Are Australian businesses prepared for cyber threats?

With the end of the financial year upon us, Australian businesses face heightened risks from various cyber threats, particularly tax-related scams and ransomware attacks.

Reuben Koh, Director of Security Technology & Strategy for Asia Pacific and Japan at Akamai, highlights the increased likelihood of cybercriminal activity during this period. "With the EOFY approaching, we can anticipate seeing an increase in this type of scam," Koh notes. Many people expect more correspondence from partners, banks, and the Australian Taxation Office (ATO), which often causes them to lower their guard and become more vulnerable to fraudulent activities.

Koh underscores the common occurrence of business email compromise during tax season. "Fraudsters impersonate financial executives requesting urgent, yet fake, transactions to meet tax requirements. The rush to meet accounting deadlines often leads individuals and businesses to forgo thorough verification of these requests," he says. He also points out the emergence of deep fake videos, wherein scammers use generative artificial intelligence tools to create fraudulent video conference calls, mimicking an executive's voice and appearance.

Beyond technological defenses, Koh stresses the importance of human vigilance. "Cyber defences can only go so far," he states, emphasizing the need for well-trained staff who can handle potential scams and verify suspicious activities. When faced with dubious payment requests, employees should be encouraged to double-check their validity by contacting the supposed requester directly.

Koh also recommends organisations to activate their cyber incident response plans if a breach occurs. This involves isolating impacted assets and assessing the scope of the data breach. Implementing a Zero Trust security approach, which includes key technologies like micro-segmentation, can help mitigate the impact of cyber attacks by isolating and containing breached systems.

Meanwhile, the Harry Perkins Institute of Medical Research, a leading medical centre in Perth, recently fell victim to a significant cyberattack. The Medusa ransomware gang has claimed responsibility, asserting that they have stolen over four terabytes of internal CCTV footage and demanding a ransom of USD $500,000. Satnam Narang, Senior Staff Research Engineer at Tenable, explains that the Medusa ransomware, operational since 2022, employs affiliates who attack public-facing systems with vulnerabilities.

"Ransomware groups like Medusa utilise tried and true techniques, including exploitation of vulnerabilities and social engineering," Narang comments. He urges organisations to adopt multifactor authentication and maintain basic cyber hygiene to prevent such attacks. Nevertheless, determined attackers often find ways to breach even well-defended systems.

In another development, a report by cyber AI company Darktrace reveals that Australian organisations are inadequately equipped to handle AI-powered cyber threats. According to Tony Jarvis, VP of Enterprise Security, Asia Pacific and Japan at Darktrace, 79% of organisations are not prepared to tackle these evolving threats. Additionally, 84% of Australian security stakeholders report being significantly impacted by AI-driven cyber-attacks.

"Cyber-attacks increasingly involve AI, and more than three-quarters of cyber professionals have already encountered them," Jarvis notes, expressing concern over the lack of tools available to counter these threats. He advocates for the use of AI in cybersecurity, as it can identify unusual behaviour within a network and detect attacks that employ AI to evade traditional security measures.

Jarvis also comments on the narrow focus of Australian organisations regarding AI applications. "It is concerning that few organisations are looking beyond GenAI for their applications and computing environments. AI can free employees from monotonous tasks, allowing them to focus on strategic impact," he says, urging organisations to consider the broader potential of AI in transforming business processes and enhancing cybersecurity measures.

As the end of the financial year approaches, businesses are advised to bolster their cyber defences and remain vigilant to stave off potential scams and attacks. Taking the necessary precautions and fostering a strong security posture will be essential in navigating this risky period.