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Insurance Without a Safety Net? Canadian Firms Face Premium Hikes Amid Cyber Liability Crisis

Leila Park

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A leaked Treasury Board of Canada Secretariat memo references cybersecurity insurance as a "long-term consideration" under federal risk modeling, sparking debate over government preparedness and private sector liability.

Toronto, ON —

July 4, 2025 — As ransomware incidents and data breaches continue to spike across Canada, many mid-sized firms are now finding themselves priced out of the very protection they need most: cyber insurance.

According to a new report from the  Maple Risk Institute, premiums for cyber liability coverage in Canada have risen by an average of 41% year-over-year, with some sectors — including legal services, logistics, and private healthcare — seeing even steeper increases or flat-out denials.

“Insurers are spooked,” said Arjun Patel, a senior risk analyst at Maple Risk. “Claims are skyrocketing, and the underwriting models weren’t built for this volume or complexity of cyber incidents.”

One major driver, Patel says, is a wave of quiet ransomware settlements, particularly after last year’s high-profile breach at Regal Processing Group, a national payroll processor that reportedly paid a seven-figure ransom to avoid a class-action lawsuit from affected clients.

“The insurers paid out quietly, but now they’re passing those losses straight down the chain,” he added.

A Shrinking Pool

Of the 12 major insurers that offered cyber liability coverage in Canada in 2022, only seven are actively writing new policies today, and many have added stringent preconditions, including mandatory penetration testing and proof of MFA enforcement across all endpoints.

“For a lot of companies, especially outside urban tech hubs, these conditions are unrealistic,” said Tara Muir, COO of logistics firm NorthTrak Freight. “We’re being told to upgrade our security stack or be denied coverage — but we can’t afford the upgrades without the coverage.”

A Risk Spiral in Progress

Experts warn that without accessible insurance, smaller firms may choose to underreport or hide breaches, leading to downstream damage in interconnected supply chains and customer networks.

“The cyber risk spiral is real,” said Patel. “Less coverage means more exposure, which means more cautious insurers, which means even less access.”

Government regulators have yet to propose a cyber insurance backstop or subsidy, though internal Treasury Board memos — leaked earlier this month — reportedly cite it as a “long-term consideration” under national risk modeling.

Following the risk behind the ROI. — Leila Park

Business

AI-Generated “Operational Drift” Attacks Are Quietly Undermining SMB Decision-Making

Leila Park

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An illustration depicting the growing convergence between human identity and artificial intelligence, as advanced technologies reshape both innovation and cyber risk.

A newly observed cyber technique is raising concern among analysts after several small and medium-sized businesses (SMBs) reported cascading operational errors without any single system breach, malware infection, or obvious scam trigger.

The pattern, now being informally described as an AI-induced operational drift” attack, does not rely on traditional phishing, voice impersonation, or direct financial fraud. Instead, it exploits how SMBs coordinate work across email, messaging platforms, shared documents, and scheduling tools.

In reported cases, attackers used AI-generated messages to subtly alter internal workflows over several days. Employees received routine-looking updates that appeared to come from trusted colleagues: minor deadline changes, revised procedures, updated vendor instructions, or altered approval paths.

Individually, none of the messages appeared malicious. Collectively, they introduced confusion.

According to analysts, the technique begins with AI systems trained on publicly available company information, job postings, social media content, and leaked communication styles common within specific industries. Rather than asking for money or access, the messages focus on process.

Over time, teams begin working from different assumptions. Approvals slow, tasks are duplicated, and accountability becomes unclear.

The goal isn’t to steal immediately,” one analyst said. “It’s to destabilize decision-making until mistakes become inevitable.”

SMBs often operate with lean teams and informal communication norms. Processes evolve quickly, and documentation may lag behind reality. This makes it difficult to distinguish legitimate operational changes from manipulation especially when messages sound like they came from inside the organization.

Unlike larger enterprises, SMBs may not log or audit internal process changes with the same rigor, allowing AI-generated misinformation to persist unnoticed.

In some cases, the operational drift eventually led to missed payments, contractual breaches, or internal disputes, consequences that appeared self-inflicted rather than malicious.

Security experts warn that this technique represents a shift from event-based attacks to environmental manipulation. There is no single moment of compromise, no obvious alert, and no clean incident timeline.

This isn’t about breaking systems,” one advisor noted. “It’s about quietly reshaping how people work until the organization breaks itself.

Because the activity blends into normal business communication, traditional security tools often fail to detect it. The damage only becomes visible after trust and coordination have already eroded.

Analysts say defending against this class of threat will require organizations to rethink assumptions about internal communication. Verification, change management discipline, and clarity around decision authority are becoming as important as technical controls.

