Human-centric threats continue to impact organizations with reports of direct financial penalties due to phishing up 326%

TORONTO, Canada, February 27, 2024 – Proofpoint, Inc., a leading cybersecurity and compliance company, today released its tenth annual State of the Phish report, revealing that two-thirds (67%) of Canadian employees knowingly put their organizations at risk, potentially leading to ransomware or malware infections, data breaches, or financial loss. And while the incidence of successful phishing attacks has slightly declined (66% of surveyed organizations in Canada experienced at least one successful attack in 2023 versus 82% the previous year), the negative consequences have soared, with a 326% increase in reports of financial penalties, such as regulatory fines. 

The findings from this year’s report notably challenge the traditional belief that people take risky actions due to a lack of cybersecurity knowledge and that security awareness training alone can fully prevent unsafe behaviors. The conundrum extends to security professionals’ belief that most employees know they are responsible for protecting the organization, signaling a gap between the limitations of individual security technology and user education. 

“Cybercriminals know that humans can be easily exploited, either through negligence, compromised identity—or in some instances—malicious intent,” said Ryan Kalember, chief strategy officer, Proofpoint. “Individuals play a central role in an organization’s security posture, with 74% of breaches still centering on the human element. While fostering security culture is important, training alone is not a silver bullet. Knowing what to do and doing it are two different things. The challenge is now not just awareness, but behavior change.”

This year’s State of the Phish report provides an in-depth overview of the current threat landscape where generative AI, QR codes, and multifactor authentication (MFA) are abused by malicious actors, as sourced by Proofpoint’s telemetry of more than 2.8 trillion scanned emails across 230,000 organizations worldwide, as well as findings from 183 million simulated phishing attacks sent over a twelve-month period. The report also examines the perceptions of 7,500 employees and 1,050 security professionals across 15 countries, including Canada, showing how attitudes towards security manifest in real-world behavior and how threat actors are finding new ways to take advantage of our preference for speed and expedience, as well as the current state of security awareness initiatives. 

Key Canadian findings from Proofpoint’s 2024 State of the Phish report include: 

Employees aren’t taking risky actions because they lack security awareness: 68% of surveyed working adults in Canada admitted to taking risky actions, such as reusing or sharing a password, clicking on links from unknown senders, or handing over their credentials to an untrustworthy source. 99% of them did so knowing the inherent risks involved, meaning that 67% of employees willingly undermined their organization’s security. The motivations behind risky actions are varied, with most employees citing convenience (53%), the desire to save time (34%), and a sense of urgency as their main reasons (20%).  

Disconnect between IT teams and employees for driving real behavior change: While 82% of surveyed security professionals in Canada said that most employees know they are responsible for security, 61% of surveyed employees either weren’t sure or claimed that they’re not responsible at all. And even though virtually all employees who took a risky action knew the inherent risks—a clear indication security training is working to drive employee awareness—there are clear disparities between what security professionals and employees think is effective to encourage real behavior change. Security pros believe that more training (92%) and tighter controls (92%) are the answer, but an overwhelming majority of surveyed employees (85%) said they’d prioritize security if controls were simplified and more user-friendly.  

MFA continues to provide a false sense of security, leaving businesses exposed: Over one million attacks are launched globally with the MFA-bypass framework EvilProxy every month, yet, worryingly, 88% of Canadian security professionals still believe MFA provides complete protection against account takeover. 

Business email compromise (BEC) attacks benefit from AI: Fewer organizations reported email fraud attempts globally and in Canada (58% in Canada experienced at least one attempted BEC attack compared to 64% the previous year), but attack volume grew in countries such as Japan (35% year-over-year increase), South Korea (+31%), and UAE (+29%). These countries may have previously seen fewer BEC attacks due to cultural or language barriers, but generative AI allows attackers to create more convincing and personalized emails in multiple languages. Proofpoint detects an average of 66 million targeted BEC attacks globally every month. 

Cyber extortion persists as lucrative form of attack: 66% of Canadian organizations experienced a successful ransomware infection in the past year (a 16-percentage point increase year-over-year); alarmingly, 48% of IT professionals said their organization experienced multiple, separate ransomware infections. Of the organizations impacted by ransomware, 36% agreed to pay attackers (on par with the previous year), with only 33% regaining access to their data after a single payment (down from 56% a year ago).

Telephone-oriented attack delivery (TOAD) continues to flourish: Although initially appearing as a benign message, containing nothing more than a phone number and some erroneous information, the attack chain is activated when an unsuspecting employee calls a fraudulent call center, providing their credentials or granting remote access to malicious actors. Proofpoint detects 10 million TOAD attacks globally per month globally, on average, with a recent peak in August 2023, which drew 13 million incidents. 

Despite the growing prominence and sophistication of threats such as ransomware, TOAD and MFA bypass, many organizations are not adequately prepared or trained to deal with them. Only 26% of organizations in Canada educate their users on how to recognize and prevent TOAD attacks, and only 34% educate their users on generative AI safety.

To download the State of the Phish 2024 report and see a full list of global and regional comparisons, visit: https://www.proofpoint.com/us/resources/threat-reports/state-of-phish. 

For more information on how to drive behavior change, visit: https://www.proofpoint.com/us/product-family/security-awareness-training.  

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About Proofpoint, Inc. 

Proofpoint, Inc. is a leading cybersecurity and compliance company that protects organizations’ greatest assets and biggest risks: their people. With an integrated suite of cloud-based solutions, Proofpoint helps companies around the world stop targeted threats, safeguard their data, and make their users more resilient against cyber attacks. Leading organizations of all sizes, including 85 percent of the Fortune 100, rely on Proofpoint for people-centric security and compliance solutions that mitigate their most critical risks across email, the cloud, social media, and the web. More information is available at www.proofpoint.com. 

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