Australian firms falling behind in cybersecurity investments

Australian businesses are reportedly unprepared for cyberattacks and are not investing adequately in cybersecurity, as per a recent report by JumpCloud, a cloud-based IT firm.

JumpCloud's research titled 'From Chaos to Control: Simplifying IT in the Fast Lane of Change' surveyed 300 Australian IT practitioners and decision-makers in November 2024. The study highlighted several critical challenges faced by Australian businesses, including a high incidence of data breaches, insufficient cybersecurity investment, complications arising from AI, and the desire for more unified security solutions.

The report reveals that over half of Australian businesses experienced a cyberattack in 2024, a rate higher than that observed in the United States and the United Kingdom, where the incidences were 41% and 45% respectively.

Despite the increased threat levels, Australian and UK firms are spending less on cybersecurity compared to their US counterparts.

Specific concerns around AI were prominent, as 70% of Australian organisations reported that AI is advancing faster than their ability to defend against the associated threats.

AI-generated attacks were experienced by 36% of organisations, as opposed to 29% in the UK and 33% in the US. Additionally, opinions on AI deployment in the workplace are divided; 42% of companies encouraged its use whereas 33% restricted access to AI tools like ChatGPT.

Rajat Bhargava, CEO and co-founder of JumpCloud, commented on these findings. "Australian businesses urgently need better security and are prepared to increase spending on defence. But they're struggling with the sheer number and complexity of solutions available and navigating the opportunities and potential threats that AI represents. According to the data, Australian businesses are less likely to use a managed service provider (MSP) to support their IT needs, mostly due to cost, though many anticipate boosting their investment. There's an opportunity for MSPs to offer a more prominent role in cybersecurity, particularly when it comes to managing cybersecurity tools and SaaS," said Bhargava.

The complexity of IT systems also poses significant challenges with 84% of respondents expressing a desire for a singular platform to manage identity, access, and security.

Many businesses are currently using between five to ten tools or more for employee lifecycle management, with some using over 15 different systems.

Remote working conditions are exacerbating these difficulties. 42% of firms face increased costs in managing remote work solutions, while 38% are dealing with ongoing management challenges for remote employees. Employees are similarly affected, with one quarter having to remember more than ten passwords to access IT resources.

Reductions in workforce add another layer of difficulty. Over half of the businesses have undergone layoffs and 54% are expecting additional reductions.

Notably, concerns about job security amid AI advancements are higher in Australia, with 48% of tech leaders and practitioners worried about AI's impact on employment, compared to 27% in the UK and 35% in the US.

The report implies that while Australian organisations are recognising the need to heighten their cybersecurity measures and integrate more cohesive IT management systems, there are still significant hurdles to overcome, particularly in the areas of cybersecurity expenditure, AI management, and remote work complexities.