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Cyber Incidents Surge as AI Drives Threats

The Australian Signals Directorate's annual threat report shows a sharp rise in cyber incident responses and malicious activity notifications over the past year.

Updated on Nov. 10, 2026 in Cybersecurity

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Australia's Cyber Security Centre responded to more than 1,500 cyber incidents this past year, a rise of over 20 percent, as artificial intelligence sped up attacks. AI Illustration. Upload story photo >

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The Australian Cyber Security Centre responded to more than 1,500 cyber incidents, a rise of more than 20 percent over the previous year. It also issued more than 4,400 notifications of potential malicious activity, up almost 80 percent.

Why it matters

The report identifies artificial intelligence as the defining force in cyber threats over the past year, allowing malicious actors to find vulnerabilities faster and exploit them at greater scale. The findings point to growing pressure on organisations across Australia to strengthen their defences.

Incident responses rose more than 20 percent and malicious activity notifications rose almost 80 percent over the previous year. The average self-reported cost of an incident to medium-size businesses rose 45 percent to $141,300, while large businesses reported a 27 percent fall in average cost.

The players

Australian Signals Directorate

The Australian Signals Directorate is the Australian Government intelligence agency responsible for signals intelligence and cyber security, and publishes the annual threat report.

Australian Cyber Security Centre

The Australian Cyber Security Centre is the national agency that coordinates cyber security response, incident management and threat notifications across Australia.

The details

Attackers are often logging in using compromised credentials, exploiting known vulnerabilities or targeting edge devices. AI allows malicious actors to find vulnerabilities faster and exploit them at scale, speed and sophistication.

Timeline

  1. Over the past year, AI became the defining force in cyber threats.

  2. Next year, attention is expected to focus on cyber risks for medium-size businesses.

Threat Landscape

The annual threat reporting from the Australian Cyber Security Centre shows incident volumes climbing alongside increasingly capable attacks. This year's report places artificial intelligence at the centre of that shift, marking a change in how threats are being developed and delivered.

Medium-size businesses reported average incident costs rising 45 percent to $141,300, making basic protections against compromised credentials and unpatched vulnerabilities a practical priority. Organisations should review how they secure logins and edge devices.

The takeaway

Strong credential hygiene and timely patching remain the most practical defences as attackers use AI to exploit weaknesses faster. Businesses of all sizes should treat these basics as a priority rather than an afterthought.

What happens next

Attention is expected to focus on cyber risks for medium-size businesses next year.

Further reading

For broader context on defending against these attacks, explore the latest Cybersecurity coverage.

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Do you think local businesses are doing enough to protect against cyber attacks?