AI-Driven Fraud Threatens Canadian Businesses Amid New Insurance Coverage

BOXX Insurance has introduced new coverage for AI and deepfake-related incidents in its Cyberboxx® Business policy, addressing the rising threat of AI-driven fraud. Recent research indicates that 81% of Canadian businesses that experienced fraud in the past year faced AI-enabled attacks, with 72% reporting losses of up to 5% of annual profits. The sophistication of these attacks includes AI-generated phishing emails, deepfake documents, and voice-clone impersonation calls. As a result, 94% of business leaders express concerns about future AI-powered attacks. Despite the growing threat, only 26% of businesses have a comprehensive response plan in place. BOXX's updated policy aims to provide clarity and protection against these emerging risks, reinforcing its commitment to safeguarding clients in an evolving cyber landscape.

Key Points: • BOXX Insurance has launched AI coverage to combat rising deepfake and social engineering threats. • 81% of Canadian businesses facing fraud also encountered AI-enabled attacks in the past year. • Only 26% of businesses have a tested response plan against AI-driven fraud.