Australian businesses find themselves under mounting financial stress as they grapple with the urgent need to invest in cybersecurity and protection measures. The growing complexity and frequency of cyberattacks have left companies across the nation struggling to balance their budgets while safeguarding sensitive data and customer trust.
At the core of almost every business, the financial consequences of falling victim to cyberattacks can be devastating. Cybercriminals are becoming increasingly sophisticated, and the potential for data breaches, ransomware attacks, and other malicious activities continues to rise.
Australian businesses are keenly aware of these risks but are facing daunting challenges when it comes to allocating resources for robust cybersecurity measures.
Meanwhile, Microsoft has pledged to invest an additional $5bn in Australia over the next two years to expand hyperscale cloud computing capacity while collaborating with the Australian Signals Directorate (ASD) to boost domestic protection from cyber threats.
The investment comes at a time when Australian businesses are under financial stress due to cybersecurity investments required to keep their businesses protected.
Experts advise businesses to consider a strategic approach to cybersecurity investment, focusing on identifying critical assets, risk management, and compliance with industry regulations.
By prioritising their most valuable digital assets and adopting proactive cybersecurity measures, businesses can optimise their spending while enhancing protection against cyber threats.
The Australian government has been working on a new cybersecurity strategy covering the period to 2030, which is expected to be released within weeks. The new strategy is aimed at enhancing the country’s joint capability to identify, prevent, and respond to cyber threats, which are growing in both frequency and severity.
According to PwC’s Federal Budget Insights 2021-22 report, 40% of Australian businesses plan to increase their cybersecurity headcount this year. The demand for cybersecurity resources is unprecedented and has also placed many businesses under financial stress.
In addition, Statista reports that the cybersecurity industry in Australia was expected to reach $4.5 billion USD in 2022, almost one billion dollars more than in 20192. The report also states that many companies are allocating more budget for cybersecurity spending each year.
Furthermore, according to PwC’s Federal Budget Insights 2021-22 report, 40% of Australian businesses plan to increase their cybersecurity headcount this year3. The demand for cybersecurity resources is unprecedented and has put many businesses under financial stress.
The Australian Signals Directorate’s Australian Cyber Security Centre (ASD’s ACSC) Annual Cyber Threat Report for July 2021 to June 2022, there were 76,000 reports of cybercrime in Australia during this period, marking an increase of 13% from the previous year1.
The report highlights that cybercrime and cybersecurity incidents reported to the ACSC may not reflect all cyber threats and trends in Australia’s cybersecurity environment1.
In addition, a report by Marsh states that on average, there is a cyber-attack every 10 minutes in Australia, with 43% of these attacks targeting SMEs.
The report also pointed out the top five cyber threats facing Australian businesses during this period were phishing attacks (39% of incidents), ransomware (17% of incidents), malware (16% of incidents), business email compromise (10% of incidents), and denial-of-service attacks (7% of incidents)
Top 5 Cyber threats facing Australian businesses
- Phishing attacks accounted for 39% of reported incidents.
- Ransomware was responsible for 17% of the incidents.
- Malware incidents comprised 16% of the total.
- Cyber espionage incidents constituted 8% of the reported cases.
- Incidents related to vulnerabilities in web applications made up 6% of the total.
According to the Australian Bureau of Statistics, more than two in 10 businesses (22%) experienced a cyber security attack during the 2021-22 financial year, compared to almost one in 10 (8%) in 2019-20
The Australian Cyber Security Centre (ACSC) has been instrumental in providing resources and guidance to help businesses bolster their cybersecurity defenses. It emphasised the importance of risk assessments and developing tailored security strategies to make the most of available resources
As cyber threats continue to escalate, Australian businesses will need to find a balance between their financial constraints and the urgent necessity of investing in cybersecurity and protection.
The collaboration between the public and private sectors, along with a strategic approach to cybersecurity investments, will be essential in safeguarding Australian businesses and their customers from the ever-present digital threats.
Microsoft’s investment in Australia’s cybersecurity infrastructure is expected to boost the country’s ability to identify and prevent cyber threats. The collaboration between Microsoft and ASD will enhance joint capability and lead to better protection for Australian residents, businesses, and government entities.
