Australian businesses face ‘irreparable brand damage’ due to data breach

Data breaches pose a huge threat to Australian businesses today and can cause “irreversible brand damage”.

Fortinet, a global leader in cybersecurity, has highlighted growing concerns about cybercriminals targeting the country’s critical infrastructure, according to a cybersecurity expert.

Critical sectors at risk

(Photo by Clint Patterson on Unsplash)

As cybercriminals come up with new ways to infiltrate Australian infrastructure, a security expert believes businesses are highly vulnerable to attacks.

Australia’s federal government has identified 11 critical sectors under the Critical Infrastructure Security Act, which was amended in 2018 to introduce more stringent regulations. These sectors include communications, data storage, financial services, water and wastewater, energy, health and medical care, higher education and research, food and groceries, transportation, space technology and defense.

Under the revised rules, companies in these sectors must file annual reports to notify the federal government of any attempts to gain access to their networks.

Related Article: Unnamed Australian healthcare provider hacked: National cybersecurity coordinator confirms

Cybersecurity incidents are becoming more frequent

Fortinet’s Director of Operational Technology and Critical Infrastructure, Michael Murphy, recently spoke on Sky News Business Weekend, revealing the scale of cyber threats.

In the 2022-2023 financial year, 188 cybersecurity incidents were reported in critical sectors, highlighting ongoing threats to national networks such as water and energy supplies.

The Australian Bureau of Statistics reported that in the 2021-22 financial year, 34 per cent of businesses experienced resource losses related to managing cybersecurity attacks. Additionally, 22 per cent of Australian businesses suffered a cyber attack during this period, more than double the previous year.

Worse still, even small businesses are now vulnerable to all forms of cybercrime.

Effects of cyber attacks

Murphy noted that 188 incidents were reported among entities subject to reporting obligations. Additionally, non-critical infrastructure entities also reported 142 incidents, underscoring the widespread nature of the threat.

Cybersecurity expert Murphy explained that hackers are motivated by various factors beyond financial gain, including the desire to gain control. He highlighted the serious consequences of cyber attacks, where hackers can disrupt systems and cause significant downtime, leading to loss of revenue and irreparable damage to the brand.

Challenges in critical infrastructure

Murphy noted that critical infrastructure sectors face unique challenges compared to IT enterprises. In many cases, the luxury of quickly restoring systems is not available and recovery can take a long time. This extended downtime not only affects revenues, but also damages the reputation and credibility of affected organizations.

“We have observed that in many cases motivating factors come into play. Historically, this was based on financial speculation. We have seen an increase in social and political influence, and more importantly, some hackers and syndicates simply want to increase their credibility,” he said.

As cyber threats continue to evolve, it is crucial for enterprises, especially those operating in critical infrastructure sectors, to strengthen their cybersecurity measures. Annual reporting and compliance with federal regulations are important steps, but proactive strategies and advanced security technologies are required to effectively mitigate risk.

The threat of data breaches and cyber attacks to Australian businesses, particularly those operating in critical infrastructure sectors, is real and growing. Given the risk of irreparable brand damage and financial loss, companies must prioritize cybersecurity.

In other news, Tech Times reported that Russia may have hacked into Ukraine’s critical infrastructure. This prompted the International Criminal Court (ICC) to open an investigation into potential war crimes by the Kremlin.

Also Read: Massive Cyber Attack Destroyed Over 600,000 Routers in Midwestern US: Report