High-impact cyber incidents have tripled
Canada's banks are facing an alarming spike in serious cyberattacks, with incidents that have significant consequences nearly tripling last year. This news comes at a time when a crucial piece of cybersecurity legislation, Bill C-26, is stuck in parliamentary proceedings without any progress.
Tolga Yalkin from the Office of the Superintendent of Financial Institutions (OSFI) shared his concerns with a parliamentary committee, noting the sharp increase in "priority one" cyber incidents from about 10 in 2022 to 28 in 2023. He emphasized the importance of banks promptly reporting these incidents to OSFI, highlighting the growing cybersecurity threats facing the financial sector.
"Priority ones are basically high-impact incidents that cause disruption of service or leakage of data. We're eagerly watching to see whether or not the trajectory continues to grow. This is an area of risk for financial institutions,” Yalkin said.
Read next: The growing threat of cybercrime in the mortgage industry
Proposed in 2022, Bill C-26 aims to tighten cybersecurity across vital sectors like finance, telecommunications, energy, and transportation. It mandates these industries to improve their defences against cyberattacks or face stiff penalties. Furthermore, the bill requires the establishment of cybersecurity programs capable of identifying and addressing significant incidents.
Despite being sent to a committee in March 2023, discussions on the bill only began recently. The legislation would also allow the government to dictate how private companies respond to cyber threats, but it would keep such directives confidential.
Privacy Commissioner Philippe Dufresne also expressed support for the bill's intent alongside Yalkin but stressed the need for amendments to protect the privacy rights of Canadians: "We must ensure that efforts to secure these systems and networks also protect and respect Canadians' fundamental right to privacy. This is not a zero-sum game."
Make sure to get all the latest news to your inbox on Canada’s mortgage and housing markets by signing up for our free daily newsletter here.
