Canadian cyberattacks surge 80% as cloud risks grow

CDW Canada has published new research showing cyberattacks on Canadian enterprise organisations rose nearly 80 per cent year on year, highlighting a widening gap between higher security spending and persistent weaknesses in basic controls.

The research, conducted by IDC Canada for CDW Canada, surveyed more than 700 IT security, risk and compliance professionals. It found that the average number of incidents per enterprise rose from 191 to 342 over the period covered, while 52 per cent of enterprise organisations reported a breach.

The findings suggest attackers are shifting away from broad, simple campaigns and toward larger organisations with more complex systems and greater potential financial returns. The growing use of AI is also helping attackers scale and refine their methods.

Infiltration-based incidents also increased, suggesting breaches are moving beyond surface-level disruption to deeper access within company systems. The report says that trend is particularly visible in enterprise environments, where broader digital estates can create more points of failure.

Cloud Risks

Cloud security emerged as a central issue in the study. Enterprise cloud infection rates rose to 53 per cent from 41 per cent a year earlier, the highest level recorded since the study began.

That increase comes as many organisations continue to assume their cloud environments are secure by default. The study argues this assumption is leaving large Canadian organisations exposed, especially where misconfigurations and identity management gaps remain unresolved.

Cloud-related disruption is also becoming more costly operationally. Average enterprise cloud downtime rose from 16 days to 20 days per incident, making cloud breaches among the most disruptive incident types recorded in the research.

These failures often stem less from shortcomings in the underlying technology than from the way systems are configured and maintained. In practice, weaknesses in internal processes and oversight can amplify the damage caused by a breach.

Spending Paradox

Security investment is rising at the same time. The study found spending reached a five-year high, with 20 per cent of IT budgets now allocated to security and 57 per cent of organisations saying funding is good or readily available.

Yet the report describes a "security maturity paradox", in which organisations appear more advanced because they are buying modern tools, while weaknesses in people, identity controls and supplier security remain. Those gaps can leave businesses vulnerable even as headline investment figures rise.

Many organisations also still lack consistent practices for managing internal risks linked to employees and contractors. That can turn relatively manageable events into broader business disruptions, particularly where response plans and governance are not aligned.

"The rapid evolution of cyberthreats and the clear pivot toward high-value enterprise environments signal a more calculated and strategic attacker mindset," said Ivo Wiens, Field Chief Technology Officer, Cybersecurity, at CDW Canada. "At this stage, bridging these gaps is imperative and organizations need partners with a proven understanding of the modern threat landscape."

AI Pressure

The study also highlights a second layer of pressure from AI inside organisations. While attackers are using AI to sharpen their campaigns, businesses are also introducing AI tools into their own operations, creating new security demands in the process.

More than half of respondents, 51 per cent, identified AI model monitoring, auditing and assurance tools as a priority. A further 45 per cent selected identity and access security for AI workloads, reflecting concern about misuse and unauthorised access.

Canadian organisations appear to be taking a cautious approach to deployment. The research found that 56 per cent require proven accuracy and lower false positive rates before deploying AI systems, while 51 per cent expect transparency in how AI models make decisions. Another 45 per cent said traceability and auditability of AI-driven actions are important for compliance and risk management.

The broader message from the data is that cybersecurity pressure is spreading beyond IT departments. When large organisations are hit, the effects can extend to employees, customers and communities that depend on their services, especially when incidents lead to prolonged downtime.

"Canadian organizations are investing more than ever in cybersecurity, but spending alone doesn't equal security," said Ben Boi-Doku, Chief Cybersecurity Strategist, at CDW Canada. "By setting clear expectations for AI deployment, Canadian organizations are taking an important step toward managing risk, strengthening business continuity and preserving trust in an increasingly complex threat environment."