The 7 Most Dangerous Phishing Tactics Targeting Canadian Businesses Right Now

Written by Resitek Team | Feb 18, 2026 8:54:18 PM

If you still picture phishing as poorly written emails from a fake prince, you’re about ten years behind.

Modern phishing attacks targeting Canadian businesses are structured, targeted, and increasingly powered by automation and AI. They are designed to bypass technical controls and exploit human decision-making under pressure.

After 25+ years in Canadian managed IT services, and responding directly to phishing incidents, business email compromise (BEC), and credential theft,  I can tell you this:

Mid-sized businesses (20–80 employees) are prime targets.

You’re large enough to have money, but small enough to lack enterprise-level security teams.

Let’s break down the seven most dangerous phishing tactics affecting Canadian organizations right now,  how they work, why they succeed, and what you can do about them.

Why Phishing Has Evolved

Attackers don’t need to break through firewalls if they can log in through the front door.

According to Verizon’s 2024 Data Breach Investigations Report (DBIR), the human element is involved in 68% of breaches [1]. That includes phishing, social engineering, and credential misuse.

The Canadian Centre for Cyber Security continues to identify phishing as one of the most common initial access methods in ransomware incidents [2].

IBM’s Cost of a Data Breach Report 2023 shows Canadian breach costs averaging $6.94 million CAD [3].

The math is simple:

Phishing works.
So attackers refine it.

1. Business Email Compromise (BEC)

How It Works

Business Email Compromise isn’t loud or flashy.

It’s quiet.

An attacker gains access to a legitimate email account, often via stolen credentials, and monitors conversations. Then, at the right moment, they:

  • Redirect payment instructions
  • Alter invoice details
  • Impersonate executives
  • Request urgent wire transfers

There’s no malware attachment. No obvious red flag.

Just a “normal” email from a trusted source.

Why It’s Dangerous

BEC attacks target finance teams and leadership directly. They exploit trust.

Verizon consistently identifies BEC as one of the most financially damaging social engineering tactics [1].

Practical Prevention

  • Enforce MFA on all email accounts
  • Use conditional access policies
  • Enable external email tagging
  • Require verbal confirmation for payment changes
  • Monitor unusual login locations

Strengthen Your Email Security Posture

 

2. MFA Fatigue Attacks

How It Works

An attacker obtains login credentials.

Instead of bypassing MFA, they exploit it.

They repeatedly trigger authentication prompts until the user, annoyed or distracted, clicks “Approve.”

One accidental approval, and the attacker is in.

Why It’s Dangerous

This tactic bypasses organizations that think “we have MFA, we’re safe.”

Microsoft has documented increasing use of MFA fatigue techniques against cloud-based accounts [4].

Practical Prevention

  • Use number matching MFA
  • Enable geolocation restrictions
  • Implement device trust policies
  • Monitor repeated MFA prompts
  • Train users to report unexpected login requests

3. QR Code Phishing (“Quishing”)

How It Works

Instead of links in emails, attackers embed malicious QR codes.

Users scan them with personal devices, bypassing corporate email filtering.

The QR code leads to:

  • Fake Microsoft 365 login pages
  • Credential harvesting portals
  • Malware download sites

Why It’s Dangerous

Email security filters often can’t inspect QR code destinations.

It shifts the attack from desktop to mobile — where security controls are weaker.

Practical Prevention

  • Train employees not to scan unknown QR codes
  • Implement mobile device security policies
  • Use advanced email scanning tools
  • Restrict access from unmanaged devices

4. AI-Generated Spear Phishing

How It Works

AI tools allow attackers to:

  • Mimic writing style
  • Reference real projects
  • Eliminate spelling errors
  • Craft personalized messages

This is no longer mass spam.

It’s tailored.

Why It’s Dangerous

Traditional red flags, grammar errors, awkward tone,  are disappearing.

Microsoft has reported increasing sophistication in AI-assisted phishing campaigns [4].

Practical Prevention

  • Implement advanced threat protection
  • Monitor for abnormal login patterns
  • Conduct realistic phishing simulations
  • Reduce public exposure of internal structures

 

Schedule a Phishing Risk Assessment

5. Vendor Impersonation

How It Works

Attackers impersonate:

  • Suppliers
  • Contractors
  • IT providers
  • Legal advisors

They send urgent payment changes or updated banking instructions.

