per cent of organizations have cybersecurity insurance coverage, 55 per cent conduct mandatory cybersecurity awareness training and 43 per cent have changed their policies in response to news of cybersecurity incidents.

“Across all sectors, organizations are taking proactive steps; the focus now needs to be widespread adoption, otherwise Canadians pay the price,” Ferguson said.

With files from The Canadian Press

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Canada posted a trade deficit of $1.1 billion in August as the country witnessed a drop in crude oil exports.

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This marks the sixth straight monthly trade deficit for Canada, after revisions to previous months brought totals lower.

Forestry exports dropped 5.5 per cent to its lowest level since July 2023, possibly due to the brief rail work stoppage, while auto exports climbed 5.1 per cent.

Read more.

• Canada’s taxpayer’s ombudsperson releases report containing three recommendations to improve the Canada Revenue Agency’s service
• Today’s Data: U.S. wholesale trade for August
• Earnings: Aeon Co. Ltd., AZZ Inc.

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Canada’s energy and auto exports would also decline by 22 per cent.

Read more here.

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Today’s Posthaste was written by Ben Cousins, with additional reporting from Financial Post staff, The Canadian Press and Bloomberg.

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