In today’s fast-paced digital world, every startup is a digital business. Your hard work, innovative ideas, and customer trust are built on a foundation of technology. Yet, for too many Canadian entrepreneurs, cybersecurity remains an afterthought, a technical expense rather than the strategic advantage it truly is. At Startup Canada, we believe in empowering founders with the knowledge to build resilient businesses, and in collaboration with Mastercard, we’re here to help you understand why protecting your digital ecosystem is non-negotiable for success.*

Many small and medium-sized businesses (SMBs) mistakenly believe they’re too small to be noticed by cybercriminals. The truth? SMBs are prime targets because they often lack the robust defences of larger enterprises. Data from the Canadian Federation of Independent Business (CFIB) reveals a sobering reality: more than half of Canadian SMBs have already faced some form of cybercrime. This isn’t just about data; it’s about your entire operation.

Cybersecurity Threats Are Business Threats

Let’s be clear: cyber threats are far more than an inconvenience. A successful cyberattack can have devastating, real-world consequences for your business:

• Business Interruption: Imagine your operations grinding to a halt for days or weeks due to a cyberattack, which may obstruct access to your billing system, customer contacts, or halt production lines.
• Loss of Sensitive Data: Your customer records, financial data, intellectual property, or trade secrets can be accessed, copied, or permanently deleted by unauthorized individuals.
• Financial Consequences: Beyond potential ransom payments, the costs can escalate rapidly due to regulatory fines, legal fees, and lost revenue from downtime. According to a recent study*, the average ransom paid by Canadian businesses has increased by almost 150% in two years, amounting to more than CA$1.13 million.
• Reputational Damage: Consumer trust is fragile. Eighty-seven percent of consumers say they will take their business elsewhere if they don’t trust that a company is handling their data responsibly*. Bad news travels fast, impacting current and future sales.
• Legal Liabilities: Failing to comply with data protection laws like Canada’s PIPEDA can lead to significant fines, lawsuits, and regulatory action.

Can you afford to operate without protecting your digital assets? Ignoring cybersecurity isn’t just risky; it’s a direct threat to your bottom line and your future.

Why Cybersecurity Is Your Strategic Advantage

Forward-thinking entrepreneurs are shifting their perspective: cybersecurity isn’t merely a cost, but a powerful competitive advantage. Here’s why:

• Build Unshakeable Customer Trust: When your customers know you’re dedicated to protecting their sensitive information, they’re more likely to stay loyal and recommend your services.
• Ensure Operational Resilience: Robust security measures help you avoid the disruptive downtime and chaos that follow cyberattacks, keeping your business running smoothly.
• Achieve Regulatory Compliance: Staying ahead of privacy and security regulations (like PIPEDA) protects you from penalties, builds credibility, and signals professionalism.
• Unlock Better Partnerships: Many larger companies and government agencies now demand robust cybersecurity standards before engaging with SMBs. Your strong security posture can open doors to new opportunities.

Just as you wouldn’t leave your storefront unlocked at night, your digital doors demand the same vigilance.

Common Cybersecurity Myths That Hurt SMBs

Let’s debunk some dangerous misconceptions that often leave businesses vulnerable:

• “I’m too small to be targeted.” Cybercriminals use automated tools to scan for vulnerabilities across millions of businesses. If you’re online, you’re a potential target.
• “My data isn’t valuable.” Even basic information like email addresses, passwords, or employee data can be sold on the dark web or used as a stepping stone for larger attacks. Your IP and communications are also incredibly valuable.
• “Antivirus software makes me safe.” Antivirus is an essential first layer, but it’s just one piece of a comprehensive, multi-pronged approach.

Cybersecurity Building Blocks for Every Startup

If you’re new to this, don’t panic. Empowering your startup with strong cybersecurity begins with these foundational steps:

1. Strong Authentication: Implement complex, unique passwords for all accounts. Crucially, enable two-factor authentication (2FA) everywhere it’s available.
2. Regular Updates: Keep all your systems, software, and devices (including personal devices used for business) updated with the latest security patches.
3. Secure Backups: Create frequent, secure backups of all critical data. Store them offline or in a secure cloud location, and test your ability to restore them regularly.
4. Employee Training & Awareness: Your team is your strongest defence or your weakest link. Continuously educate employees on cybersecurity policies and best practices. Teach them to recognize phishing emails, identify suspicious activity, and understand safe USB usage. Foster a culture of sharing information about new phishing attempts to keep everyone informed.
5. Network Protection: Utilize firewalls to protect your network, and encrypt sensitive data wherever possible, both in transit and at rest.
6. Phishing Vigilance: Phishing attacks are a primary entry point for cybercriminals. Be wary of unsolicited emails, instant messages, or texts. Always check sender details for inconsistencies, misspellings, or signs of fakes. Never click on suspicious links or download attachments if you’re unsure of the sender’s legitimacy. If in doubt, delete the message and empty your trash.

How to Effectively Manage a Data Breach

Even with the best preventative measures, breaches can happen. Having a clear Incident Response Plan is paramount for Canadian entrepreneurs. Knowing what to protect (personal information, IP, etc.) and the consequences of failing to do so will help you develop a plan to respond, limit, and eradicate threats.

If you suspect or experience a cyberattack, follow these steps:

1. Identify: Quickly determine which systems, servers, or networks are affected to gauge the severity of the attack.
2. Contain: Immediately isolate compromised machines from your main network to prevent further spread. Disable affected accounts.
3. Eradicate: Delete infected/malicious files, prevent their execution, and scan disks with up-to-date security software.
4. Notify Stakeholders: Notification protocols depend on the type and severity of the breach. In some cases, organizations report incidents to entities such as local police, financial institutions, or credit bureaus, particularly where financial data is involved. Breaches that include Personally Identifiable Information (PII) can involve notification to the Office of the Privacy Commissioner of Canada.
5. Recover: Once traces of the attack are removed, restore your systems from secure backup data to resume business as usual. If you’re unable to perform these operations, seek professional help from cybersecurity specialists.

Investing Now Saves Money Later

Hesitating to invest in cybersecurity might seem like a cost-saving measure, but it’s a false economy. The average cost of a data breach for a small business can be quite expensive, while robust basic cybersecurity measures cost much less. Think of cybersecurity as essential insurance for your business. You hope you never need it, but when something goes wrong, you’ll be profoundly grateful you invested.

Cybersecurity Is Everyone’s Job

Digital security isn’t solely the IT team’s responsibility. It’s an ongoing commitment that requires every member of your team to understand their role. Cultivate a company culture where cybersecurity is a shared responsibility: reward safe behaviours, share regular updates, and ensure continuous education for all employees. Your business’s cybersecurity is only as strong as your weakest link.

Take the Next Step: Join a Community That’s Here to Help

Cybersecurity can feel overwhelming, but you don’t have to tackle it alone. Mastercard is committed to empowering Canadian businesses with the tools and knowledge they need to thrive securely.

Understanding that mentorship and support are at the heart of small business success, the Mastercard Small Business Community provides small business owners the opportunity to learn, grow and connect with Mastercard and its partners, plus gain access to events and resources to help manage and expand their business.”

Sign up today: https://www.mastercard.ca/en-ca/business/overview/business-resource-centre/small-business-community-signup.html

*Cybersecurity Assessment Report