According to the "State of Cybersecurity in Canada 2025" report, the country's critical sectors face an escalating wave of cyber threats, with ransomware attacks becoming inevitable and a severe cybersecurity workforce shortage leaving the nation vulnerable.
Released by the Canadian Cybersecurity Network and the Security Architecture Podcast, the report explores the challenges and opportunities shaping Canada's cybersecurity landscape. It warns that cyber threats are escalating, particularly in key industries such as healthcare, energy, education, and retail.
The report highlighted a ransomware attack in the winter of 2024, crippling one of Canada's largest healthcare networks, delaying surgeries, disrupting patient care, and exposing sensitive data. This incident underscored cybercriminals' growing risk to national security and economic stability. Hackers exploit security gaps as organizations adopt advanced technologies, making cybersecurity a growing national concern.
The report found a rise in breaches, mainly due to human error and systemic vulnerabilities. Misconfigurations in Internet of Things (IoT) devices and cloud systems accounted for 82 percent of security incidents, reinforcing the need for more proactive cybersecurity measures. Cybersecurity expert Paul Da Silva stressed the inevitability of attacks, stating that ransomware is no longer a question of if but when. He urged Canadian businesses to adopt a layered defence strategy to reduce their exposure to cyber threats.
The report highlighted Canada's severe cybersecurity workforce shortage. Canada produces fewer than 4,000 graduates annually despite a demand for over 25,000 professionals. This gap presents a significant risk to both economic stability and public safety. Randy Purse, an expert in workforce development, warned that the cybersecurity skills gap threatens Canada's economy and security, emphasizing that mid-career transitions and regional training initiatives are necessary to close the gap.
Sector-specific challenges remain a significant concern. The healthcare industry faces growing ransomware threats that put patient safety at risk. The energy sector struggles with supply chain vulnerabilities, with 75 percent of companies identifying cyber risks as a top concern. The education sector, hampered by funding shortages and governance issues, remains vulnerable to attacks that disrupt academic operations. In the retail industry, data breaches now cost an average of $7.05 million per incident as digital transformation continues introducing new security risks.
The report urged immediate action to strengthen Canada's cybersecurity defences. Experts recommended real-time security measures such as Identity Threat Detection and Response (ITDR) solutions, which help mitigate risks in cloud and hybrid environments. Organizations must implement continuous monitoring systems to detect and neutralize threats instantly. Addressing the talent gap requires scaling up mid-career reskilling programs and expanding regional cybersecurity training to make education more accessible. According to the report, collaboration between the public and private sectors is essential, with frameworks similar to the US Joint Cyber Defense Collaborative (JCDC) proposed to align government resources with industry expertise. The report also noted that financial incentives for small and medium-sized businesses (SMBs) could encourage the adoption of Managed Detection and Response (MDR) services, enhancing their ability to detect and mitigate cyber threats.
Fostering a strong security culture is another key recommendation. The report emphasized the importance of investing in behaviour-focused training to reduce human errors, which remain a leading cause of breaches. It also highlighted the need for leadership buy-in to establish a cybersecurity-first mindset across industries. Additionally, organizations are encouraged to leverage emerging technologies, such as AI-powered threat detection, to strengthen their cybersecurity defences.