In 2025, cybersecurity for small business Canada is more important than ever. Cybercriminals are targeting all sizes of organizations, and many owners still underestimate the risk. A recent BDC survey found that 73% of small Canadian businesses have experienced a cybersecurity incident – from phishing attempts to denial-of-service attacks (bdc.ca).
High-profile breaches have hit Canada’s economy: for example, London Drugs (a Canadian pharmacy chain) was forced to shut down all 78 stores in Western Canada in April 2024 after detecting a ransomware attack (bitdefender.com). Even small municipalities felt the impact – the Town of Orangeville, ON, discovered on Feb 27, 2025 that a cyber-attack had crippled its library and theater services, forcing IT staff to take systems offline and bring in external security experts (citizen.on.ca). These cases show that no one is too small to be targeted.
As we head into 2025, the threat landscape is evolving with new AI-driven scams and more aggressive attackers. This guide (from Raxxos Technology Inc., a managed IT services provider in Surrey, BC) covers recent Canadian attacks, top cyber threats this year, practical DIY cybersecurity steps (like MFA, strong passwords, updates and backups), and how/when to bring in a managed IT provider.
Recent Cyberattacks in Canada
Canadian businesses and public agencies have seen a string of cyber incidents in the past year. These real-world examples underline that any organization can be vulnerable:
- London Drugs (April 2024) – The BC-based pharmacy chain discovered on April 28, 2024 that it was the victim of a cyberattack (bitdefender.com). All 78 of its stores across British Columbia, Alberta, Saskatchewan and Manitoba closed “until further notice” to contain the breach, which turned out to be a ransomware incident. London Drugs immediately hired cybersecurity experts, sealed off affected networks, and later assured customers that there was “no reason to believe” patient data was stolen. This week-long shutdown left customers without prescriptions and illustrated how ransomware can disrupt essential services.
- Ganong (March 2025) – In March 2025, Ganong Bros. (a chocolate candy maker in St. Stephen, NB) announced that it had suffered an “IT security incident” in late February (country94.ca). The attack (later identified as ransomware) was discovered on Feb. 22, 2025. Ganong immediately implemented countermeasures, engaged third-party cyber experts and legal counsel, and began a forensic investigation. Although the company did not say whether a ransom was paid, it did say operations were restored to normal soon after, and it would notify anyone if personal data was compromised.
- Orangeville, ON (Feb 2025) – The Town of Orangeville (pop. ~30,000) was struck by a cyber-attack on Feb. 27, 2025 that affected municipal systems including the public library and Theatre Orangeville (citizen.on.ca). Town officials “took immediate actions to safeguard information” upon detecting the breach, and have worked with cybersecurity experts to investigate and add extra safeguards. As of early March, it was still unclear if personal data was stolen. The incident forced Orangeville to suspend some services while it rebuilt its network and security measures.
- Fort St. John, BC (Feb 2025) – On Feb. 25, 2025, the City of Fort St. John learned that it was under a “cyber incident” that knocked out email, phone lines and internet access across City Hall (brokentypewriter.ca). The city “immediately severed [its] connections to limit unauthorized activity” , but the outage meant residents could not pay bills in person or use online services for days. City officials worked with cyber specialists to restore critical services, highlighting how even smaller municipal governments need robust incident response plans.
- Pharmascience (June 2024) – In June 2024 the Quebec-based generic drugmaker Pharmascience disclosed that it had discovered an intrusion in its IT systems on June 1, 2024 (lapresse.ca). The company did not fully detail the attack, but confirmed its systems were compromised. La Presse reported that the incident “recalls the fragility of the country’s drug supply chain”. This shows that critical industries (even pharma) are being targeted by ransomware and other cyber threats.
These incidents underscore the range of victims – from pharmacies and manufacturers to local governments and unions – in the past year.
They show that cybercrime is no longer limited to tech giants; even modest operations can face very costly downtime. In each case above, impacted organizations had to call in outside help (forensic investigators, security consultants, or police) to recover.
