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Australia’s cyber threat report warns of AI-enabled attacks

27 OCTOBER 2026·2 MIN READ·4 SOURCES

Australia’s ASD released its seventh Annual Cyber Threat Report on 27 October 2026, examining the country’s cyber threat environment and the effects of rapidly advancing AI. The agency says AI is helping malicious actors work at greater scale, speed and sophistication.

Australia’s cyber threat report warns of AI-enabled attacks

Key takeaways · 5

  • 01

    The ASD’s ACSC released its seventh Annual Cyber Threat Report on 27 October 2026.

  • 02

    The ACSC received more than 82,000 cybercrime reports in 2025–26, averaging one every six minutes.

  • 03

    The ASD issued more than 4,400 notifications about potentially malicious activity, almost 80% more than the previous year.

  • 04

    The ASD advises organisations to use AI to improve resilience while preparing for malicious uses of the technology.

  • 05

    Individuals can reduce their chance of becoming a cybercrime victim by reviewing privacy settings and enabling multi-factor authentication or passkeys.

What the report says about AI

The report examines Australia’s cyber threat environment, the effects of rapidly advancing AI and ways Australians can protect themselves.[2] The ASD says malicious cyber actors are using AI to operate with greater scale, speed and sophistication.[1] It also says AI is making cyberattacks, scams and phishing attempts more efficient, effective and convincing.[1] ASD Director-General Abigail Bradshaw said frontier AI models had redefined the threat facing Australia, and that each capability increase is likely to bring more disruption.[3] The ASD called the release of frontier AI the defining event of the past year, citing models such as Anthropic’s Mythos.[3]

Reports, incidents and notifications

During the 2025–26 financial year, the ASD’s ACSC received more than 82,000 cybercrime reports, an average of one every six minutes.[1] The notification total was almost 80% higher than in the previous year.[1] Separately, the ASD responded to 139 ransomware incidents.[4] These figures describe different kinds of activity, so they should not be treated as interchangeable measures of the same workload.[1][4]

Examples and reported costs

The ASD said Amadey malware steals personal data or login details and sends them to criminal groups for sale on the dark web.[3] It found Amadey hidden in a free, illegitimate version of Photoshop, and said the network had access to 180,000 computers worldwide, including computers in Australia.[3] In another reported operation, the ASD broke in and destroyed data before it could be sold; the agency estimated that about 4.8 million files stolen from Australians, and hundreds of thousands of files from other victims worldwide, were destroyed.[3] The average self-reported cost of cyberattacks to businesses rose 16% to $93,500, while the average for medium-sized businesses rose 45% to $141,300.[4]

Defensive steps in the report

The ASD says the report offers guidance for individuals, businesses and critical-infrastructure operators seeking to strengthen their defences.[1] It advises organisations to use AI to improve resilience while preparing to counter adversaries’ malicious uses of the technology.[2] For individuals, the agency says reviewing privacy settings and enabling multi-factor authentication or passkeys can reduce the chance of becoming a cybercrime victim.[2] The report’s guidance therefore spans both organisational planning and basic personal account protections.[1][2] The reported scale of activity gives teams a reason to review their own preparedness rather than assume the threat is limited to one type of organisation.[1]

For security and technology leaders, the report combines AI-related threat warnings with measures of reported cybercrime, incidents and notifications. It also points to practical work: strengthening defences, using AI to improve resilience and preparing for malicious uses of the technology.

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How this developed

  1. 27 October 2026

    Australia’s cyber threat report warns of AI-enabled attacks

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