Because mid-sized businesses rely on recurring vendor relationships, these emails appear legitimate.

Why It’s Dangerous

Vendor impersonation often targets accounting departments.

The structure mirrors legitimate transactions.

Practical Prevention

  • Require dual approval for payment changes
  • Confirm vendor updates verbally
  • Maintain a documented verification process
  • Restrict finance access permissions

6. Cloud Credential Harvesting

How It Works

Attackers create fake:

  • Microsoft 365 login pages
  • SharePoint portals
  • Google Workspace prompts

Users unknowingly enter credentials.

The attacker logs in directly.

Why It’s Dangerous

Cloud services are core infrastructure.

Compromised cloud credentials often lead to:

  • Data exfiltration
  • Email rule manipulation
  • Lateral movement

The Canadian Centre for Cyber Security emphasizes credential theft as a common access vector [2].

Practical Prevention

  • Use phishing-resistant MFA
  • Disable legacy authentication
  • Monitor impossible travel logins
  • Implement identity protection alerts

7. Executive Impersonation Fraud

How It Works

An attacker impersonates a CEO or senior executive and sends:

“Are you available?”

Then follows up with:

“I need you to handle a confidential transfer immediately.”

The tone is urgent. The authority is implied.

Why It’s Dangerous

Junior employees hesitate to question leadership requests.

This tactic exploits hierarchy and urgency.

Practical Prevention

  • Formalize payment authorization procedures
  • Train staff to question urgency
  • Implement escalation protocols
  • Limit executive email exposure online

The Financial and Operational Impact

Phishing isn’t just an IT nuisance.

It’s operational disruption.

IBM’s 2023 breach report highlights detection and escalation as major cost drivers [3].

When attackers gain credential access:

  • Financial loss can occur within hours
  • Client trust is damaged
  • Regulatory exposure increases
  • Insurance claims become complicated

Phishing also directly impacts cyber insurance requirements in Canada.

Insurers now examine:

  • MFA enforcement
  • Security training records
  • Monitoring maturity
  • Incident response documentation

Weak phishing defenses increase underwriting friction.

A Practical Phishing Defense Framework

To reduce exposure to phishing attacks targeting Canadian businesses, implement this framework:

1. Harden Identity Controls

  • Enforce MFA everywhere
  • Disable legacy authentication
  • Monitor abnormal login patterns

2. Train Humans Realistically

  • Quarterly phishing simulations
  • Real-world scenario training
  • Executive-targeted awareness sessions

3. Strengthen Email Security

  • Advanced threat protection
  • External sender tagging
  • DMARC, DKIM, SPF enforcement

4. Monitor & Respond

  • Centralized logging
  • Alert triage processes
  • Rapid containment procedures

5. Document & Test

  • Incident response plan
  • Recovery playbooks
  • Tabletop exercises

The Strategic Perspective

Phishing attacks are no longer random.

They are structured business models targeting operational weaknesses.

After 25+ years supporting Canadian mid-sized businesses, we’ve seen the shift firsthand:

Attackers adapt faster than policies.

The organizations that stay ahead treat phishing defense as:

  • Governance
  • Process
  • Culture
  • Technology

Not just spam filtering.

Final Thoughts

The most dangerous phishing attacks targeting Canadian businesses right now are:

  1. Business Email Compromise
  2. MFA fatigue attacks
  3. QR-code phishing
  4. AI-generated spear phishing
  5. Vendor impersonation
  6. Cloud credential harvesting
  7. Executive impersonation

These tactics succeed because they exploit trust and urgency.

If your organization hasn’t reviewed its phishing defenses recently, now is the time.

Schedule a Cybersecurity Risk Assessment

References

[1] Verizon, 2024 Data Breach Investigations Report (DBIR)
https://www.verizon.com/business/resources/reports/dbir/

[2] Canadian Centre for Cyber Security, National Cyber Threat Assessment 2023–2024
https://www.cyber.gc.ca/en/guidance/national-cyber-threat-assessment-2023-2024

[3] IBM Security, Cost of a Data Breach Report 2023
https://www.ibm.com/reports/data-breach

[4] Microsoft, Digital Defense Report 2023
https://www.microsoft.com/en-us/security/business/microsoft-digital-defense-report