How cybercriminals are attacking your business clients in 2026

Cybersecurity professionals need to keep training employees at businesses large and small to scrutinize inbound emails.

A new report from insurance provider Coalition, the 2026 Cyber Claims Report, finds business email compromise (BEC) attacks increased by 171% in 2025. BEC attacks involve cybercriminals impersonating a company’s leaders to trick employees into sending data, including log-in credentials or money.

On the slightly brighter side, Canada-specific data from the report finds the severity of BEC attacks fell by 17% during the past year, with an average loss totalling $21,000.

Meanwhile overall cyber claims in Canada rose by 102% during 2025, and severity of those claims fell 66%. The average loss amount was $88,000.

Incidents of funds transfer fraud also rose sharply (57%), although severity fell 68% for an average loss amount of $116,000.

Related: The cyber scam that’s trending more than ransomware

Fraudulent funds transfers attacks are used by cyber scammers to fool a company’s employees into sending funds into the wrong accounts. It often works alongside BEC attacks, by taking advantage of an employee sending account credentials to a scammer. 

What are the most popular attack vectors?

BEC attacks lead the way at 36%, followed by funds transfer fraud at 25%, ransomware (17%), miscellaneous first-party loss (16%), and third-party allegations (6%).

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The report’s global findings saw initial ransom demands surge 47% year-over-year between 2024 and 2025 to an average exceeding US$1 million. But it notes 86% of targeted businesses refused to pay those ransoms.

Globally, the report says, projections for cybersecurity spending rose 24% over the past two years, from $193 billion in 2024 to $240 billion in 2026 (per a Gartner forecast).

Related: Protecting clients from deepfake damage

“The data suggests a turning point in the economics of ransomware,” says Coalition’s global head of claims, Rob Jones. “While the threat actors escalate their demands to push for higher, seven-figure payouts, cyber insurer support is helping businesses limit losses and is starting to help tip the scales back in favor of defenders.”

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Further, businesses with more than $100 million in revenue saw claims frequencies five times higher than smaller organizations, global findings in Coalition’s report note.

The report is derived using data collected from Coalition’s policyholders in the U.S., U.K., Canada, Australia and Germany.

Phil Porado

Phil, an award-winning journalist with over 30 years of experience in financial topics, has been managing editor of Canadian Underwriter for more than three years.