In 2023–24, espionage incidents cost Australia a staggering $12.5 billion. This figure, revealed in a report by ASIO and the Australian Institute of Criminology, reflects both direct and indirect losses—from stolen intellectual property to the costs of preventing and investigating threats.
But what the number doesn’t show is just how far-reaching the impact is.
Understanding the Threat
Espionage, in this context, refers to foreign entities stealing Australian information for strategic gain. These incidents often go unnoticed until it’s too late. While some involve complex cyber intrusions, others take place in person—with stolen files, infected USBs, and fake identities.
According to ASIO Director-General Mike Burgess, a growing part of this problem is cyber-enabled. State-sponsored actors are increasingly sophisticated in how they access, steal, and exploit sensitive data from both public and private sectors.
The report showed that cyber espionage alone led to nearly $2 billion in losses from stolen trade secrets and intellectual property last year. These attacks are not just random—they’re calculated, well-funded, and designed to benefit foreign interests at the expense of Australian innovation and security.
Real-World Cases, Real-World Consequences
The report detailed multiple incidents that paint a clear picture of how espionage operates in today’s world.
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Breach of a Major Exporter
A foreign group hacked into the network of a leading Australian exporter. They gained access to commercially sensitive data, which they used to outmanoeuvre Australia in contract negotiations. The result? Hundreds of millions lost.
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Stolen Agricultural R&D
A foreign delegation visited a high-security horticultural site. One member wandered into a restricted area and took photos of a rare fruit tree. A staff member caught them and deleted the photos—but later, branches of the tree were discovered missing. Those samples were likely used overseas to recreate 20 years of Australian research.
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Defence Innovation Sabotaged
An Australian defence contractor developed a leading-edge product that initially saw strong sales. But then, sales dropped and a wave of faulty returns flooded the company’s service centre. These were fake replicas made from stolen blueprints—obtained via malware planted through an infected USB drive given to a company rep at an overseas conference.
This breach alone cost the business millions in lost revenue. It’s a classic example of how ethical hacking and white hat hacking practices—if employed earlier—might have helped detect and block the attack.
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The Hidden Costs
The $12.5 billion figure only includes what can be verified and measured. But espionage has consequences that can’t always be quantified: loss of strategic edge, compromised national security, and erosion of public trust.
Even more concerning is what’s still unknown. As Burgess noted, many victims don’t realise they’ve been targeted until long after the damage is done.
Ethical hacking and white hat hacking approaches—testing systems before bad actors get in—are becoming vital, not optional. Companies must move beyond the assumption that traditional cybersecurity will keep them safe. Advanced threats demand equally advanced responses.
Espionage is Evolving
It’s not just defence or government agencies being targeted. Cyber spies now focus heavily on sectors like –
- Science and technology
- Green energy projects
- Rare earth and mineral resources
- Antarctic research
- Public-private sector joint ventures
Burgess warned that foreign services were expanding their reach into both commercial and academic spaces. Even seemingly unclassified data—like early-stage research or commercial plans—can give foreign actors a tactical edge.
He noted an alarming interest in AUKUS-related technologies, particularly maritime and aviation capabilities. Australia’s involvement in AUKUS doesn’t just make it a target—it also makes every collaboration and piece of shared intelligence a potential espionage risk.
In-Person Threats Still Exist
While cyber attacks dominate headlines, traditional spying hasn’t gone away. ASIO has disrupted 24 major foreign interference efforts in the last three years—more than the previous eight years combined. These include –
- Attempts to recruit government employees with security clearances.
- Foreign investors trying to buy land near military bases.
- Front companies seeking access to personal data sets.
- Covert influence in media and academia to sway narratives or collect insider information.
In one case, defence employees travelling abroad were followed, their hotel rooms searched, and gifts embedded with surveillance devices were planted. In another, agents applied for Australian government jobs to gain access to classified data.
Why are CEOs still ignoring cybersecurity breaches?
Russia and Beyond
While Russia remains an aggressive actor—evidenced by the removal of undeclared intelligence officers in 2022—it’s not alone. China, Iran, and many others continue to expand their espionage operations.
Burgess remarked that Australians would be “genuinely shocked” by the number of countries targeting the nation’s secrets. These efforts aren’t limited to high-level data. Even minor insights can be stitched together to build a clearer picture of Australia’s capabilities and intentions.
Why Prevention Matters
Stopping one espionage attempt can save the country billions. ASIO believes its countermeasures prevented tens of billions in additional losses last year alone. But success depends on forward-looking defence—especially in digital spaces.
White hat hacking—ethical attempts to probe a system’s weaknesses—can help organisations stay a step ahead. FEA tools, zero-trust frameworks, strict access controls, and employee training all play a role. But they must be consistent, proactive, and treated as part of a larger security culture.
Companies can’t wait for an attack to start thinking about cybersecurity. Investing early in systems, audits, and ethical hacking services gives organisations a fighting chance against increasingly skilled adversaries.
What Now?
As espionage threats grow in number and complexity, Australia’s defences must keep pace. Not just for ASIO or the federal government, it requires a whole-of-nation response—from businesses securing trade secrets to universities protecting research labs.
Espionage doesn’t always come with a red flag. It often looks like a friendly conversation, a curious intern, or a seemingly harmless USB stick. The losses may take months or years to appear. But by then, the damage is already done.
If you’re in the private sector—especially defence, tech, energy, or research—it’s no longer a question of “if” you’ll be targeted, but “when.” Staying prepared, and engaging ethical hacking teams when necessary, is no longer optional.
Cybernetic Global Intelligence supports Australian organisations in securing their digital assets, identifying weaknesses, and navigating complex threat landscapes. Whether through vulnerability assessments, white hat hacking simulations, or compliance guidance, our team helps businesses stay ahead of espionage and cyber threats.
In a world where stolen data can cost billions, preparation is your best defence.