Following on the heels of a Canadian Federation of Independent Business (CFIB) survey which found that artificial intelligence is making it increasingly difficult for business owners to detect fraud attempts, another survey, this time from the Insurance Bureau of Canada (IBC), is turning up similar results. In the IBC case, however, survey respondents were asked if they were insured against cyber-attacks. Only 18 per cent of those surveyed said they were.

The IBC report survey of small businesses – 317 business owners and decision makers from companies with fewer than 500 employees were surveyed in August 2024 – found that 65 per cent said artificial intelligence (AI) will make it harder to protect against cyber risks, as AI makes attacks easier to automate and harder to detect. The attacks, say Mahan Azimi, manager of catastrophic risk policy with the IBC, “pose a real threat to the integrity and security of any business.” Azimi adds: “There is a growing need for business owners to improve their cyber resilience.” 

Despite the emerging risk, they add that business owners’ preparation and investment in cyber resilience is on a downward trend. Only 45 per cent said they have implemented defenses against cyber-attacks; only 31 per cent said they increased their cybersecurity protocols in the past year.

“In 2023, 69 per cent of small to medium-sized business owners who responded to the survey said they are doing what they can to reduce their business’s cyber risks. In 2024, that number fell to only 61 per cent,” they write.

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