CALGARY — Canadian organizations are paying more than ever to recover from cyberattacks, with the average cost of a data breach climbing to a record $7.11 million, according to a new IBM report that warns attacks on critical industries are becoming more frequent, more damaging and more expensive.The 2026 IBM Cost of a Data Breach Report found the average cost of a cyber breach in Canada has reached its highest level since the study began, as organizations grapple with larger attacks that take longer to detect and contain.The average number of compromised records increased 8% over the past year to 28,500, while the average time required to identify and contain a breach rose 6% to 205 days.Canada's energy sector recorded the highest average breach costs at $9.21 million per incident, followed closely by the technology sector at $9.02 million and industrial organizations at $8.89 million.IBM Canada Security Leader Chris Sicard said cybercriminals are increasingly targeting industries where operational disruptions can have widespread economic consequences..Federal data breach settlement hits $8.7M after hackers accessed thousands of tax accounts ."The shift we're seeing is significant. Attackers are increasingly targeting sectors where disruption creates real operational and economic consequences, while also looking for the weakest link in the supply chain," Sicard said.He warned the consequences often extend well beyond the organization that was hacked."When breaches affect energy, industrial and technology organizations, the impact can extend far beyond the organization itself. Every connected supplier, partner and third-party platform expands the attack surface."Supply-chain attacks were identified as the single largest contributor to rising breach costs in Canada, adding an average of nearly $368,000 to each incident. A shortage of cybersecurity professionals increased costs by roughly $314,500, while difficulties identifying the most serious threats added another $311,300 on average.The report said organizations are becoming increasingly vulnerable because they rely on outside suppliers, contractors, software providers and business partners, creating more opportunities for attackers to gain access.IBM's findings also suggest organizations can significantly reduce the financial impact of cyberattacks by adopting artificial intelligence and automated security tools.Organizations that extensively deployed AI across their security operations reported average breach costs of $5.5 million, compared with $8.91 million for organizations that had not adopted the technology — a difference of approximately $3.41 million per incident..Firearms data breach exposed 2.2 million Canadian gun owners, no full investigation launched.Organizations using AI also detected and contained attacks more quickly. Breaches were identified in an average of 124 days and contained within 57 days, compared with 154 days and 71 days respectively for organizations without AI-driven security systems."The organizations gaining the biggest security advantage are the ones using AI and automation extensively across their operations," Sicard said."They're finding threats sooner, responding faster and reducing the financial impact of breaches by millions of dollars."The report also found cybercriminals are beginning to use artificial intelligence themselves, with 28% of Canadian organizations reporting they had experienced an AI-generated cyberattack.IBM recommends organizations strengthen identity and access controls, improve oversight of third-party suppliers, expand the use of AI-driven security tools and regularly test incident response plans to reduce the time needed to respond to cyber incidents.The report was conducted by the Ponemon Institute and sponsored by IBM. Researchers analyzed data from breaches experienced by 602 organizations worldwide between March 2025 and February 2026, followed by a survey of 456 of those organizations in May 2026.
