Understanding the cyber threat in an age of disruption

The Annual Cyber Threat Report (ACTR) is ASD’s annual flagship publication on the key cyber threats impacting Australia, how ASD is responding to those threats, and ways Australian businesses and individuals can protect themselves.

A changing threat environment

Over the past year, frontier AI technologies have fundamentally reshaped the cyber security landscape. While AI presents significant opportunities, it is also enabling malicious cyber actors to identify vulnerabilities and conduct attacks faster, at greater scale and with greater precision than ever before.

This trend will only accelerate. As a result, organisations must strengthen basic cyber hygiene and prioritise system security to address the increased rate of AI-enabled vulnerability discovery.

All network owners face elevated threat levels, and the likelihood of compromise has increased. Organisations must be prepared to prevent, manage and respond to cyber incidents.

Many of the systems Australians rely on every day are built on legacy technology that was not designed for today’s threat environment. Accelerating technology modernisation and improving cyber security foundations will help ensure these systems remain secure, resilient and fit for the future.

ASD’s Annual Cyber Threat Report demonstrates the scale and complexity of the threat environment. In 2025–26, ASD’s Australian Cyber Security Centre (ASD's ACSC) responded to more than 1,500 cyber security incidents, a 36% increase over five years. ASD also issued more than 4,400 notifications about potentially malicious cyber activity, up 80% from the previous year.

State-sponsored cyber actors continue to target Australian organisations to access sensitive information and position themselves within networks for future intelligence collection or disruptive activities. As global security challenges persist, these actors are increasingly expected to leverage AI to enhance the speed, scale and effectiveness of their operations.

Cybercriminals are also exploiting AI to make scams, fraud and network intrusions more convincing, targeted and scalable. During 2025–26, the ACSC received over 82,000 cybercrime reports, averaging one every six minutes. The self-reported cost of cybercrime for medium-sized businesses rose sharply to $141,300, an increase of 45%.

Building resilience through action

In a threat environment transformed by AI, building resilience is essential to protecting critical systems and maintaining the delivery of services that Australians rely on every day. While technologies and tactics will evolve, cyber resilience will remain Australia’s strongest defence against an increasingly complex threat environment. From large organisations to individuals, there are practical steps to take to reduce vulnerabilities, strengthen defences and prepare for incidents before they occur.

For organisations and critical infrastructure operators, strong cyber resilience starts with the fundamentals. System security must be prioritised over system availability in order to deal with increased vulnerability discovery by AI models. Priorities include reducing reliance on legacy technology, implementing effective event logging, strengthening supply chain security and adopting secure-by-design products and services, preparing for the transition to post-quantum cryptography and considering the growing risks associated with AI-enabled threats.

Malicious actors are using AI to launch sophisticated attacks, more frequently. But cyber defenders can also use AI tools to improve threat detection, identify new attack vectors and strengthen network defences. Each organisation is different, it is about choosing the right AI capability or model that's right for the job you want it to do. In time, AI tools will be able to automate defences to stay ahead of AI-enabled attackers.

For individuals, some of the most effective cyber security measures remain simple. Keeping devices up to date, backing up important information, enabling multi-factor authentication, and using long, unique passwords remain some of the most effective ways to stay secure online. There are other technologies available these days as well, such as passkeys, which offer an easier way to authenticate without a password.

While technology and threats will continue to evolve, the importance of strong cyber security foundations remains constant. Taking action today to strengthen cyber resilience will help reduce opportunities for malicious actors and better prepare Australia for increasingly sophisticated AI-enabled threats.

Stronger together

Partnerships remain critical in this threat environment. ASD’s strong collaboration across government, industry and international partners better enables us to understand emerging threats, share intelligence and coordinate responses. Early reporting of cyber incidents helps identify broader patterns and allows organisations to strengthen their defences before threats spread further.

Australia’s security and prosperity depend on government, industry and the community working together to lift cyber security standards. In a threat environment transformed by AI, collective action remains our strongest defence. We all have a role to play in protecting Australia’s vital digital networks.

Further information

• Read the Annual Cyber Threat Report 2025-26
• Join the ASD Cyber Security Partnership Program
• Learn more about Cyber Action Year
• Guidance for individuals and families
• Artificial intelligence