From Reactive to Proactive: The Importance of Predicting and Preventing Cyber Threats

Today, most Canadian organizations understand it’s no longer a matter of if they’ll face a cyber attack – but when.

Yet too many still take action only after a breach or fraud has occurred, rather than doing everything possible to detect threats and vulnerabilities early, and stop them in their tracks before damage is done.

In a digital threat landscape dominated by AI-powered scams, deepfake impersonations and rising fraud, a reactive strategy simply isn’t enough. It’s too slow. Too costly. And often, too late.

Canadians lost $638 million to fraud and cyber crime last year. Reported losses to the Canadian Anti-Fraud Centre since 2021 have now surpassed $2 billion.

Cyber security is no longer just a crisis to respond to – it’s a growing risk that must be predicted and prevented long before it makes headlines.

That’s why BOXX Insurance combines real-time threat prediction and detection, breach protection and comprehensive cyber insurance to help small businesses and individuals stay ahead of today’s threats. All-in-one solutions like Cyberboxx® Business include Cyberboxx® Assist as standard, to equip SMEs with the tools, guidance and expert support they need to predict and prevent cyber threats — and how to respond to and recover from cyber attacks — before they escalate.

The Risk Conversation Is Changing

Cyber crime is evolving faster than most organizations can keep up.

A cyber attack now happens every 39 seconds. In the past year, over half of Canadian businesses experienced a cyber incident – and the average cost of recovery has doubled to $1.2 billion. Small businesses alone spent $300 million each to recover.

The speed and sophistication of today’s attacks – from social engineering to AI-powered exploits, are forcing a shift in mindset: prevention isn’t just smarter; it’s essential.

Cyber risk can no longer sit in the IT department. It must be managed across the entire business, including vendors and supply chains. Clients, regulators and partners increasingly expect proof that your systems are protected, your data is safe and your operations can withstand disruption.

When organizations proactively embed cyber risk into their operating model, the benefits ripple outward — stronger cyber security culture, deeper trust and greater resilience when it matters most.

Proactive Protection in Practice

As businesses become increasingly interconnected and new technologies like quantum computing and Artificial Intelligence (AI) evolve, smarter prevention begins with better visibility.

Cyber criminals are now levering AI and machine learning to launch hyper-real attacks – from deepfakes and agentic malware to automated phishing. The only way to stay ahead is by spotting threats before they strike.

Tools like BOXX’s Attack Surface Management continuously scan your digital perimeter – including third-party vendors and supply chains – to detect vulnerabilities early. BOXX also monitors the dark web for ‘hacker chatter’ that mentions clients, flagging potential threats and advising on action before a single dollar is lost.

But technology alone isn’t enough. Human error still accounts for over 95% of cyber security breaches. Regular cyber awareness training remains one of the most effective lines of defence – reducing cyber-related risks by up to 70%.

BOXX data indicates financial fraud, including phishing and social engineering, are the leading type of cyber threats. Employee training must go beyond security and fraud prevention basics like verifying links, senders and payment details – it needs to be embedded in every organization’s culture. BOXX’s new Cyberboxx® Assist offering provides organizations with essential tools to proactively predict and prevent fraud and security incidents.

In any proactive cyber protection strategy, prevention matters – so does preparation. You can’t prevent every incident, but you can control how ready you are when one hits. That means having a clear incident response plan, ransomware and fraud playbooks, a business continuity strategy and disaster recovery roadmap.

Working with an insurance partner that helps you predict and prevent what you can — and respond and recover swiftly when you must — empowers businesses to minimize damage and bounce back stronger.

Insurance That Prevents, Not Just Protects

As cyber threats grow faster, smarter and more targeted, businesses need more than an insurance policy — they need a partner in resilience.

The most effective insurers today do more than pay claims. They help businesses anticipate risks, prevent incidents, respond in real-time and recover smarter 24/7.

That’s why more small businesses are turning to BOXX – for broad coverage bundled with proactive tools like risk assessments, dark web monitoring, attack surface management, employee training and expert guidance through our virtual CISO.

When suspicious activity surfaces — like a leaked credential or targeted phishing scam — BOXX’s Hackbusters® team steps in fast. In the past year, BOXX has prevented over 80% of potential incidents from turning into claims through early detection and hands-on support.

Businesses shouldn’t be left stitching together protection. An all-in-one solution that combines prevention, protection and rapid response is how insurance becomes a strategic asset.

Partners in Proactive Cyber Resilience

True cyber resilience isn’t built in isolation – it’s forged through collaboration, trust and shared accountability.

Modern insurers like BOXX understand our role goes far beyond handing over a policy and walking away. Our cyber security experts work closely with clients to interpret threat intelligence, take action on alerts and make confident, informed decisions under pressure.

Tools like Cyberboxx® Assist – embedded in every Cyberboxx® Business policy – reflect a much-needed shift from reactive claims response to proactive cyber resilience – creating a shared incentive between insurers and clients to prevent breaches before they happen.

But collaboration can’t stop there. As noted in the Canadian Cybersecurity Network (CCN) State of Cyber Security in Canada 2025 report, a whole-of-society approach to cyber resilience – across public and private sectors – has never been more important.

As the only insurance provider member of the CCN, BOXX contributes insights from the front lines of cyber protection, actively engaging with security leaders and participating in knowledge-sharing efforts to help Canadian businesses stay one step ahead of today’s most complex threats.