Australia's top spy chief has issued a stark warning that foreign spies are aggressively targeting the nation's corporate and defence sectors, with an authoritarian regime making multiple attempts to compromise critical infrastructure including the water supply.
Sabotage as a Tool of Coercion
Speaking at the ASIC annual forum, ASIO Director-General Mike Burgess revealed an unnamed overseas country has repeatedly tried to infiltrate Australia's transport, telecommunications and energy networks. Authoritarian regimes are growing more willing to disrupt or destroy critical infrastructure to damage the economy, undermine military capability and create social division, he stated.
"They see sabotage as a tool of coercion, disruption, distraction, and retaliation to test national resolve, readiness, and responses," Dr Burgess elaborated. Australian intelligence agencies anticipate the threat of foreign cyber sabotage will increase significantly between now and the early 2030s.
Economic Impact and AUKUS Targeting
Dr Burgess identified China and Russia as the primary perpetrators of cyber hacking and espionage activities, while noting that even friendly nations engage in spying for strategic advantage. Espionage cost Australia's economy at least $12.5 billion in 2024, with foreign intelligence services showing particular interest in the AUKUS nuclear submarine agreement.
The spy chief disclosed that ASIO has thwarted 24 major espionage and foreign interference attempts over the past three years. In one alarming case, a foreign state infiltrated the database of a major Australian exporter to gain unfair advantage in contract negotiations.
Corporate Espionage and Innovation Theft
Dr Burgess provided disturbing examples of how foreign operations are harming Australian businesses. In one instance, a state-sponsored group nearly bankrupted an Australian innovation company by stealing blueprints to mass-produce cheap copies of its products.
"Foreign companies connected to intelligence services have sought to buy access to sensitive personal data sets; sought to buy land near sensitive military sites, and sought to collaborate with researchers developing sensitive technologies," he added.
Head of the Australian Signals Directorate, Abigail Bradshaw, confirmed Australia remains a prime target for cyber infiltration, noting her agency had published a record number of attributions relating to state-based activities from China and Russia over the past 24 months.
