Cyber Voices

Seventy per cent of Canadians trust businesses more when they employ advanced security technologies such as biometrics and passkeys

As we mark Fraud Prevention Month in Canada, it is incumbent on all of us to recognize that fraud has emerged as one of the most significant threats to the Canadian economy. According to the Canadian Federation of Independent Business, half of all small businesses in the country were targets of fraud by criminals last year, and those that fell victim to fraud lost on average $7,800. While that may not seem like a large figure, it can be impactful to a small-business owner.

The losses extend far beyond monetary value and cash flow. For a local bakery or a small online retailer, a single breach can mean loss of customers, reputational risk and even closure.

We all need to take note of this challenge. Canadian small businesses are the lifeblood of our economy, representing 98 per cent of all businesses in the country. An attack on these businesses directly impacts the prosperity of millions of people across our country.

The unfortunate reality is these attacks are continuing to proliferate. AI-powered fraud schemes, such as deep fake and phishing, are getting far more sophisticated. In the fight against fraud, we must continue to invest in innovation to keep our economy safe.

The simple fact is small-business owners are focused on the success of their day-to-day operations. They understand the critical importance of cybersecurity solutions, and a growing number of Canadians expect them to employ the latest security measures. What these entrepreneurs need is support, so they can close the security gaps that are leaving them particularly vulnerable to digital fraud.

We must empower small-business owners to protect their businesses, as well as their customers, and thrive in today’s economy through innovation and collaboration. To help them succeed, we must ensure they have access to tools and support needed to safeguard their operations.

The good news is that we’ve taken some great first steps here in Canada. Ongoing partnerships are already providing small-business owners with the training and tools to assist them with embracing digital transformation safely. These collaborations highlight how public and private sectors can work together to foster resilience and enable growth.

Unfortunately, as we continue to see the rate of fraud activity increase, we can, and must, do more. For industry leaders, this is a moment to lead by example. We must continue to collaborate with governments, academia, financial institutions and technology providers to create a safer ecosystem for small businesses to thrive.

Policymakers must also play a role by supporting and incentivizing cybersecurity investments and ensuring regulatory frameworks keep pace with evolving threats. Fraud is not just a challenge to overcome; it is an opportunity to reimagine how we protect the backbone of our economy.

I encourage small-business owners to prioritize cybersecurity as an investment in their future. Adopting multi-factor authentication, regularly updating software and educating their employees about impersonation and phishing scams can significantly reduce risks.

Together, we can empower small-business owners to navigate the digital economy confidently and securely, ensuring their success contributes to Canada’s economic prosperity. This is an ongoing commitment to championing innovation that safeguards Canadian businesses and builds trust in the digital ecosystem. Let’s work together to continue building a future where small-business owners prosper in an increasingly digital world.

As the Vice President of Security Solutions at Mastercard in Canada, Amisha Parikh plays a leading role in strategy development to help drive payment innovation, security and resiliency. Mastercard Trust and Safety Centre.