ASIO Sounds Alarm as $12.5B Espionage Attack Exposes Stolen Aussie Defense Tech

Significant economic losses from foreign espionage are revealed by new ASIO data, which has prompted calls for increased security throughout Australia's defense industry.

As fresh data shows the financial cost of espionage, the Australian Security Intelligence Organization (ASIO) has called on defense companies to strengthen their security. According to a joint ASIO-Australian Institute of Criminology assessment called The Cost of Espionage, espionage cost the Australian economy $12.5 billion in 2023–2024. However, critics feel this estimate greatly underestimates the actual extent of the harm.

Foreign countries have acquired "an unhealthy interest" in Australia's aviation and maritime capabilities, as well as dual-use technologies arising from the defense industrial base, according to ASIO Director-General Mike Burgess.

According to Burgess, foreign governments looking to reduce their operational advantage, learn more about their tactics and readiness, and gain a better understanding of their allies' capabilities prioritize gathering intelligence from Australia's defense sector.

A recent instance involving an Australian defense contractor that created and marketed an advanced technology was highlighted by ASIO. The corporation witnessed a sharp decline in demand following a period of robust foreign sales.

A growing number of allegedly defective products were being returned by customers. However, the goods were inexpensive knockoffs rather than real ones. Later, investigators found that the company's designs had been taken by hackers a year prior.

A persistent local attendee who insisted on giving documents by USB contacted staff members at an international defense industry event, which led to the hack. The USB contained malware that allowed remote access to private files when it was plugged into a work laptop. According to ASIO, the person was most likely employed by a foreign intelligence agency, which then gave the stolen plans to a state-owned business that mass-produced knockoffs.

According to ASIO, the incident demonstrates the vulnerability of Australia's sovereign defense capabilities as well as the direct and palpable business loss inflicted by foreign espionage.

According to Burgess, Australian defense businesses need to immediately improve their security posture by creating a culture that sees vulnerabilities, comprehends the danger, and appropriately manages risks.