CRA Was Hacked: Are You 1 of 5,600 Canadians Affected?

Cybercriminals victimized 50% of the 5,600 CRA accounts through credential stuffing. Meanwhile, the BlackBerry stock is one of the cybersecurity stocks to look out for in 2020 and beyond.

| More on:

The federal government in Canada is fighting a new invisible enemy. Cybercriminals disabled several government services in early August 2020. According to the Treasury Board Secretariat, there were hacking attempts on 11,000 online government services accounts, with 5,600 originating from the Canada Revenue Agency (CRA).

The CRA is under siege from cyberattacks that forced the tax agency to suspend its online services. Credential stuffing is the modus operandi of the perpetrators. The hackers use previously stolen credentials to log into another account owned by the same victim.

Are you one of the victims of this malicious cyberattack?

Terrible timing

The CRA noticed the first signs of suspicious activities on August 7, 2020. After reporting the credential stuffing to the RCMP, the tax agency closed in portal on August 15, 2020. On August 19, 2020, the online services were restored.

It was terrible timing, but appears to be deliberate since many Canadians are accessing the CRA website to apply for benefit programs such as the Canada Emergency Response Benefit (CERB) and Canada Emergency Student Benefit (CESB). Employers are likewise accessing the portal to apply for the Canada Emergency Wage Subsidy (CEWS).

Cybersecurity stock in the radar

Cyber stocks are therefore gaining in popularity. BlackBerry (TSX:BB)(NYSE:BB), the erstwhile smartphone maker, is active in the cybersecurity space. The $3.5 billion company from Waterloo, Canada, provides intelligent security software and services to enterprises and governments worldwide.

BlackBerry is attempting to regain its lost glory in another avenue. When John Chen took over as CEO in 2013, the painful transformation began. The company decided to shift from the smartphone business to enterprise software and licensing activities.

The turnaround was slow until Q4 2019, when the software and services revenue posted a 14% growth. In the ensuing four quarters (Q1 to Q4 2020), top-line growth was 35%, 30%, 26%, and 16%. The revenue from this business segment accounted for 99% of total revenue in the most recent quarter.

At present, BlackBerry develops risk-reduction strategies, implements IT security standards, and provides defense against future cyber-attacks. However, BlackBerry is cementing its foothold in the auto market. According to John Chen, the macro headwinds in the automotive are stifling growth, although it should recover soon.

Chen also expects security, business continuity, and productivity solutions to perk up in an increasingly remote working environment. In terms of stock performance, BlackBerry investors are losing by 24.5% year to date. With growth on the horizon, analysts forecast the current price of $6.30 to climb between 80.6% and 122.2% in the next 12 months.

Course of action

The CRA rues the data breach in more than 50% of the 5,600 accounts. Victims of cyber-attacks will be receiving letters from the tax agency. Cybersecurity experts are telling users to adopt better security habits.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Christopher Liew has no position in any of the stocks mentioned. The Motley Fool recommends BlackBerry and BlackBerry.

More on Tech Stocks

A person looks at data on a screen
Tech Stocks

Building a $25,000 Tech Stock Portfolio That Could Thrive for a Decade

With strong earnings and smart growth strategies, these two tech stocks could reward patient investors handsomely over time.

Read more »

Investor reading the newspaper
Tech Stocks

3 Technology Sector Stocks That Could Help Make You a Fortune

Investing in Constellation Software stock, Descartes Systems, and another high-flying TSX tech stock could make you richer and happier

Read more »

taiwan semiconductor tsmc fabrication of semiconductor chip wafers_tsmc
Tech Stocks

Meet the Monster Stock That Continues to Crush the Market

From AI to aerospace, this TSX winner keeps surprising investors with solid growth.

Read more »

woman looks at iPhone
Tech Stocks

Shopify, Lightspeed, and WELL Health: Are They Good Buys Today?

While broader markets have rallied, Shopify, Lightspeed, and WELL Health stocks haven't followed suit, showing weaker performance.

Read more »

A robotic hand interacting with a visual AI touchscreen display.
Tech Stocks

2 Canadian Stocks That Could Turn $10,000 Into $100,000

If there are two Canadian stocks worth the investment, it has to be these two offering up decades of growth.

Read more »

coins jump into piggy bank
Tech Stocks

The Smartest Way to Invest $7,000 in Your TFSA This Year

Investing in small-cap TSX stocks such as DTOL should help TFSA holders deliver outsized gains in 2025 and beyond.

Read more »

dividends can compound over time
Tech Stocks

The Smartest Growth Stocks to Buy With $1,000 Right Now

Have $1,000 to invest for growth? These three Canadian stocks could still have a long runway to grow sales and…

Read more »

match strikes and starts a flame
Tech Stocks

2 Explosive Stocks That Could Go Parabolic

As the TSX rallies, these two explosive stocks are showing no signs of slowing down, backed by solid fundamentals and…

Read more »