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ASD Report: AI Is Speeding Up Cyber Threats as Costs Climb for Australian Businesses

Australian Cyber Security Magazine · 27 Oct 2026

Key Takeaway Assume phishing and impersonation attempts will look more convincing than before, so verify unexpected requests through a second channel and review the security of any AI tools you introduce into your business.

The Australian Signals Directorate's latest Annual Cyber Threat Report says AI is a defining force in Australia's threat environment. The Australian Cyber Security Centre received more than 82,000 cybercrime reports in the financial year, or one every six minutes. It responded to more than 1,500 incidents, up more than 20% on the previous year, and issued more than 4,400 notifications to organisations about potentially malicious activity, an increase of almost 80%.

The report warns that AI is lowering the technical barriers to cybercrime. Attackers can use it to automate reconnaissance, find vulnerabilities and build more convincing phishing and impersonation campaigns. It also notes new challenges as organisations bring AI-enabled systems and autonomous agents into business processes. In his foreword, Richard Marles pointed to the unintended behaviour of AI agents and model testing as emerging risks.

The average self-reported cost of cybercrime for businesses rose 16% to $93,500 per report. Small businesses reported average losses of $55,400, while medium-sized businesses saw a 45% increase to $141,300. Large businesses reported $148,100 on average, down 27%. Identity fraud remained the most commonly reported cybercrime, although reports fell by 18%.

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Primary sources cyber.gov.auOfficial source ↗ cyber.gov.auOfficial source ↗

Summarised by CISO AI from Australian Cyber Security Magazine, written with Claude Sonnet 5.5. We link back to every original so you can read it yourself.