The Australian Signals Directorate’s (ASD) latest Cyber Threat Report revealed a continued increase in cyber incidents, with approximately 1,500 incidents reported to the Australian Cyber Security Centre (ACSC) during the past financial year.
Almost half of these incidents affected the public sector, while one was classified at the second-highest severity level. Overall, reported cyber incidents have increased by 36% over the past five years.
The ACSC also received approximately 82,000 cybercrime reports during the financial year, equivalent to one report every six minutes.
AI increasing the speed and scale of cyberattacks
ASD Director-General Abigail Bradshaw warned that advances in AI were allowing cybercriminals to identify security weaknesses and launch attacks more quickly and effectively.
While common attack methods, including stealing login credentials and exploiting software vulnerabilities, have remained largely unchanged, AI is making it easier for criminals to carry out these activities at greater speed and scale.
The ASD identified legacy technology, particularly software that no longer receives vendor security updates, as a major vulnerability for Australian organisations.
With AI tools becoming increasingly capable of detecting and exploiting weaknesses in software, organisations may need to accept more frequent system disruptions to carry out security updates and address potential threats.
Bradshaw urged businesses and government agencies to improve their cybersecurity practices and place greater emphasis on protecting systems, even where this results in temporary service interruptions.
Medium-sized businesses face rising cybercrime costs
The report also highlighted the growing financial impact of cybercrime on Australian businesses, particularly medium-sized organisations.
The average self-reported cost of cybercrime for medium-sized businesses reached $141,300, representing a 45% increase.
The ASD suggested that larger organisations may be better equipped to manage cyber risks because they have greater access to dedicated cybersecurity expertise and senior IT leadership, resources that can be more difficult for smaller businesses to afford.
These findings highlight the importance of maintaining supported software, regularly addressing security vulnerabilities and ensuring employees understand basic cybersecurity practices.
International cooperation to address emerging AI threats
Australian cybersecurity authorities are also working with international Five Eyes partners to assess the security implications of advanced AI models.
This includes testing emerging AI systems capable of rapidly identifying and exploiting software vulnerabilities, with authorities seeking closer cooperation with AI developers to understand and prepare for potential threats.
The ASD has warned that every sector of the Australian economy faces exposure to cyberattacks, making cybersecurity preparedness an increasingly important priority for organisations of all sizes.
The latest report does not account for several more recent high-profile cybersecurity incidents, meaning the full implications of increasingly sophisticated AI-enabled attacks may become clearer in future reporting.
With cyber threats continuing to evolve, the ASD is encouraging organisations to address outdated technology, improve everyday security practices and prepare for a greater likelihood of cyber-related disruptions.