“Hackers target small businesses too,” notes a recent BDC report. For example, 73% of small businesses surveyed had already experienced a cyber incident (bdc.ca) – yet many still assume “it won’t happen to me.” Attacks are on the rise with new tactics (AI-enhanced scams, supply chain intrusions, etc.), so awareness is critical in 2025.
Common Cyber Threats (2025)
Canadian small businesses face many of the same threats as larger firms, but often with fewer resources to defend against them. The most common cyber threats today include:
- Phishing & Social Engineering: Phishing (fraudulent emails or messages) remains one of the top entry points for attacks. Victims click a malicious link or attachment, unknowingly installing malware or handing over passwords. The Canadian Cyber Centre warns that “phishing is one of the most reported types of fraud in Canada”, and even sophisticated “spear phishing” (targeted emails to executives) leads to major losses (cyber.gc.ca). New tools make phishing easier: criminals can buy Phishing-as-a-Service kits or use AI chatbots to generate convincing emails. For example, fake invoices or shipping notices often trick employees into entering credentials into fake websites. Beware of unexpected attachments, urgent payment requests, or offers that seem too good to be true. Training your team on the “7 signs of phishing” (suspicious sender, poor spelling, odd URLs, etc.) and encouraging them to verify unusual requests can help stop these scams in their tracks.
- Ransomware: Ransomware remains the most disruptive cyber threat for organizations. It involves malware that encrypts your files (or locks systems) and demands payment for the decryption key. The Cyber Centre reports that “ransomware is one of the most disruptive forms of cybercrime facing Canada” (cyber.gc.ca) and that attacks “increased in scope, frequency, and complexity” since 2020. In practice, a single click or unpatched vulnerability can let attackers lock up critical data overnight. Businesses end up paying ransoms or spending huge amounts to restore backups and rebuild systems. The London Drugs and Ganong cases above were ransomware incidents. Without good backups, a single attack can shut you down for days or weeks. To mitigate ransomware, maintain offline backups of all data (see below) and apply patches promptly; this way you can restore systems without paying extortionists (getcybersafe.gc.ca).
- AI-Driven Deepfakes and Vishing: Artificial intelligence has given criminals powerful new tools. Voice and video cloning can create “deepfakes” that impersonate real people. In a recent Hong Kong case, fraudsters engineered a video conference with an AI-generated CFO and coworkers, convincing an employee that his real finance team was on the call (globalnews.ca). The victim made 15 wire transfers (totaling HK$200 million, about $35M CAD) before realizing the voices were fake. The U.S. Federal Trade Commission now warns that “someone who sounds just like your friend or family member” may actually be a scammer using AI voice-cloning (npr.org). In short, criminals can mimic CEOs, vendors or even a boss’s voice to request fund transfers or confidential info. The lesson: always verify unusual payment requests through a second channel. For example, confirm any large wire transfer by calling the requester at a known number, or use a pre-agreed secret passphrase on calls. As FTC advises, if you feel even slight doubt (or hear a familiar voice asking for money), “hang up and call the person directly to verify their story” (npr.org).
- Weak Passwords & Identity Attacks: Password reuse and easy guesses remain a problem. Even without phishing, attackers use credential stuffing (trying stolen passwords on many sites) and brute-force attacks to compromise accounts. For small businesses, a single leaked password can unlock email, bank logins or cloud storage. Canadian guidance stresses using unique passwords for every account, stored in a password manager , and enabling multi-factor authentication (MFA) wherever possible. This way, even if one password is phished, the attacker still cannot log in without the second factor (text code, app, or security key).
- Software & Hardware Vulnerabilities: Unpatched software (like old Windows, Office, or network gear) is a free entry for malware. Cyber-attackers continually exploit known bugs in operating systems or VPNs. If you don’t apply security patches, “cyber criminals can use the vulnerabilities to compromise your device” (getcybersafe.gc.ca). Similarly, Internet-of-Things (IoT) devices (cameras, printers, smart thermostats) often have weak or default passwords. Insecure IoT gadgets can provide backdoors to your network. The Get Cyber Safe guide advises checking a device’s security features and privacy (for example, changing default passcodes) before installing anything in the office.
