Cost of data breaches in Canada hit new record in 2021: IBM
The average cost of a data breach in Canada hit a record high last year as companies grappled with new cybersecurity risks during the COVID-19 pandemic.
According to a new report from IBM Security, the average cost of a data breach in Canada was $6.75 million per incident in the 2021 survey year. That's up from $6.35 million the year before and the highest since IBM first included Canada in its survey seven years ago. It's also higher than the 2021 global average of US$4.24 million ($5.34 million), which in itself is a 10 per cent increase from the prior year and the highest global average in the survey's 17-year history.
The study suggests cybersecurity efforts may have lagged behind as companies were forced to rapidly adapt to remote work during the pandemic, said IBM Security associate partner Ray Boisvert.
“This to me is a wake-up call,” Boisvert said, adding companies reported data breaches last year that were not only costly, but also hard to contain. For example, companies surveyed reported a mean time of 164 days to identify they had a breach and 60 days to contain it, one week longer than the prior year's report.
According to the study, data breaches cost $1 million more on average when remote work was indicated as a factor in the event.
“There was certainly a strong link to remote work,” Boisvert said. “We're now living in a perimeter-less environment … and trying to defend a multiplicity of inputs becomes very difficult.”
Charles Finlay, executive director of the Rogers Cybersecure Catalyst at Ryerson University, said the sheer volume of varying devices and network connections used by remote workers during the pandemic posed a cybersecurity threat.
“Employees are working from home using insecure Internet networks and computers, and the kind of security measures that would be imposed in a corporate environment in a workplace just are not always present,” Finlay said.
He added that a crisis like the global pandemic can also be easily exploited by cybercriminals - for example, through a phishing email that poses as official health advice.
“We know that fake websites have been set up purporting to provide information on COVID-19,” Finlay said. “So COVID-19 has provided a lot of opportunity, unfortunately, for malicious attackers and cybersecurity. I'm not surprised by IBM's findings.”
The survey found nearly half (44 per cent) of the breaches analyzed exposed customer personal data, such as names, emails, passwords, or even healthcare data. It found compromised user credentials (such as stolen passwords) were the most common method used as an entry point by attackers, representing 20 per cent of breaches studied.
Ransomware attacks are also growing increasingly common, said Finlay, pointing to high-profile incidents so far in 2021 like the Russian-linked cyberattacks on Colonial Pipeline and JBS Foods.
“When I look back at the last year, the most serious development that I see is around the increasingly serious ransomware attacks, in particular around critical infrastructure,” Finlay said. “Ransomware is exploding as a major international security problem. It is a multi-billion global industry.”
The IBM survey analyzed real-world data breaches experienced by 500 organizations worldwide (26 in Canada) between May 2020 and March 2021. It factored in costs to companies ranging from legal, regulatory and technical responses in the event of a cyberattack to loss of brand equity, customers, and employee productivity.
This report by The Canadian Press was first published July 28, 2021
CTVNews.ca Top Stories
How quietly promised law changes in the 2024 federal budget could impact your day-to-day life
The 2024 federal budget released last week includes numerous big spending promises that have garnered headlines. But, tucked into the 416-page document are also series of smaller items, such as promising to amend the law regarding infant formula and to force banks to label government rebates, that you may have missed.
Which foods have the most plastics? You may be surprised
'How much plastic will you have for dinner, sir? And you, ma'am?' While that may seem like a line from a satirical skit on Saturday Night Live, research is showing it's much too close to reality.
opinion I've been a criminal attorney for decades. Here's what I think about the case against Trump
Joey Jackson, a criminal defence attorney and a legal analyst for CNN, outlines what he thinks about the criminal case against Donald Trump in the 'hush money trial.'
$3.8M home in B.C.'s Okanagan has steel shell for extra wildfire protection
A home in B.C.'s Okanagan that features a weathering steel shell designed to provide some protection against wildfires has been listed for sale at $3.8 million.
Diver pinned under water by an alligator figured he had choice. Lose his arm or lose his life
An alligator attacked a diver on April 15 as he surfaced from his dive, nearly out of air. His tank emptied with the gator's jaws crushing the arm he put up in defence.
Psychologist becomes first person in Peru to die by euthanasia after fighting in court for years
A Peruvian psychologist who suffered from an incurable disease that weakened her muscles and had her confined to her bed for several years, died by euthanasia, her lawyer said Monday, becoming the first person in the country to obtain the right to die with medical assistance.
Mystery surrounds giant custom Canucks jerseys worn by Lions Gate Bridge statues
The giant stone statues guarding the Lions Gate Bridge have been dressed in custom Vancouver Canucks jerseys as the NHL playoffs get underway.
Celebrity designer sentenced to 18 months in prison for smuggling crocodile handbags
A leading fashion designer whose accessories were used by celebrities from Britney Spears to the cast of the 'Sex and the City' TV series was sentenced Monday to 18 months in prison after pleading guilty in Miami federal court on charges of smuggling crocodile handbags from her native Colombia.
Wildfire leads to evacuation order issued for northeast Alberta community
An evacuation order was issued on Monday afternoon for homes in the area of Cold Lake First Nation.