Australia’s critical infrastructure is under mounting pressure from foreign adversaries, with cyber espionage and sabotage reaching unprecedented levels. According to Australian intelligence officials, authoritarian regimes are leveraging artificial intelligence (AI) and sophisticated cyber tactics to target military, government, and economic sectors.
On February 19, Mike Burgess, Director-General of the Australian Security Intelligence Organisation (ASIO), delivered an annual threat assessment highlighting a concerning increase in foreign cyber threats. These threats, he warned, include AI-powered disinformation campaigns, military espionage, and cyberattacks aimed at destabilizing national security and economic stability.
A Shifting Threat Landscape
Burgess’ latest assessment—the sixth since he took office in 2019—was described as his most serious and sobering address yet.
“ASIO’s report reflects an increasingly combative international relations environment, marked by growing competition between global powers. Australia finds itself in a strategically critical yet geographically vulnerable position,” stated Casey Ellis, founder of Bugcrowd.
The Australian intelligence community has observed an alarming trend: cyberattacks against critical infrastructure have increased, accounting for 11% of all cybersecurity incidents over the past year. The tactics used by adversaries closely resemble those employed against the United States, suggesting a coordinated effort to undermine Western allies.
Cyber Sabotage and AI-Driven Threats
Burgess identified several key areas of concern regarding cyber threats to Australia:
- Artificial Intelligence and Disinformation: AI-driven disinformation campaigns and deepfake technologies are being used to spread false narratives, manipulate public opinion, and erode trust in government institutions.
- Military Espionage: Australian defense personnel have been targeted with embedded surveillance devices disguised as gifts from foreign agents, highlighting the lengths adversaries will go to gather intelligence.
- Targeting of AUKUS Partnership: The trilateral security alliance between Australia, the UK, and the US (AUKUS) is a prime target for intelligence collection by both hostile and even ostensibly friendly nations. Espionage efforts aim to compromise sensitive defense capabilities and sow discord among allies.
Burgess warned that AI-powered cyberattacks will increasingly exploit vast amounts of personal and institutional data, making it easier for foreign intelligence services to carry out surveillance, espionage, and sabotage.
Geopolitical Rivalries Fuel Cyber Espionage
Australia’s geopolitical landscape further exacerbates its cybersecurity challenges. With growing competition between Australia and China over influence in Pacific Island nations—such as Papua New Guinea, the Solomon Islands, and Kiribati—cyber warfare is becoming an extension of traditional geopolitical maneuvering.
David Rajkovic, Regional VP for Australia and New Zealand at Rubrik, explained, “Geopolitical rivalries often spill over into cyber espionage. As Australia and China compete for influence, cyber operations targeting government agencies, defense entities, and businesses are becoming increasingly common.”
Beyond security alliances, Australia’s economic ties make it a valuable target. China remains Australia’s largest trading partner, with iron ore, petroleum, and other minerals forming the backbone of their trade relationship. While disrupting this infrastructure outright may not be in China’s best interest, intelligence gathering and cyber espionage targeting Australian industries remain a significant concern.
Foreign Adversaries Intensify Attacks on Critical Infrastructure
Authoritarian regimes have become increasingly bold in their cyber operations, with infrastructure sabotage becoming a key element of hybrid warfare.
Burgess cited Russia’s actions in Ukraine as an example of how cyberattacks on critical infrastructure can be used to inflict widespread disruption and chaos. He noted that similar tactics are being deployed against Australia, with hostile cyber units actively attempting to infiltrate the nation’s essential services.
“The most significant cybersecurity threat facing Australia is the disruption of critical infrastructure,” said Rajkovic. “Recent cyberattacks, such as the Medibank breach attributed to Russian hacker Aleksandr Ermakov and the activities of China’s APT40 group, demonstrate the clear and present danger posed by state-sponsored cybercriminals.”
Burgess revealed that ASIO and its international partners recently uncovered a foreign cyber unit actively targeting critical infrastructure networks in both Australia and the United States. Working closely with U.S. intelligence agencies, ASIO successfully disrupted these operations, neutralizing cyber threats across both nations.
The Future of Cyber Warfare in Australia
While Australia is not currently at war, foreign cyber regimes are increasingly positioning themselves for future conflict by embedding cyber access points within Australian networks. Burgess emphasized that these adversaries are not merely preparing for immediate attacks but are establishing long-term footholds to exploit when geopolitical tensions escalate.
The nation’s intelligence agencies, in collaboration with global allies, are working tirelessly to counter these threats. However, as cyber warfare becomes more advanced, defending Australia’s critical infrastructure will require constant vigilance, investment in cutting-edge cybersecurity technologies, and a proactive approach to intelligence gathering.
With authoritarian regimes becoming more aggressive in their cyber operations, Australia’s resilience will be tested in the coming years. Whether through AI-driven disinformation, espionage, or direct cyber sabotage, the battle to secure Australia’s critical infrastructure is far from over.