ASD Annual Cyber Threat Report 2023-24: Key Takeaways for CIOs and Business Leaders

Hands typing at a a laptop keyboard. Overlaid with a digital graphic of a bar graph.

In November 2024, the Australian Signals Directorate’s (ASD) published its Annual Cyber Threat Report 2023-24.

The report paints a stark picture of the evolving cyber threat landscape.

36,700+ calls to the Australian Cyber Security Hotline and more than 1,100 incidents responded to during the reporting period – ASD’s Annual Cyber Threat Report 2023-24

The findings reveal a rise in cybercrime activity and highlight the pressing need for businesses to adopt an intelligent data strategy that prioritises secure-by-design infrastructures, embedding security at the core of their data management approach.

At Cyber Collab, we understand business leaders must address multiple compliance and financial obligations. That is why below we provide busy CIOs and business leaders some key findings and recommendations made in the ASD’s report. 

Key Trend and Threats

1. Rising Cybercrime

    • Business email compromise (BEC) and fraud rank among the top threats for businesses.
    • Ransomware attacks and data theft extortion remain pervasive and costly.

2. Exploitation of Emerging Technologies

    • Cybercriminals increasingly use artificial intelligence (AI), reducing the sophistication needed to execute attacks.

3. Targeted Methods

    • Credential stuffing and password spraying are common, exploiting weak or stolen credentials.
    • Compromised accounts, malware infections and infrastructure breaches remain top incident categories.

4. Critical Infrastructure Under Siege

    • Over 11% of cyber incidents targeted critical infrastructure, threatening essential services and economic stability.

5. Global OT Cyber Risks

    • Operational technology (OT) assets face growing international threats, with vulnerabilities in edge devices and supply chains being exploited. 

6. Human Factor and AI-Enable Social Engineering

    • A case study in the ASD’s report highlighted the use of AI-generated deepfakes to execute a multimillion-dollar fraud via video phishing, demonstrating the sophisticated manipulation of trust.

Cloud Computing and the Shared Responsibility Model

Cloud computing, a model that enables network access to a shared pool of computing resources such as data storage, servers and applications, is transforming IT services. However, cloud security operates on a shared responsibility model which involves the cloud service provider, the cloud consumer and any third parties involved in delivering the solution. Organisations need to:

  • ensure that cloud services meet their security needs;
  • securely configure the cloud services they use;
  • decide which data to store in the cloud.

Despite the shared responsibility, the customer organisation ultimately bears responsibility for its security practices.

Cloud Service Models

  1. Infrastructure as a Service (IaaS): The vendor provides physical computer hardware, including processing, memory, storage and connectivity.
  2. Platform as a Service (PaaS): The vendor adds operating systems and server applications to the IaaS offering.
  3. Software as a Service (SaaS): The vendor delivers software applications such as email (e.g., Microsoft 365), using their infrastructure and platforms.

Understanding these models and responsibilities is crucial for effectively leveraging cloud computing while maintaining robust security.

Securing Artificial Intelligence

Artificial Intelligence (AI) systems are among the fastest-growing applications globally, driving activities like internet searching, satellite navigation and recommendation systems. AI is increasingly used to perform tasks traditionally handled by humans, such as sorting data, automating routine processes and enhancing business operations in areas like customer engagement, logistics, medical diagnoses and cyber security.

While AI offers significant benefits, it also carries risks that must be managed to prevent harm. To use AI securely, organisations and individuals should understand these risks and implement mitigation strategies.

AI-Specific Risks

  1. Data Poisoning: Malicious actors may alter the training data used to develop AI models, leading to incorrect decisions.
  2. Adversarial Inputs: Attackers can craft inputs or prompts to manipulate AI systems, causing them to make mistakes or generate harmful content.
  3. Privacy Concerns: AI’s ability to re-identify anonymised data raises significant privacy issues.
  4. Hallucination: AI systems may provide incorrect predictions or generate non-existent references, undermining trust in their outputs.

Secure Use of AI

For Individuals:

  • Research the reputation of AI systems.
  • Understand what information is shared with AI and how it will be used.
  • Verify the accuracy and appropriateness of AI outputs.

For Organisations:

  • Assess AI systems for risks and ensure Secure-by-Design principles.
  • Evaluate cyber supply chain risks and data protection implications.
  • Define accountability and oversight mechanisms.
  • Monitor the AI system’s access to intellectual property and its broader impact on operations.

By addressing these considerations, organisations can balance innovation with security and trust. 

Shortcomings of Traditional MFA

Non-phishing-resistant MFA methods, such as passwords, SMS, one-time passwords, security questions or push notifications are vulnerable to phishing. For example, attackers may create fake websites that prompt victims to enter their MFA credentials which are then used to access the victim’s real accounts.

Advantages of Phishing-Resistant MFA

Phishing-resistant MFA enhances security by requiring:

  1. Private Key Authentication: Secured within a hardware device rather than software alternatives.
  2. Proof of Intent: Authentication involves deliberate action by the user.

The two recognised phishing-resistant authentication methods are:

  • Personal Identity Verification Smart Cards
  • Security Keys Supporting FIDO2/WebAuthn Standards

While implementing phishing-resistant MFA is encouraged, any MFA is better than relying solely on passwords. Organisations and individuals should prioritise this stronger method to better protect against evolving phishing tactics.

ASD’s Recommendations for Resilience

1. Adopt the Essential Eight:

Implement ASD’s top-practice cyber security strategies to protect ICT systems.

2. Update ICT Systems:

Replace outdated technology with Secure-by-Design products.

3. Prioritise Event Logging:

Centralised and high-quality event logging can significantly enhance threat detection and response.

4. Harden Edge Devices:

Secure routers and other edge devices with updates, strong credentials and limited access.

5. OT Cyber Security Principles:

Apply the six core principles to safeguard critical systems, focusing on segmentation, data protection and supply chain security.

6. Educate Teams

Build a strong cyber security culture and provide training to empower employees as the first line of defence.

How Cyber Collab Can Help

At Cyber Collab, we specialise in tailoring cyber security strategies to your organisation’s unique needs. Here is how we can support your business:

  • Cyber Security Health Checks: Comprehensive assessments to identify vulnerabilities and means to strengthen your cyber posture so you can stay ahead of AI-enabled attacks with proactive strategies and robust defence mechanisms.
  • Penetration Testing: Test your system and OT as if under a real cyber attack to determine any vulnerabilities and receive recommendations to further improve information security.
  • Incident Response Services: Immediate and effective responses to mitigate the impact of cyber incidents.
  • Workplace Security Training: Equip your teams with the skills to recognise and prevent cyber threats via bespoke workshops.
  • Phishing-Resistant MFA Implementation: Upgrade your authentication methods to safeguard against phishing attempts.

We work alongside internal IT teams and managed service providers (MSPs) to verify the people, processes and controls an organisation has in place. Our expert and comprehensive vulnerability assessments for organisations help align all stakeholders to their compliance requirements, risk threshold, vulnerabilities and professional responsibilities.

Contact Cyber Collab today for a complimentary 20 minute initial appraisal on how to fortify your defences and navigate the complexities of modern cyber security.