The prorogation of Parliament has brought the progress of Bill C-26, a crucial cybersecurity bill, to a standstill. Experts are concerned about the vulnerability of critical industries to cyberattacks in the absence of this legislation.
More than two years after its introduction, a federal cybersecurity bill designed to safeguard Canada 's critical infrastructure appeared poised to reach its final stage – until the Prime Minister's decision to prorogue Parliament abruptly halted its progress. This move has ignited concerns among Canadian cybersecurity experts, who express apprehension that businesses operating within critical industries remain vulnerable to cyberattacks.
Consequently, they are urging these businesses to take proactive measures to fortify their defenses in the absence of legislative protection.Canada already trails behind its global counterparts in enacting cybersecurity legislation, according to industry observers. However, the demise of Bill C-26 has exacerbated this gap, further diminishing Canada's standing in the realm of cybersecurity.'We're the weak link now,' stated David Shipley, the Chief Executive Officer of cybersecurity software firm Beauceron Security Inc. 'This constitutes gross negligence when it comes to national security and a breach of the fundamental duty the nation-state owes its citizens to provide security against foreign adversaries and international criminality.' Denis Villeneuve, the Cybersecurity and Resilience Practice Leader for Canada at global IT services company Kyndryl Holdings Inc., echoed these sentiments, asserting that the lack of federal legislation leaves Canada 'vulnerable to potential threats.' 'When malicious actors worldwide seek to exploit vulnerable cities or nations,' he explained, 'they gravitate towards those with the weakest security measures in place.'Canada confronts what Senator John McNair has characterized as 'unprecedented cyberthreats' affecting all segments of society. He highlighted that in 2023, automated defenses deployed by the Communications Security Establishment (CSE) thwarted 2.3 trillion attempts to breach the Canadian government's systems. 'If the government is targeted 2.3 trillion times a year,' Mr. McNair stated during his December motion for the cybersecurity bill's third reading, 'how often do you think our telecommunications, transportation, banking, and energy sectors are targeted?' This escalating threat poses a significant problem for Canadian businesses, which incurred a staggering $1.2 billion in recovery costs in 2023. This figure is more than double the expenditure recorded two years earlier, according to the most recent data available from Statistics Canada. Telecom companies, meanwhile, have been diligently monitoring their networks for any indications of compromise by a group of Chinese hackers known as -, among others.Bill C-26 would have mandated critical industries such as telecommunications, banking, transportation, and energy to establish robust cybersecurity programs and report any incidents, among other provisions. It also aimed to amend the Telecommunications Act to solidify the federal government's ban on Huawei and ZTE equipment from Canada's 5G networks. However, the prorogation of Parliament by Justin Trudeau earlier this month effectively nullified bills that had not yet received royal assent, including Bill C-26. It will be necessary to reintroduce the bill when the new parliamentary session commences, restarting the legislative process unless reinstated at the same stage it had reached prior to prorogation.Imraan Bashir, the National Public-Sector Cybersecurity Leader at KPMG, expressed hope that the bill will be 'revived and prioritized' as it would introduce crucial changes to protect Canadians from the escalating threat of cyberattacks. In the meantime, he and other industry experts are urging companies in critical sectors to adopt a proactive stance. 'I firmly believe that we must pursue legislation to ensure compliance,' stated Nick Galletto, the Cybersecurity Leader at EY Canada. 'But I also strongly advocate that, as a cybersecurity community, we must remain vigilant and proactive and not solely rely on government legislation, as this process may take considerable time.
CYBERSECURITY BILL C-26 CANADA CRITICAL INFRASTRUCTURE LEGISLATION VULNERABILITY CYBERATTACKS
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