Canadian organizations told to brace for possible cyber retaliation in wake of Iran War
Canadian officials warn of possible Iranian cyber attacks in wake of ongoing war with the United States and Israel
Transcript:
Alex:
You're listening to Alex Pierson.
Great to have you here on this Wednesday, Brace for Attack, yeah. We are watching all things on the Middle East front, right? It's in turmoil, don't know where things are going.
Donald Trump saying could be four to five weeks, could be longer, could be shorter. We're already seeing Iran retaliate by barraging Israel and US allies with missiles and drones, right? So does that make Canada completely secure?
Well, the warnings are in, right? We may be at a range of missiles by Canada's digital intelligence agency warning that Iranian reprisals will likely include things like cyberattacks, right? They'll try to go up against and target Canada, you know, because of our support that has been given anything from cyberattacks, maybe on our energy grid, maybe government networks, online harassment, going after the diaspora communities.
And again, we have been warned in this country for like years, well, well over a decade to get our, you know, infrastructure shored up. Have we listened? Let us ask David Shipley, CEO and co-founder of Beauceron Security Incorporated.
Canadaʼs Cyber Vulnerability
Hello there, David.
David:
Hello.
Alex:
How are you doing? I know we've talked about this many, many times before. I'm hoping today, the conversations we've had over the years, you're going to say, yes, we're ready.
But I mean, I've talked to you mainly about all the multiple warnings we've gotten over the years about shoring up things like our cyber world.
And here we are.
David:
Yeah, the reality is we're not even close to ready. And in the fall, we learned that attackers from around the world, just by poking around, almost caused a hazardous situation in a grain silo out west, compromised industrial control systems and other ways that could have caused physical safety and other things.
And we have still not passed legislation in Canada to regulate federal sectors, banking, telecommunications, energy transmission and transportation, with basic cybersecurity frameworks, regulations, guidelines, et cetera.
And we're the last G7 country to do that. And Japan passed one before us. And their Minister of Cybersecurity doesn't even know how to use a computer.
Perfect.
Alex:
Oh, not good.
Well, I mean, hey, look, all it takes is a squirrel or a raccoon going off track to take out our energy grid, right? I mean, I say that in jest, but it is a thing still, right? We had a major power outage across Toronto last year, all because a raccoon fell into the system.
So look, we have kind of an out-of-date system as it is. I feel like we've been precarious and kind of hanging things out there for far too long and been very lucky. Are we a lucky country because it hasn't been taken advantage of?
David:
Yeah, that's what Canada gets by is on luck. And the reality is right now in the current situation, we're not the top of the menu for Iran to hit back at right now. So what cyber capability they can muster that's not got a Tomahawk missile aimed at whatever building they're hiding around in is likely hitting back as much as possible in Israel, hitting back against US targets, against other Middle Eastern targets.”
“e know there's a massive fight happening in the Strait of Hormuz related to GPS systems. So there's 1,100 ships that have been misdirected, either for their ship identification systems or GPS being spoofed like in the movie Golden Eye except for Reels. So that's likely where the attention is.
But as the situation devolves, Canada may get the odd punch thrown at it.
Global Cyber Threats
Alex:
Okay. And so again, we have a huge diaspora here of Iranian people, right? And we've got, we know we've got revolutionary guard members in this country.
So are these attacks being done over cities, or would attacks against Canada be done within Canada?
David:
More likely, it'll be done over the wires, over from remote jurisdictions. It's really stupid to hack within a place where cops can actually show up and grab you. It's kind of the number one rule of cybercrime in nation state fight club.
Alex:
Yeah.
Sorry. I don't mean to laugh, but it's like we've been so, I feel like we are so behind in so many ways, like as if we'd send the police out.
David:
Yeah. Listen, I get a chance to work with police agencies across the country. And I can tell you when it is their happiest day when a criminal is doing dumb things in the country because they actually do get to bust them.
And we saw a scam farm in Montreal, and it had victimized $20 million plus you doing those grandparent scams. And with cooperation from the US, our police managed to nail them, and it's been a huge success.
So more likely over the wire.
I think the biggest risk right now is if the regime does actually fall apart, they do have extraordinarily skilled hackers, and those that survive are going to need to pay the bills. And so they're going to become what I've referred to as cyber Ronin potentially.