- Business Email Compromise (BEC): This is a form of social engineering where scammers hack or spoof a CEO’s email to authorize bogus invoices. Even without AI, fraudsters have long used email spoofing to trick finance staff. Combined with the rise of remote work and cloud email, BEC is a top threat for small businesses. Always verify any email asking for funds or sensitive changes, and don’t rely solely on the appearance of the email header (it can be faked).
The table below summarizes these threats, their impacts, and key DIY protections:
| Threat | Description / Example | Impact (if successful) | Mitigation (DIY safeguards) |
|---|---|---|---|
| Phishing / Social Engineering | Deceptive emails or texts (often mimicking banks, suppliers, or colleagues) with malicious links or attachments. | Credential theft, malware installation, unauthorized access to systems. | Train staff on spotting phishing. Use email filtering, verify unexpected links, and report suspicious messages. |
| Ransomware | Malware (often delivered via email or exploit kit) that encrypts data, demanding a ransom payment (usually cryptocurrency) to decrypt. | Encrypted data, halted operations, potential data loss. High downtime costs. | Keep air-gapped backups of all data (getcybersafe.gc.ca). Apply security patches promptly. Use robust antivirus/endpoint protection. Consider segmentation (limit malware spread). |
| AI Deepfakes / Vishing | Audio/video scams using AI to impersonate real people (CEO, vendor, family member). Eg. fake CFO on Zoom call. | Fraudulent wire transfers or data leakage caused by trusting a fake call/email. | Always verify payment requests out-of-band (e.g. call known number). Use secret code phrases for executive approvals. Limit info shared publicly (which could be used to train deepfakes). |
| Password Attacks | Use of stolen credentials or brute-force on weak passwords. Credential stuffing. | Account takeover (email, financial, admin accounts) leading to data theft or further breaches. | Use unique complex passwords and change defaults. Enable MFA on all accounts. Employ a password manager to handle many credentials. |
| Unpatched Software / IoT | Exploits of known security holes in OS, apps, routers, smart devices. Malicious actors scan for unpatched flaws. | Unauthorized system access, data theft, network takeover. | Enable automatic updates on all devices. Regularly patch your OS, applications and firmware. Change default credentials on all IoT gadgets. Isolate IoT devices on separate network segments if possible. |
| Business Email Compromise (BEC) | Attackers spoof or hack an executive’s email to approve fraudulent payments. | Large financial losses. Loss of client trust if secrets leaked. | Verify ANY unusual invoice or payment request by a second channel. Keep good email security (MFA, spam filters). |
By understanding these evolving cyber threats (2025), Canadian small businesses can prioritize defenses and spot danger early. The key takeaway: attackers exploit human and technical weak spots. Strengthening processes (like verifying requests) is as vital as technical controls.
Practical DIY Cybersecurity Tips
Small businesses can implement many protections now without spending a fortune. These DIY cybersecurity steps will greatly reduce risk:
- Enable Multi-Factor Authentication (MFA) on every account that supports it. MFA requires a second factor (like an app code, SMS code or hardware key) beyond a password. As the Cyber Centre notes, “even if a criminal gets hold of a password, they will not be able to access the account without the additional factor” (getcybersafe.gc.ca). Protect critical logins – email, online banking, cloud services – with MFA.
- Use a Password Manager and Strong, Unique Passwords. Never reuse passwords across accounts. Good password managers (e.g. 1Password, Bitwarden) generate and store complex passwords so you don’t have to remember them all. This way, a breach on one site won’t break into others. For example, if someone phishes your Amazon password, a unique password prevents them from also logging into your email.
- Regularly Update Software and Enable Automatic Patches. Keep all PCs, servers, and even smartphones updated with the latest security patches. The Get Cyber Safe guide warns that out-of-date software “can have security vulnerabilities” that give attackers a backdoor. Where possible, turn on automatic updates so patching isn’t forgotten. Also update or replace any unsupported (end-of-life) software and hardware.
