Cyber risk is no longer confined to IT systems - it’s embedded in how businesses operate. As work becomes more distributed and digital, every access point - whether a laptop, mobile phone, or remote connection - can introduce risk. Mobile devices are one of the fastest-growing entry points, but they are part of a larger shift that requires a more holistic approach to cybersecurity.
Cyber risk has become a constant feature of the operating environment, with incidents carrying the potential to create widespread and cascading disruption across everyday business and social systems.1
Mobile devices now sit at the intersection of productivity, access, and trust, which means weak mobile security can quickly become a business issue. When a single compromised device can interrupt operations or expose sensitive information, mobile security becomes far more than a technology concern.
The implications span financial loss through fraud, remediation, downtime, and regulatory exposure; reputational damage that can invite scrutiny and weaken brand equity; erosion of client trust that may reduce confidence and increase attrition risk; and operational disruption that can delay service, interrupt workflows, and place added burden on recovery efforts.
Verizon found that 80% of organizations consider mobile devices critical to their operations, while IBM reported that the average cost of a data breach in Canada reached CA$6.32 million in 2024.2 3
For business leaders, the question isn’t whether mobile devices introduce risk - it’s whether cybersecurity practices have kept pace with how employees actually work. Mobile devices are especially vulnerable to cyber threats because they’re often used in public Wi‑Fi environments and shared workspaces, increasing the risk of malware, network attacks, phishing, and other scams.
Flexibility can support productivity, but it also presents unique cybersecurity challenges including:
- Operational risk: Lost devices, unsecured remote access, and unsafe public Wi‑Fi can interrupt business processes, delay approvals, and expose systems to compromise. The impact is not limited to IT teams. IBM found that 70% of breached organizations reported significant or moderate operational disruption, underscoring how quickly a cyber issue can become a business continuity issue.4
- Data and privacy risk: Unsafe apps, open connections, and weak controls around mobile access can expose client or business information, increasing the likelihood of regulatory costs, reputational damage, and trust erosion. In Canada, 28% of organizations that experienced a cyber attack said it hurt their reputation and 26% said it cost them customers, showing how cyber incidents can extend beyond remediation costs into long-term relationship damage.5
- Human risk: Weak passwords, phishing, and social engineering continue to make employees a key point of vulnerability, especially on mobile devices where urgency and convenience often shape behaviour. Verizon found that 77% of respondents believe AI-assisted attacks such as deepfakes and SMS phishing are likely to succeed, reinforcing the need for strong awareness, authentication, and policy controls.2
How to Protect Mobile Devices
Organizations typically evolve through stages of cybersecurity maturity - from reactive protection to proactive risk management and, ultimately, enterprise-wide resilience. Mobile security plays a role at each stage.
Mobile devices have become essential to how businesses communicate, approve transactions, and stay connected. That convenience also makes them an attractive entry point for cybercriminals, who increasingly rely on urgency, impersonation, and deceptive prompts to exploit human behaviour.
Reducing mobile risk requires a coordinated approach that combines strong controls, intentional design, and sustained employee awareness.
- Reinforce foundational controls: Prioritize core protections such as strong passcodes, multifactor authentication, biometrics, automatic device locking, and timely software updates to reduce exposure and strengthen resilience.
- Design for secure behaviour by default: Embed security into the employee experience so that safer choices are easier, more consistent, and less dependent on individual judgment in the moment.
- Strengthen organizational vigilance: Build awareness through ongoing education that equips employees to identify phishing, suspicious messages, and unusual requests, and to respond with appropriate caution.
- Lead mobile security as an enterprise priority: Position mobile security as a shared business imperative spanning technology, policy, and workforce education, rather than as a responsibility owned by a single function.
Mobile device management (MDM) can strengthen that foundation by giving organizations more visibility and control over smartphones, tablets, and laptops. From enforcing updates to restricting risky applications and remotely wiping lost or stolen devices, MDM helps businesses move from reactive response to more proactive risk management.
