Ransomware in 2026: What Every Toronto Business Needs to Know

Ransomware is the number one cyber threat facing Canadian businesses right now. In 2025, Canada recorded 352 ransomware incidents, a 46% increase from the previous year, and the Canadian Centre for Cyber Security expects that trajectory to continue through 2027. If you run a small or mid-sized business in Toronto or the GTA, this is not somebody else’s problem.

This guide breaks down what’s changed, what the actual risks look like for a business your size, and what you can do about it without a six-figure security budget.

What ransomware actually looks like in 2026

The ransomware you hear about today is nothing like the crude lock-screen malware of five years ago. Modern attacks follow a predictable sequence, and understanding it helps you see where defences need to be.

How a typical attack unfolds:

1. Initial access. Someone clicks a phishing link, or an attacker exploits an unpatched vulnerability. Stolen credentials from a previous breach are another common way in.
2. Lateral movement. The attacker moves through your network quietly, looking for file servers, backups, and high-value systems. This phase can last days or weeks before anyone notices.
3. Data theft. Before encrypting anything, attackers copy your sensitive data. Client files, financial records, employee information. Whatever they can grab.
4. Encryption. Now they lock your systems and drop the ransom note.
5. Extortion. Pay up, or the stolen data gets published. Some groups add a third layer: threatening DDoS attacks against your public-facing systems if you stall.

This “triple extortion” model is now standard practice among the larger ransomware groups. It means even if you have backups and can restore your systems, you still have a data breach on your hands.

The numbers that matter for Toronto SMBs

Here’s where things get specific for businesses in this market.

According to the Canadian Centre for Cyber Security’s Ransomware Threat Outlook (published January 2026), 13% of Canadian businesses that reported a cybersecurity incident identified ransomware as the method of attack. That’s up from 11% in the previous survey. One in six Canadian businesses (16%) were affected by a cybersecurity incident in recent years.

The financial picture is worse than most people realise. Total recovery costs from cybersecurity incidents in Canada hit $1.2 billion in 2023, double what it was between 2019 and 2021. Average ransom payouts in Canada reached $1.13 million in 2023, though for a small business the demand is typically lower. The real cost isn’t the ransom itself. It’s the downtime, the emergency IT response, the client notifications, the legal fees, and the reputational damage that follows.

And the targets are shifting. NordStellar’s 2025 ransomware report found that organisations with 51–200 employees and revenues between $5 million and $25 million experienced the most attacks. That’s the profile of a mid-sized Toronto business. Manufacturing, IT services, professional services, and construction were the most targeted industries, all sectors CG Technologies serves across the GTA.

Why smaller businesses get hit

There’s a persistent belief that ransomware only targets big corporations and hospitals. It doesn’t hold up. Smaller businesses are targeted specifically because they tend to have weaker defences, fewer IT resources, and a higher likelihood of paying to get operations back.

Ransomware-as-a-Service (RaaS) has lowered the barrier for attackers to the point where relatively unskilled operators can launch attacks using pre-built toolkits purchased on dark web marketplaces. The sophisticated development happens once; the attacks get replicated thousands of times against whoever looks vulnerable.

AI is accelerating the problem. The Canadian Centre for Cyber Security’s National Cyber Threat Assessment 2025-2026 found that cybercriminals are using generative AI to craft more convincing phishing emails, adapt malware to evade detection, and even calibrate ransom demands based on what they estimate a business can pay.

What to do about it: Six practical defences

You don’t need a Fortune 500 security budget to defend against ransomware. You need layered defences that make you a harder target than the next business. Here’s what actually works.

1. Deploy endpoint detection and response (EDR)

Traditional antivirus catches known threats by matching signatures. EDR goes further. It monitors behaviour on every endpoint (laptop, workstation, server) and flags suspicious activity in real time. At CG Technologies, we deploy Bitdefender for next-generation antivirus paired with Huntress for managed detection and response. Huntress provides 24/7 human-led threat hunting, which means someone is actively looking for threats that automated tools miss.

2. Implement multi-factor authentication everywhere

MFA is the single most cost-effective security measure you can deploy. It stops the majority of credential-based attacks dead. If an attacker steals a password (and passwords get stolen constantly), MFA adds a second layer they can’t easily bypass. CG Technologies deploys Duo Security for MFA across our client environments.