- Maintain Offline Backups of Your Data. Have full backups of all important files, and store at least one backup offline or offsite (not connected to your network). In a ransomware scenario, a clean backup means you can restore your business operations without paying a ransom. Ideally, automate daily backups and periodically test them. For example, use both cloud backup (like Azure/Google with versioning) and an external drive stored in a safe.
- Keep Anti-Virus / Anti-Malware Software Active. Make sure every computer and server has reputable anti-virus or endpoint protection installed and kept up-to-date. While not bulletproof, these tools can catch known malware. Also enable firewalls on devices and network routers to block suspicious traffic.
- Train Employees and Enforce Security Policies. People are often the weakest link. Conduct a quick training session or share a checklist so employees know to “not open suspicious attachments” and to recognize phishing signs. Establish a simple internet/email usage policy: for instance, employees should only download trusted software and double-check any unusual payment request (e.g. by phoning the sender). Encourage staff to report any odd emails or problems immediately.
- Secure Your Network. Change default credentials on your router, and consider segmenting your network (e.g. separate guest Wi-Fi). Use WPA3 or WPA2 Wi-Fi encryption. Disable remote administration on devices if not needed.
- Limit Administrator Privileges. Operate daily work accounts with standard user rights, not administrator/root accounts. Only use admin accounts for system changes. This prevents easy install of malware if a normal user account is compromised.
- Monitor and Verify Requests. As mentioned, always independently verify requests for money or sensitive actions. For any unusual wire transfer or data change, call the person making the request. Use pre-agreed secret phrases on calls between executives and finance – a simple step our team at Raxxos strongly recommends. In one real case, attackers used an AI-cloned voice of a CEO to fool a CFO into wiring funds. The scheme was only thwarted because the CFO insisted on the secret phrase that the attacker did not know. Practices like these cut off social-engineering attacks at the pass.
These steps are often called “DIY cybersecurity”: measures you can do yourself in-house. By implementing them, you raise your baseline security dramatically. For example, as the Get Cyber Safe guide advises, use complex passwords and MFA, enable automatic updates, and be cautious with downloads (getcybersafe.gc.ca). Each of these actions addresses one of the major vulnerabilities small businesses have.
DIY vs. Managed IT Services
Some small business owners can handle basic security themselves. A DIY cybersecurity approach means the owner or in-house staff buys security software, applies updates, and follows the tips above. This can work for very simple setups, but it has limits: you may lack 24/7 monitoring, expertise on complex threats, or time to keep up with the latest attacks.
For many SMBs, hiring a Managed IT Services provider is worth considering. An MSP brings in specialized knowledge and resources at a predictable cost. Here’s how DIY security compares to professional management:
| Aspect | DIY (In-House) Cybersecurity | Managed IT Services (Outsourced) |
|---|---|---|
| Expertise and Tools | Limited to owner’s/staff’s knowledge. May miss new threats or rely on basic, consumer-grade tools. | MSPs have security experts and enterprise-grade tools (monitoring, intrusion detection, managed firewalls) to catch and analyze threats. |
| System Monitoring | Checks done only during business hours; issues may go unnoticed until major failure. | 24/7 monitoring of networks and servers. Alerts trigger immediate response even outside office hours. |
| Updates and Patching | Done manually or infrequently (often delayed). Vulnerabilities linger. | MSP automates and enforces updates/patches on all systems regularly (including off-hours). |
| Backups and Recovery | Owner must remember to back up; risk of forgotten or incomplete backups. | Automatic backup management and periodic recovery drills. Faster restoration from backups after incidents. |
| Incident Response | External help only when disaster strikes (often costly emergency support). No formal plan or practice. | Managed providers help develop an incident response plan and can mobilize quickly when an attack occurs (often preventing or limiting damage). |
| Cost Structure | Large upfront costs (hardware/software). Variable ongoing costs (emergency fixes, license renewals). Hard to budget. | Predictable monthly fees. No surprise expenses for basic maintenance or security monitoring. |
| Time and Focus | Owners spend time on IT issues (“tech support”), taking focus away from core business. | Frees you to focus on business, while the MSP handles day-to-day IT/security. You just approve major decisions. |
| Local Support / Compliance | Varies. May have no local IT partner or limited knowledge of local regulations. | Many MSPs (like Surrey-based Raxxos) provide local, on-site support as needed and can advise on Canadian data/privacy regulations. |
When to consider hiring an MSP:
- You lack internal IT staff or expertise.
