Australia Warns AI Cyber Threat Reaches Unprecedented Scale as Incidents Surge 80%

AI-Enabled Attackers Drive Unprecedented Surge in Cybersecurity Incidents

The Australian Signals Directorate (ASD) has issued an urgent warning about the escalating AI cyber threat landscape, revealing a dramatic 80% increase in cybersecurity incidents over the past year. The agency notified external entities—including businesses, governments, and critical infrastructure—of more than 4,400 potential malicious cyber incidents in 2025-26, up from previous levels1

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. In its annual cyber threat report released Tuesday, ASD also responded to 1,500 cybersecurity incidents directly, marking a 20% increase from the previous year1

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ASD Director General Abigail Bradshaw emphasized the transformative impact of artificial intelligence on the threat environment, stating that AI has become "the defining force in the cyber threat landscape over the past year, allowing malicious actors to find vulnerabilities faster and exploit them at unprecedented scale, speed and sophistication"2

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. The agency warns that hostile state actors, criminals, and hackers are deploying AI in cyberattacks to gather intelligence, disrupt critical infrastructure, and steal money at greater scale than ever before1

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Hostile State Actors Target Critical Infrastructure and Private Networks

Government and private networks in Australia experienced "persistent" breach attempts from state-based actors throughout the year, according to the report. The Australian Signals Directorate claims these hostile state actors "in the Indo-Pacific" could be launching attacks to prepare for potential future conflicts, including "future intelligence collection or disruption activities"1

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. The report specifically documented that hackers linked to China, Russia, and North Korea had targeted Australia or its allies in recent times2

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Defence Minister Richard Marles addressed the gravity of the situation, telling reporters that "AI is here and it's real. People need to engage. There's no turning the clock back in relation to that. Malicious actors are using AI to find vulnerabilities in systems"2

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. The minister emphasized that cybersecurity is now positioning Australia to respond to evolving threats and opportunities presented by emerging technologies1

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Legacy Systems and PHP Vulnerabilities Expose Critical Weaknesses

Abigail Bradshaw identified legacy systems—outdated technology or devices no longer supported with new updates by their creators—as among the biggest risks and most attractive targets for hackers1

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. This warning comes as newly discovered vulnerabilities in PHP, a programming language that underpins most websites, triggered a rush by governments and businesses to fix the problem last week1

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. The vulnerability was found using a powerful model from OpenAI, highlighting both the benefits and risks of advanced AI tools2

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The agency stressed that "all network owners are facing elevated threat levels," declaring cybersecurity a "core business risk and leadership responsibility" for all organizations, no longer only a technical concern1

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. Richard Marles urged Australians to update their computers and engage in system hardening to protect against these evolving threats2

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AI-Driven Cybersecurity Defenses Essential to Combat AI-Enabled Threats

The Australian Signals Directorate is calling for organizations to fight fire with fire by deploying AI-driven cybersecurity defenses against AI-enabled attackers. "We need AI tools to help automate our defences to stay ahead of AI-enabled attackers," Bradshaw stated, adding that "Australia must accelerate the modernisation of its technology and cybersecurity foundations to protect the systems we rely on every day"1

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Bradshaw has previously discussed ASD having access to Anthropic's Mythos model, a powerful AI tool which the frontier lab said it couldn't release publicly because it could identify unknown flaws in IT systems1

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. Australian government agencies believe that having access to such frontier models and collaborating with leading AI labs is critical to bolstering cybersecurity. The report even noted that ASD used some AI tools to compile its own annual cyber threat report2

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Prepare for Service Disruptions as Security Takes Priority Over Availability

In a significant shift in approach, Australians are being warned to prepare for more basic and important online services to go offline unexpectedly. The agency urges that "system security must be prioritised over system availability"1

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. Both Bradshaw and Marles said organizations should prioritize the security of their systems over keeping them online, which could mean more services are forced to go offline while they are secured1

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The report warned that "in recent weeks, new threats have emerged from the unintended actions of AI agents and model testing," reflecting mounting global worries about the power of advanced AI tools following a string of hacking incidents involving models from leading developers such as OpenAI and Anthropic2

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. ASD urged organizations to update their systems, seek help from the agency, and report suspicious incidents immediately. "In a threat environment transformed by AI, collective action is our strongest defence," Bradshaw concluded1

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. The increase in cybersecurity incidents signals that organizations must treat data theft and vulnerabilities as immediate priorities requiring executive-level attention and investment in modern defensive capabilities.