Why VPN Access Helps
As work extends beyond traditional office environments, secure remote access becomes a core business requirement. A virtual private network (VPN) helps protect data in transit by creating a secure connection between employee devices and company systems, reducing the likelihood that sensitive information can be intercepted when people work from home, travel, or connect through public networks.
The Canadian Centre for Cyber Security advises that organizations should assess its business needs and capabilities and weigh the risks when choosing a VPN.6
In practice, that means selecting a solution that aligns not only with technical requirements, but also with how employees actually work and how the business manages access across its environment. VPNs are also most effective when combined with multifactor authentication, adding another layer of protection against unauthorized access.
There are four types of VPN commonly used by businesses:
- Gateway-to-gateway: Used to connect two networks by creating a VPN over a public network and securing traffic between them. This type of VPN is typically used to connect remote office sites.
- Host-to-gateway (remote access): Used to provide remote access to an enterprise network, such as from a remote worker’s laptop.
- Host-to-host: Used to connect a host to a specific resource on an enterprise network or another specific host.
- Third-party privacy: Used to secure a connection from a public access point, such as an airport or hotel Wi-Fi hotspot, to a third-party VPN provider. The provider then redirects the user’s traffic to make it appear to originate from the third party’s network.
Cybersecurity is Everyone’s Responsibility
Strong cybersecurity is not just a technical function - it’s an organizational capability. It requires alignment across leadership, employees, policies, and technology to ensure security is embedded into everyday decision-making. A layered security approach that also includes clear rules, monitoring, and reliable support so that employees have a good understanding of what secure behaviour looks like.
The businesses that recruit both technology and their employees to help strengthen their organization’s security will be better prepared to protect customer trust, reduce disruption, and stay resilient when threats arise.
As cyber threats continue to evolve, businesses don’t need to navigate them alone. At Scotiabank, we support clients through fraud awareness, education, and practical guidance to help strengthen their cybersecurity posture and protect their operations. Learn more about how you can elevate your companys mobile device security here.
Disclaimer
This article is provided for information purposes only. It is not to be relied upon as financial, tax or investment advice or guarantees about the future, nor should it be considered a recommendation to buy or sell. Information contained in this article, including information relating to interest rates, market conditions, tax rules, and other investment factors are subject to change without notice and The Bank of Nova Scotia is not responsible to update this information. All third-party sources are believed to be accurate and reliable as of the date of publication and The Bank of Nova Scotia does not guarantee its accuracy or reliability. Readers should consult their own professional advisor for specific financial, investment and/or tax advice tailored to their needs to ensure that individual circumstances are considered properly, and action is taken based on the latest available information.
Sources:
1. Communications Security Establishment Canada. (2024). National cyber threat assessment 2025-2026. Canadian Centre for Cyber Security. https://www.cyber.gc.ca/en/guidance/national-cyber-threat-assessment-2025-2026
2. Verizon. (2024). 2024 Mobile Security Index. https://www.verizon.com/business/resources/Tbec/reports/2024-mobile-security-index.pdf
3. IBM Canada. (2024, July 30). IBM Report: Escalating Data Breach Disruption Pushes Cybersecurity Costs in Canada. https://canada.newsroom.ibm.com/2024-07-30-IBM-Report-Escalating-Data-Breach-Disruption-Pushes-Cybersecurity-Costs-in-Canada
4. IBM. (2024, July). Cost of a data breach report 2024. IBM.
5. Canadian Internet Registration Authority. (2024, October 1). New CIRA data finds cyber crime is driving customers away from impacted Canadian businesses. https://www.cira.ca/en/resources/news/cybersecurity/2024-cira-data-finds-cyber-crime-is-driving-customers-away-from-impacted-canadian-businesses/
6. Canadian Centre for Cyber Security. (n.d.). Virtual private networks. https://www.cyber.gc.ca/en/guidance/virtual-private-networks-itsap80101