- You need guaranteed uptime and fast response (e.g. ecommerce site, billing systems).
- You want predictable budgeting (pay one flat monthly fee).
- You must comply with regulations or handle sensitive data (healthcare, finance, etc.).
- You prefer to focus on your business while leaving tech details to pros.
For example, Raxxos Technology Inc. is a Surrey, BC managed IT firm that helps local Canadian businesses. We provide 24/7 helpdesk support, proactive security monitoring, network management, cloud services and more (raxxos.com). Our people-first approach (we’re one of Surrey’s top-rated IT support teams) emphasizes clear communication and fast response.
An MSP like Raxxos can set up and manage firewalls, patch servers overnight, train employees on security, and restore backups after an attack – tasks that are hard to do reliably in-house. When Raxxos manages your IT, you benefit from a whole team of experts and tools that many small businesses could not afford on their own.
DIY or MSP? It’s not all-or-nothing. Many small businesses blend both: they follow the basic DIY tips above, and also partner with an MSP for advanced services (security audits, managed antivirus, incident response, etc.). If you start feeling overwhelmed by technology or security demands, it’s a good signal to reach out for professional help.
Raxxos Insight: Voice-Cloning Scams
One emerging threat we’ve seen up-close involves AI voice cloning. A case in point: fraudsters used AI to mimic a CEO’s voice on the phone, instructing a company CFO to send a large payment. The call sounded nearly identical to the real CEO’s voice. In that incident (fortunately caught in time), the CFO paused and asked for a secret code word that only the real CEO would know.
The scammer didn’t know the code, so no money was sent. This example underlines why we always advise executives to use out-of-band verification or “secret phrases” for money transfers. It’s now common advice: even the U.S. FTC warns that a call sounding like a loved one could actually be a cloned voice and urges people to hang up and verify the story (npr.org). For small businesses, setting simple rules (e.g. “I will never authorize a transfer by phone without code X”) can thwart high-tech scams.
Stay Vigilant and Build Resilience
Cyber threats will keep evolving, but taking action now will greatly strengthen your defenses. Remember: investing in cybersecurity is not just about avoiding losses, it’s about protecting your reputation and customer trust. CIRA reports that businesses suffering breaches face lost customers and revenue as a direct fallout. In fact, 50% of customers say they would stop doing business with a breached company (strongdm.com).
Start by implementing the easy wins above (MFA, updates, backups, training). Review your progress annually or whenever major changes happen (new staff, new software). Keep an eye on reputable sources for small-business security guidance – for example, the Canadian Centre for Cyber Security and GetCyberSafe.ca offer free checklists and updates.
If threats seem daunting, remember that help is available. A managed IT provider can act as your security partner. In Surrey and across the Lower Mainland, Raxxos has helped many local small businesses build cyber hygiene and recover from incidents. Our goal is to make technology understandable and secure so you can run your business with confidence.
In summary: Canadian small businesses cannot afford to ignore cyber threats in 2025. By learning from recent incidents, understanding common threats, and applying basic protections (MFA, updates, backups) along with expert support when needed, you can dramatically reduce your risk. Stay proactive, train your team, and don’t hesitate to seek professional help if a DIY approach is not enough. Cybersecurity is a journey, and taking the first steps now will safeguard your business well into the future.
Sources: Statistics and guidance are drawn from authoritative Canadian and global cybersecurity publications. Wherever possible we’ve linked to original news reports and official guides above to ensure you have the latest, credible information.