3. Manage your firewall properly

A firewall sitting in a closet with default settings from three years ago is not protecting you. It needs current firmware, active threat prevention rules, proper network segmentation, and someone monitoring it. CG Technologies manages Fortinet FortiGate firewalls for our clients, keeping configurations current and threat feeds active.

4. Train your people

Human error is involved in over 80% of breaches. Regular security awareness training, not a single annual video but ongoing simulated phishing exercises and education, materially reduces the risk that someone on your team opens the door for an attacker. We use Wizer for security awareness training across our client base.

5. Back up properly and test your restores

Backups are your last line of defence. But backups that haven’t been tested are a gamble. You need automated daily backups to an offsite or cloud location, immutable backup copies that ransomware can’t encrypt, and regular restore testing to confirm recovery actually works. If you can restore your critical systems within hours, you’ve taken away most of the attacker’s leverage.

6. Have an incident response plan before you need one

When ransomware hits, the first 60 minutes determine the outcome. If your team has to figure out who to call and what to disconnect while systems are being encrypted, you’ve already lost time you can’t get back. Write the plan now. Know who to call (your MSP, your insurance provider, legal counsel). Know which systems to isolate first. Practice it at least once a year.

What to do if you get hit

If you suspect a ransomware attack is in progress:

1. Disconnect affected systems from the network immediately. Pull the ethernet cable. Disable Wi-Fi. Don’t shut the machine down. Isolate it.
2. Call your IT provider. CG Technologies’ emergency line is 416-244-4357, available 24/7.
3. Do not pay the ransom. Payment funds criminal operations and does not guarantee data recovery. The Canadian Centre for Cyber Security advises against paying.
4. Preserve evidence. Don’t wipe systems until your IT team and, if necessary, law enforcement have what they need.
5. Report the incident. Contact the Canadian Centre for Cyber Security (cyber.gc.ca) and local law enforcement.

The bottom line

Ransomware is not going away. The Canadian Centre for Cyber Security’s assessment is blunt: ransomware will remain a significant threat to Canada for at least the next two years, and AI is making attacks cheaper, faster, and harder to detect.

But the defences work. Layered security (EDR, MFA, managed firewalls, employee training, tested backups, and a response plan) doesn’t make you invulnerable. It makes you a hard enough target that most attackers move on to someone easier.

CG Technologies has been protecting Toronto and GTA businesses from cyber threats since 1996. If you’re not sure where your defences stand, we offer a free security assessment that identifies your gaps and gives you a prioritised plan to close them. Call us at 416-244-4357 or book a consultation at cgtechnologies.com/contact-us.

Frequently Asked Questions

How common are ransomware attacks in Toronto?

Canada recorded 352 ransomware incidents in 2025, a 46% increase year over year. Toronto and the GTA, as Canada’s largest economic centre, represent a disproportionate share of that activity. The Canadian Centre for Cyber Security’s January 2026 report confirms that no organisation is immune regardless of size or sector.

What should I do if my business gets ransomware?

Immediately disconnect affected systems from the network and contact your IT provider. CG Technologies’ 24/7 emergency line is 416-244-4357. Do not pay the ransom. It funds criminal operations and does not guarantee recovery. Preserve evidence for your IT team and law enforcement, and report the incident to the Canadian Centre for Cyber Security at cyber.gc.ca.

How much does ransomware recovery cost?

Total cybersecurity incident recovery costs in Canada reached $1.2 billion in 2023, doubling from the 2019–2021 period. Average ransom demands in Canada hit $1.13 million in 2023, though small business demands are typically lower. The bigger cost driver is operational downtime, emergency IT response, legal fees, and reputational damage, which often exceeds the ransom amount itself.

Does my small business really need ransomware protection?

Yes. NordStellar’s 2025 data shows that organisations with 51–200 employees and $5–25 million in revenue are the most frequently targeted. Smaller businesses are attractive to attackers because they often have fewer security resources and are more likely to pay to restore operations. Basic protections (EDR, MFA, managed firewall, backups, and training) are affordable and dramatically reduce your risk.

What industries are most targeted by ransomware in Canada?

Manufacturing, IT services, professional services, and construction experienced the highest volume of ransomware attacks in 2025. Healthcare and finance are also frequently targeted due to the sensitivity of the data they handle. CG Technologies serves businesses across all of these sectors in Toronto and the Greater Toronto Area.