Australian businesses are contending with a marked increase in ransomware attacks, with artificial intelligence now playing a more prominent role in cybercrime. Recent research from Opentext Cybersecurity reveals that 40% of local organisations experienced at least one ransomware incident in the past year, and nearly half of those were targeted multiple times.
The trend is consistent with broader findings across the region. A worldwide survey conducted for Arctic Wolf indicated that 85% of organisations across Australia and New Zealand reported experiencing at least one cyber incident over the past year, a higher rate than the global average of 76%.
The Opentext Cybersecurity data also shows that one-third of those hit by ransomware opted to pay the demanded ransom, with 41% of payments exceeding US$250,000. However, payment did not guarantee full data restoration, highlighting the persistent operational and reputational risks for businesses.
These findings are echoed in research from Arctic Wolf, which found that businesses in Australia and New Zealand were even more likely to pay ransoms following an attack, with almost 75% acknowledging they had made payments to avoid data leaks. Among these, 91% engaged third-party negotiators, but fewer than half were able to secure a reduction in the ransom amount.
According to Opentext Cybersecurity, the integration of generative AI tools into Australian workplaces is accelerating, with 86% of surveyed companies permitting their use. However, only about half have formal policies to govern employee interaction with these technologies. According to the research, 56% of respondents observed an increase in phishing or ransomware attempts linked to AI, and 44% reported incidents involving deepfake-style impersonations.
Concerns about data leakage remain at the forefront, followed by the risk of AI-enabled attacks and impersonation scams. The growing reliance on AI is creating new challenges for security teams, who must now balance the benefits of innovation with the need for robust risk management.
Muhi Majzoub, executive vice president of security products at OpenText, stated that while organisations have made notable advances in their security frameworks, ongoing vigilance remains necessary. “AI fuels productivity while also heightening risk through insufficient governance and its expanding use in attacks. Managing information securely and intelligently is essential to building resilience in organisations of any size,” Majzoub said, as reported by IT Brief.
Supply chain vulnerabilities are also a concern. Nearly 25% of organisations in Australia experienced a ransomware incident that originated from a software vendor, although 46% reported no such incidents in the past year – a figure below the global average. To address these risks, 80% of respondents now assess the cybersecurity of their software suppliers, and 84% have implemented structured patch management programs.
The increasing sophistication of ransomware attacks has prompted boards and executive teams to prioritise cybersecurity. Sixty-nine per cent (69%) of respondents indicated that ransomware is now considered a top-three business risk at the executive level. Demand for evidence of ransomware preparedness is also rising, with 64% of organisations having been asked about their readiness by customers or partners in the past year.
Looking ahead, companies are planning to invest in cloud security (59%), user training (52%), and network protection (51%) in 2026. Security awareness training is now routine, with only a small minority (4%) reporting no such programs.
In related news, the frequency of data breaches is enabling more targeted scam campaigns, according to Western Australia’s Consumer Protection. Scammers are leveraging stolen personal details to create convincing messages that are harder to detect. WA ScamNet reports that losses from hacking scams have surpassed $1.1 million this year, with phishing scams in October alone resulting in over $323,000 in losses.
Recent figures from the Office of the Australian Information Commissioner (OAIC) indicate that the healthcare industry was responsible for 18% of all data breach notifications during the first half of 2025, with financial services making up 14%. The OAIC also reported that 59% of breaches were the result of malicious or criminal activity, while human error accounted for 37% – a rise compared to the previous reporting period. The data shows that, on average, more than 10,000 individuals are affected by each breach.
Commissioner for Consumer Protection Trish Blake said: “Scammers no longer needed to cast a wide net to catch victims – they’re tailoring scam messages to individuals with disturbingly accurate detail.” Blake advised consumers to update passwords, enable two-factor authentication, and use government services to block the use of driver’s licences for identity verification. She also urged businesses to strengthen cybersecurity measures, train staff, and respond quickly to breaches.
For insurance professionals, the evolving cyber threat landscape highlights the need for comprehensive risk management strategies. The increase in AI-driven attacks and data breaches is expected to influence underwriting, claims handling, and advisory services. Insurers are encouraged to review their internal cyber resilience and support clients in strengthening their own defences.
