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Top Fraud Threats Facing Canadian Small Businesses in 2025

From ransomware to deepfake CEO scams—here’s how fraudsters are evolving and what you can do to stay one step ahead.

March 27, 2025

Fraud has levelled up.

Today’s scammers use AI, impersonation, and social engineering to go after small businesses that they know may lack dedicated security teams. As a Canadian small business owner, you’re not just running your operations—you’re guarding them, too.

As part of Fraud Prevention Month, we’re breaking down the top fraud threats facing Canadian small businesses in 2025—and the simple, high-impact actions you can take to protect your people, your money, and your reputation.

1. Ransomware: Lock, Pay, or Lose

🔒 What is it?
Ransomware is malicious software that locks your files until a ransom is paid—halting operations and often costing more than money.

📊 Why it matters in 2025:

  • 13% of Canadian businesses were hit with ransomware last year (StatsCan).

  • Average recovery cost: $2.3M CAD (Sophos).

✅ What you can do:

  • Back up everything. Use automated backup tools like Google Takeout or Acronis, and keep at least one copy offline.

  • Test your backups monthly to make sure they work.

  • Keep software up to date—patching closes vulnerabilities.

  • Use endpoint protection (like Bitdefender or Microsoft Defender) to catch ransomware early.

💡 Pro tip: If your entire business runs on one laptop, protect it like your life depends on it—because your business might.

2. Phishing & Social Engineering: The Human Hack

📩 What is it?
Fake emails or messages that trick your staff into clicking malicious links or handing over passwords.

📊 Why it matters in 2025:

  • Phishing is up 58% in the last year, thanks to AI-generated messages.

  • 67% of employees admit to doing something risky that could compromise data (Proofpoint).

✅ What you can do:

  • Train your team to spot scams—urgency, typos, weird links = 🚩.

  • Try a free phishing simulator, like Google’s Phishing Quiz.

  • Use email filters (Gmail/Outlook have built-in options), and turn off macros in attachments.

  • Use security keys like YubiKeys for logins—they stop phishing in its tracks.

  • Adopt a password manager to avoid reused or weak passwords.

3. Business Email Compromise (BEC): The Executive Impersonator

👤 What is it?
Hackers pretend to be your CEO, CFO, or vendor, emailing your staff to request “urgent” payments or sensitive data.

📊 Why it matters in 2025:

  • Nearly 50% of Canadian small business owners were targeted last year (CFIB, 2025).

  • BEC is quiet, convincing—and costs businesses millions.

✅ What you can do:

  • Always verify unexpected payment or data requests via phone or secure chat.

  • Check your domain’s email security with MxToolbox.

  • Set up SPF, DKIM, and DMARC to block spoofed emails.

  • Add external sender alerts so your team can spot emails pretending to be internal.

  • Avoid listing executives' full names and emails publicly on your website.

4. Deepfakes & AI Impersonation: The CEO That Isn’t Real

🎙️ What is it?
Scammers use AI to create fake voice calls or videos impersonating executives and staff.

📊 Why it matters in 2025:

  • Deepfake scams are getting cheaper and more believable.

  • In one case, a deepfake CEO call led to a $35 million wire fraud.

✅ What you can do:

  • Create a no-verbal-approvals rule—never send money based on a phone call alone.

  • For urgent requests, call back using a known number, not the one that contacted you.

  • Avoid posting executive speeches or voice recordings online if you don’t have to.

  • Teach your team to follow the process, not the personality.

5. Insider Risk & Honest Mistakes

🧍‍♀️ What is it?
Most breaches don’t come from hackers—they come from employees making simple mistakes, like clicking a bad link, reusing passwords, or mishandling sensitive info.

📊 Why it matters in 2025:

  • Human error remains the #1 cause of breaches in small businesses (Cyber Centre of Canada).

✅ What you can do:

  • Follow the “least privilege” rule—give staff access only to what they need to do their job.

  • Conduct quarterly access reviews and remove old accounts.

  • Require Multi-Factor Authentication (MFA) for all logins—ideally using an app or security key.

  • Turn on audit logs for systems and services essential to business operations. Monitor for any unusual access patterns.

  • Create and maintain an up-to-date acceptable use policy, and review security training on a quarterly basis.

Final Thoughts: Build a Fraud-Resistant Business

You don’t need a massive IT budget to protect your business—you just need a few smart habits.

✅ Back up your systems.
✅ Train your team to pause and verify.
✅ Strengthen email security.
✅ Make MFA the default.
✅ Create a quick checklist for handling requests that involve money or sensitive data.

Small businesses are resilient. When you combine smart processes with the right tools, you become a much harder target for fraudsters.

🔐 Helpful Resources for Small Biz Owners:

📢 Next Week in The Click Code:
What to do if your business is targeted by a cyber attack—including who to call, how to respond, and how to recover.

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