And we've seen this even when they had day jobs, they would moonlight.
We had an Iranian crew attack a children's hospital in the United States with ransomware, and they're really good at (getting) into water treatment plants. So that's something that I'm wary of. If the regime survives what's happening to it right now, it's going to need a lot of money.
And so now we're going to have another hostile threat actor desperate for cash in the way that North Korea is. And North Korea does everything it can on cyber to steal crypto, do ransomware, all kinds of things to make money for the regime. So that is another big sort of risk for Canada.
It's not so much the ideological, because let's be honest, we're not flying planes in there dropping bombs, not that our planes would actually be able to participate in this at this point.
And I, for one, am glad we're sticking this one out.
So, we're not top of the menu, but we would be top of the menu when it comes to easy targets, if and when they need to make money.
Consequences of Delay
Alex:
Right. It's that the warning has to be issued at all, right? Because we have talked about this year after year after year, as if the day is never going to come, right?
And then the geopolitical threats and the tensions around the world have been building for a long, long time. And so to hear that, you know, still here we are in 2026, and nothing has changed. Nothing has changed.
And we're so reactionary of the, well, we woulda, coulda, shoulda, right?
We're just all, the signs are there. We just never seem to actually do anything.
That is the most frustrating thing.
David:
Well, and it's, let's be honest, it's the most vulnerable Canadians that have suffered from a lack of action. It was sick folks in Newfoundland who suffered when their healthcare system down. The five hospitals in Ontario, it was our most vulnerable population that was victimized by this.
Alex:
And if we lose power in the dead of winter, it'll be those who don't have generators and wood sows who are potentially going to freeze.”
Lets go back to 2003, covering that blackout, and I think a lot of people got lulled into this false sense of that was really fun. I'm like, yeah, well, that's because it was the summer, right? And everyone turned it into a party.
Would everyone be really excited if it was, I don't know, two weeks ago?
David:
Or we have a cyber-induced version of Walkerton.
Yes.
We seem to have forgotten what happens when we mess with municipal water systems.
Right. And so, you know, and I'll be honest, I mean, I've testified before Parliament three times on this issue of critical infrastructure, and I used extraordinarily plain language with parliamentarians, and I had one parliamentarian stare me in the eye and say, Parliament moves to the speed of parliament.
And I said, cyber moves to the speed of digital.
Alex: Yeah.
David: And Canadians need you to move faster. And what's so frustrating is we almost had this law passed, but because the Trudeau government fell and there was a typo, the legislation died. Like, I mean, it's almost it almost fit a British political comedy if it wasn't so tragic.”
Alex: Yes.
David: And I love British comedy. I don't want to live it.
Alex: Right. Like, I don't want to live it. And that's what we're living where when we hear build Canada, save Canada, all these things, like we're going to go on war footing.
It's words because we're not at all serious about it. I mean, to your example on water infrastructure, I was there in Walkerton when the manure went in the water and I'm knocking on doors and people are either dying or they're all sick. And we've still had children from those days who still will always have liver damage.
Right. Like it was so easy to make mistakes back then. And if they haven't changed anything, I mean, it is so easy to do now and the ramifications would be enormous.
And yet we just kind of don't take it seriously.
Demand for Action
David: No, and it's human nature, right? And let's remember that Canada has been the couch surfer of national security of the Western world for the last 40 years. And we're not used to this.
Alex: So I- What, being called on it?”
No, not me. What, we're not perfect? Because we sure think we are.
David:
Yeah, no, and you know what? I want to give full credit to the prime minister for the speech he gave in Davos about calling out the lie that the world was living of the rules-based international order.
The problem is, back here at home, we've lived the lie that we were acting like a real country when it came to our national security, and we need to have that speech, prime minister, here, at home, to the home audience.
Alex:
We don't want the speech.
We want the action.
Right. He gave the speech, and now live up to the words. Right?
We get the speech, just we don't get the action. That's the issue. And to your point, it's always the people who can't afford it the most, who end up paying the price.
All right. Well, I appreciate talking to you again. I know we'll talk again, and probably about the same thing.
David:
You're very welcome. Take care.
Alex:
Yeah, you as well. All right. There you go.
David Shipley with Beauceron.
And can't say we haven't been warned because we have.