Canada is becoming increasingly attractive to foreign companies and governments that are looking to establish a virtual base from which to launch cyber attacks.
A Websense report indicates that, in 2012, Canada became the third most popular country (behind the United States and the Netherlands) for cyber criminals to host advanced malware for corporate espionage.
Canadian sites hosting malware have increased by 25 percent in the past year, making Canada the world's tenth largest source of malicious malware. The number of command-and-control servers increased by 83 percent.
The report cites three factors for this growth: Canada's reputation for strong digital infrastructure, its failure to move quickly to shut down malicious sites, and the lax attitude of Canadian ISPs.