Costs of data breaches dropping globally but not in Canada: IBM study
The average cost of a breach between March 2024 and February 2025 was $6.4 million, down from $6.6 million a year earlier, showed research released Wednesday from technology giant IBM and the Ponemon Institute, a U.S.-based cybersecurity research centre.
While global costs are decreasing because of shorter breach life cycles, expenses related to these attacks have risen in Canada, IBM Canada's security delivery leader Daina Proctor said.
The average cost of a Canadian breach soared 10.4 per cent to $6.98 million in the latest year studied from $6.32 million the year before.
Canada's average is higher because detection and escalation costs, which cover forensic investigators, regulatory responses, legal counsel and crisis communications, have risen, Proctor said.
Detection costs now average $470,000 in Canada, while post-breach recovery costs hover around $270,000.
At the same time, Canada is facing rising costs because of 'slower adoption of AI-driven defences and governance gaps,' Proctor said in an email.
In the last year, cybersecurity issues have been reported at Nova Scotia Power, the College of New Caledonia in Prince George, B.C., and PowerSchool, the maker of education software used by many Canadian schools.
Breaches can be expensive because they can be difficult to detect and assessing and recovering from them can be tedious, time-consuming work requiring many professionals and sometimes, interruptions for customers and workers.
Most countries have seen fees associated with a breach drop because it's taking less time to investigate breaches.
Yet several countries including Canada bucked that trend.
IBM and Ponemon's research showed the cost of data breaches also rose in the U.S., India, the Association of Southeast Asian Nations and Benelux — the economic union of Belgium, the Netherlands and Luxembourg.
Average breach costs in the United States reached a record US$10.22 million, an increase of nine per cent from last year.
When it analyzed 600 organizations impacted by data breaches, it found the most expensive attacks hit the health care sector, followed by the financial, industrial and energy industries.
In many instances, hackers made use of shadow artificial intelligence — when workers use AI without employer approval or oversight.
'Shadow AI has become one of the biggest blind spots for organizations today,' Proctor said. 'Employees are adopting AI tools to boost their productivity, but without oversight, they are inadvertently creating vulnerabilities.'
Shadow AI systems often process sensitive data and interact with external systems companies have no control over.
'Once attackers exploit these gaps, the cascading effects can expose entire systems and supply chains to significant breaches,' Proctor said.
Twenty per cent of the organizations studied said they suffered a breach due to security incidents involving shadow AI.
Global organizations with high levels of shadow AI said use of this technology added $967,011 to the average breach price tag compared to those that had low levels of shadow AI or none.
Incidents involving shadow AI also resulted in more personal identifiable information and intellectual property being compromised.
To address the risks associated with shadow AI, Proctor said companies need to give workers more approved AI tools and conduct regular audits to find gaps in their offerings and employee compliance.
This report by The Canadian Press was first published July 30, 2025.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Toronto Star
29 minutes ago
- Toronto Star
Aura Announces Q2 2025 and H1 2025 Financial and Operational Results
ROAD TOWN, British Virgin Islands, Aug. 05, 2025 (GLOBE NEWSWIRE) — Aura Minerals Inc. (NASDAQ: AUGO) (TSX: ORA) (B3: AURA33) ('Aura' or the 'Company') announces that it has filed its audited consolidated financial statements and management discussion and analysis (together, 'Financial and Operational Results') for the period ended June 30, 2025. The full version of the Financial and Operational Results can be viewed on the Company's website at on SEDAR+ at or on SEC 'In Q2, we achieved another record-high Adjusted EBITDA of US$106 million, driven by higher production and gold price of US$3,185 / Oz, bringing our last twelve months (LTM) Adjusted EBITDA to US$344 million at an average gold price of US$2,812 / Oz. Additionally, Aura reached significant milestones, including the publication of the Preliminary Economic Assessment (PEA) for Era Dorada, the signing of a purchase agreement for MSG, and a successful IPO on Nasdaq. We also approved our quarterly dividend payment, delivering a 7.4% yield return to our shareholders over the LTM, inclusive of share buybacks. Looking ahead, we expect commercial production at Borborema, the completion of the MSG acquisition in Q3, and to meet our production and cost guidance for the year.' Commented Rodrigo Barbosa President and CEO of Aura.