As AI continues to advance, experts caution that the most dangerous attacks may not arrive as alarms or outages.

They may arrive as helpful messages, reasonable suggestions, and small changes slowly steering organizations off course.

For SMBs, the challenge ahead is not just protecting systems, but protecting shared understanding itself.

Following the risk behind the ROI. — Leila Park

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Satellite Error Causes Widespread Banking and Transit Disruptions

Leila Park

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Satellite dishes at a SkyGrid ground station in Vancouver, where a timing fault caused nationwide payment and transit disruptions.

November 11, 2025 — Monday’s unexpected disruption across Canada’s banking and transit systems has raised new questions about how vulnerable the country’s digital backbone has become to invisible faults, and how easily precision can unravel at scale.

For nearly six hours, payment terminals, trading systems, and commuter networks were thrown into chaos after a timing fault aboard a SkyGrid Communications satellite sent inaccurate synchronization signals to ground-based systems. The result: frozen transactions, halted trades, and locked transit gates across major cities.

From Vancouver’s transit cards to Toronto’s stock exchange, the pattern was clear — infrastructure that once seemed distinct now depends on the same unseen heartbeat pulsing from orbit. When that heartbeat falters, the whole system stumbles.

It’s astonishing how much of modern life runs on the assumption that time is perfect,” said Dr. Amira Doucette, a cybersecurity researcher at Laurentian University. “When your clocks drift, your trust drifts. Every financial ledger, every secure transaction — it all breaks down.

The incident began around 9:14 a.m. Monday, when banks, telecom carriers, and public transit systems started reporting timestamp errors. While SkyGrid initially described it as a “configuration anomaly,” federal investigators are not ruling out the possibility of deliberate interference.

This wasn’t an outage you could see,” said a senior government analyst familiar with the investigation. “It was silence — and in that silence, everything froze.

By mid-afternoon, synchronization was restored, and queued transactions began replaying. But experts say the episode exposed just how fragile Canada’s digitized economy has become. A single orbital fault managed to slow millions of micro-interactions across sectors, revealing the extent to which precision timekeeping underpins the nation’s trust infrastructure.

Some officials privately compared the event to cyber-operations seen abroad — where technical disruptions are used to mask deeper intrusions or manipulate public confidence. Though SkyGrid maintains there’s no evidence of compromise, the cascading nature of the failure has left analysts uneasy.

This is the modern equivalent of a power outage,” said Michael Gervais, a former CSE official. “Except now, it’s not the lights that go dark — it’s the systems that decide what’s true, secure, and synchronized.

A post-incident review is underway involving the Canadian Space Agency, Public Safety Canada, and the CSE, examining why redundant ground links failed to take over and whether the anomaly was purely technical.

For most Canadians, the disruption was temporary — a few failed payments, a stalled subway gate, a flickering stock ticker. But for those watching closely, it marked something bigger: the moment a nation glimpsed how its digital world could falter not from an attack or storm, but from a second of silence above the clouds.

Following the risk behind the ROI. — Leila Park

ODTN News’ Ayaan Chowdhury contributed to this report.

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Employee Speaks Out: “We Were Told to Power the Profits, Not the People.”

Leila Park

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siberX Power Co AI Data Centre.

A siberX Power Co. employee has come forward alleging that internal recovery priorities were deliberately skewed toward restoring AI data centres and corporate clients before power was returned to critical services and residential zones.

In an interview with ODTN News, the employee, who requested anonymity for fear of retaliation described the atmosphere inside the company as “tense, chaotic, and corporate-first.”

We were watching hospitals run on fumes while being told to focus on data clusters feeding multimillion-dollar contracts,” the source said.

The CEO’s message was loud and clear — get the AI back online, everything else can wait.

The leak follows an internal email from SPC’s CEO, Elise Varnholt, reportedly instructing teams to “prioritize compute capacity” and “avoid discussing client names” in public statements. The email, which surfaced on social media late Monday, has drawn heavy criticism from officials and citizens alike.

Regulators at the Alberta Electric System Operator (AESO) have acknowledged awareness of the directive but declined to comment on “ongoing operational decisions” during recovery efforts.

Meanwhile, public frustration continues to mount as large sections of southern Alberta remain without full power four days after the blackout began.

Energy analysts warn that the fallout could extend beyond infrastructure — raising questions about corporate ethics, crisis leadership, and the role of AI-driven industries in critical grid planning.

When profit dictates the order of recovery, public trust doesn’t just flicker — it burns out,” said Dr. Anika Shah, a crisis management researcher at McGill University.

ODTN.news will keep you updated on this shocking story as we uncover more of the truth behind the crisis.

Following the risk behind the ROI. — Leila Park

ODTN News’ Mira Evans & Ayaan Chowdhury contributed to this report.

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