On February 25, 2024, the City of Hamilton, Ontario fell victim to a devastating ransomware attack. Nearly 80% of the city’s systems were taken offline, disrupting critical municipal services.
The attackers demanded an eye-popping $18.5 million ransom. Hamilton refused to pay, choosing instead to recover data where possible and rebuild its systems from the ground up.
So far, that decision has cost the city $18.4 million, with an additional $400,000 per month being spent until at least November 2026 to fully restore its infrastructure.
Mayor Andrea Horwath summed it up:
“This has been a test of our system and a test of our leadership. We are not sweeping this under the rug. We are owning it, we're fixing it and we're learning from it.”
But here’s the kicker—the root cause of the attack was something shockingly simple:
A lack of Multi-Factor Authentication (MFA) across city systems.
To make matters worse, because Hamilton didn’t have MFA in place, their cyber insurance policy won’t cover any of the financial damage. That means taxpayers are left footing the entire bill.
Why Multi-Factor Authentication (MFA) Is Non-Negotiable
MFA is one of the easiest, most cost-effective ways to protect your business from cyberattacks. It adds an extra layer of security to your logins, making it much harder for hackers to gain access—even if they steal a password.
Examples of MFA include:
✔ A code sent to your phone via text
✔ An authentication app like Google Authenticator
✔ Biometric verification (fingerprint or face scan)
Why does it matter?
- Reduces the risk of unauthorized access
- Prevents account takeovers
- Helps meet compliance requirements
This is why insurance companies require MFA. It’s a low-cost safeguard that significantly lowers risk—and skipping it could void your coverage.
Following Your Cyber Insurance Policy Could Save Your Business
A cyber insurance policy is not just paperwork—it’s a roadmap for how to protect your business. If you don’t follow its requirements, your claim can be denied after a breach.
For Hamilton, this meant millions in unrecoverable losses. For your business, it could mean financial devastation.
What This Means for Ontario Businesses
The digital threat landscape is evolving fast, and cyber insurance has become essential. But it’s not just about having a policy—you need to meet the security requirements to stay compliant and eligible for coverage.
These requirements often align with broader regulations like SOC 2 and PIPEDA, so meeting them not only protects your business but also helps you stay on the right side of the law.
How DAGI Can Help
At DAGI, we help Ontario businesses:
✅ Stay compliant with cyber insurance policies
✅ Implement security measures like MFA
✅ Align with regulatory standards such as SOC 2 and PIPEDA
We believe your business deserves more than just tech support—you deserve a partner in security and compliance.
Don’t wait for a cyberattack to expose your vulnerabilities. Let’s protect your business today.
👉 Book a free cybersecurity consultation with DAGI and make sure your business is covered before it’s too late.
