• By: Allen Brown

Why is online security a growing concern for Canadian businesses?

Thanks to the popularity of online platforms, shopping has never been as convenient as it is today. And for the 82% of shoppers who, according to Chain Store Age, consider convenience to be either extremely or very important when making purchase decisions, these platforms are very handy. Just imagine the possibility of researching and ordering an item from any place with a simple touch of a button on your smartphone.

But with all these comfort and convenience comes the challenge of ensuring secure interactions. And, of course, regions like Canada are not exempt. So, why is this matter a growing concern in this region? Well, if these are the kinds of questions you have, you will actually do well in continuing to read this write-up.

The growing importance of online safety

Unsurprisingly, businesses across different sectors in Canada are paying close attention to online security. In fact, in sectors like iGaming, sites like https://www.canadasportsbetting.ca/often consider it when ranking the top betting websites. By putting together platforms compliant with Canadian regulations, these sites ensure bettors can participate in secure environments.

According to a recent report by Statistique Canada, about 16% of Canadian businesses were affected by cyberattacks in 2023. Even though the study revealed that there had been a decline in the number of businesses affected by the incidents since 2019, cybercriminals have not stopped inventing new ways of harming internet users. Actually, the same study noted that the number of Canadian individuals experiencing attacks had increased from 2018’s 52% to 70% in 2023.

Perhaps you have noticed a trend where attackers are no longer just creating ransomware tools because they want to use them themselves – they are now developing them to rent to other criminals. Such developments imply that you can’t afford to turn a blind eye to your online safety

Financial and reputational consequences

Can you imagine spending more than $4.88 million to recover from an attack you’d have otherwise avoided? IBM recently conducted a survey, noting that businesses could spend this amount healing from a cyberattack – a figure that’s anticipated to continue increasing in the coming days.

So, what about if you own a small-scale business whose annual yield does not even exceed, say, $4 million? Encountering an attack that would cost you $4.88 million to get back to your feet is not something you want to dream about. This could even lead to bankruptcy and take you out of business, which you don’t want to happen.

And on top of financial losses, cyberattacks can hurt your brand reputation. By the way, are you actually aware that, according to Embryo, about three-quarters of customers will only transact with a brand if they perceive it as trustworthy? Not adopting infrastructures that depict your platform as secure can actually make you lose a significant share of this population.

As if that were not enough, Cybersecurity Dive notes that online attacks affect the trust of close to 58% of consumers. To make it even more serious, about 7 in 10 consumers might never do business again with a brand after security incidents. With all these statistics in mind, would you still want to ignore your online safety?

Remember, acquiring customers today is no joke. You might actually end up spending at least five times as much to get new ones compared to retaining them. Now that ensuring online safety gives you an opportunity to appeal to cybersecurity-conscious individuals, going in this direction can really help retain and acquire new audiences.

The shifting regulatory ecosystem

About three years ago, in 2022, the Digital Charter Implementation Act was introduced to the Canadian House of Commons. The bill’s purpose is to strengthen the country’s privacy laws and protect citizen’s personal information.

So, as a business operating within this environment, you don’t want to be ignorant of such shifts, which could lead to hefty penalties. Actually, some reports claim that you can spend up to 5% of your revenue or $25 million if you don’t comply with this act.

For those operating on a global scale, there are international regulations that you can’t ignore. A good example is the European Union’s General Data Protection Regulation (GDPR), which applies to any global business that handles the data of EU citizens.

Do you know that non-compliance to this standard can lead to fines of up to 4% of your annual revenue? This is definitely not something you’d want for your business. As these standards continue to change, you want to always ensure that your security standards are compliant. This explains why many Canadian businesses are paying keen attention to their online safety measures.

What is our final word?

As you can actually see, online safety is not something to ignore. Especially at a time when cyberattacks are on the rise, its importance can never be overstated. By the way, you may be surprised to discover that attacks occur every 39 seconds.

And now that these incidents can have dire consequences, companies – not just in Canada – are doing all they can to stay ahead of attackers. For instance, they may affect the confidence of up to 70% of customers who might never return, crippling your business. Plus, the government is also implementing strict measures to mitigate the consequences of cyberattacks. Staying ignorant of such moves can really affect your operations, as you may need to pay some hefty fines.