Vancouver Sun
29 minutes ago
- Vancouver Sun
Carney vows $1.2 billion bailout for lumber sector hit by Trump tariffs
Prime Minister Mark Carney promised as much as $1.2 billion to shore up Canada's lumber industry, which has been hit hard by U.S. duties that are about to significantly increase. Carney said Tuesday that up to $700 million in loan guarantees will help forestry companies of all sizes maintain and restructure their operations. He also pledged $500 million in grants and contributions for product development and market diversification. 'Canada does not dump lumber into the United States, and we will continue to make the case that these current and proposed duties are unjustified,' Carney said in West Kelowna, B.C. Start your day with a roundup of B.C.-focused news and opinion. By signing up you consent to receive the above newsletter from Postmedia Network Inc. A welcome email is on its way. If you don't see it, please check your junk folder. The next issue of Sunrise will soon be in your inbox. Please try again Interested in more newsletters? Browse here. 'We are a vital supplier to our southern neighbour, representing around a quarter of the U.S. market and helping to keep down the costs of American homes.' The dispute between the U.S. and Canada over softwood lumber stretches back decades, with the U.S. periodically imposing duties to counteract what it claims are unfair Canadian government subsidies. The U.S. Commerce Department is expected on Friday to conclude hiking duties on Canadian softwood to about 35 per cent from a previous total of 14.4 per cent. That's a combination of anti-dumping and countervailing duties. U.S. President Donald Trump has escalated the fight even further, ordering an increase to U.S. lumber production and an investigation of the national security risk of lumber imports. The probe is under Section 232 of the Trade Expansion Act, which Trump has already used to place new tariffs on steel, aluminum and copper. Canada shipped $40.3 billion of forest products and building and packaging materials to the U.S. last year, its fifth-largest category of exports to its largest trading partner. Carney said his government would launch its promised homebuilding agency, called Build Canada Homes, in the fall, which will prioritize Canadian lumber, steel and aluminum in construction. It will also require companies contracting with the federal government to source domestic well, the government will draft new initiatives to diversify international markets for Canadian lumber, along with retraining programs for workers, he said. Canada has long denied the U.S. claim that it sets artificially low 'stumpage rates,' fees sawmills pay to provinces to harvest timber from government-owned forests. The World Trade Organization in 2020 largely backed Canada's argument that U.S. levies were unfair. But that stance may be softening. Last month, British Columbia Premier David Eby told Bloomberg News that some Canadian leaders are open to a quota on softwood lumber exports to the U.S. in order to resolve the dispute. The Canadian industry is already suffering due to U.S. duties, while production has grown in recent years in the U.S. South. The Trump administration's policies may accelerate those trends, but they also risk driving up housing prices, as the U.S. will likely struggle to replace the supply of Canadian lumber in the short term. Trump last week hiked tariffs on imports from Canada that don't comply with the North American free trade pact to 35 per cent, from 25 per cent. Carney said Tuesday that he will speak with U.S. President Donald Trump 'when it makes sense.''I haven't spoken to the president in recent days,' Carney said. When asked Thursday about the prospects for a trade deal with Canada, Trump said that 'he's called' — seemingly a reference to Carney. Carney said the average U.S. rate on Canadian goods remains one of the lowest, and over 85 per cent of trade between the countries is still tariff-free, because of existing exemptions to tariffs. CUSMA is scheduled for a mandatory review next year. While other countries have included multi-billion dollar investment pledges in their trade deals with the U.S., Carney suggested that Canadian investment in the U.S. likely will decrease without a deal. 'We have 40 million people. We are the second-largest investor in the United States in the world,' he said. 'Without an agreement, there will be less by definition.' While Trump has cited cross-border fentanyl trafficking to justify some of his tariffs, Carney said that drugs flowing from Canada to the U.S. amount a 'rounding error' compared to other sources. — Bloomberg, with additional reporting from The Canadian Press Our website is the place for the latest breaking news, exclusive scoops, longreads and provocative commentary. Please bookmark and sign up for our daily newsletter, Posted, here .
Edmonton Journal
29 minutes ago
- Edmonton Journal
Carney vows $1.2 billion bailout for lumber sector hit by Trump tariffs
Prime Minister Mark Carney promised as much as $1.2 billion to shore up Canada's lumber industry, which has been hit hard by U.S. duties that are about to significantly increase. Article content Carney said Tuesday that up to $700 million in loan guarantees will help forestry companies of all sizes maintain and restructure their operations. He also pledged $500 million in grants and contributions for product development and market diversification. Article content Article content 'Canada does not dump lumber into the United States, and we will continue to make the case that these current and proposed duties are unjustified,' Carney said in West Kelowna, B.C. Article content Article content 'We are a vital supplier to our southern neighbour, representing around a quarter of the U.S. market and helping to keep down the costs of American homes.' Article content The dispute between the U.S. and Canada over softwood lumber stretches back decades, with the U.S. periodically imposing duties to counteract what it claims are unfair Canadian government subsidies. Article content The U.S. Commerce Department is expected on Friday to conclude hiking duties on Canadian softwood to about 35 per cent from a previous total of 14.4 per cent. That's a combination of anti-dumping and countervailing duties. Article content U.S. President Donald Trump has escalated the fight even further, ordering an increase to U.S. lumber production and an investigation of the national security risk of lumber imports. The probe is under Section 232 of the Trade Expansion Act, which Trump has already used to place new tariffs on steel, aluminum and copper. Article content Article content Canada shipped $40.3 billion of forest products and building and packaging materials to the U.S. last year, its fifth-largest category of exports to its largest trading partner. Article content Article content Carney said his government would launch its promised homebuilding agency, called Build Canada Homes, in the fall, which will prioritize Canadian lumber, steel and aluminum in construction. Article content It will also require companies contracting with the federal government to source domestic well, the government will draft new initiatives to diversify international markets for Canadian lumber, along with retraining programs for workers, he said. Article content Canada has long denied the U.S. claim that it sets artificially low 'stumpage rates,' fees sawmills pay to provinces to harvest timber from government-owned forests.
