Cybersecurity in Australia: ASIC’s 2024 FY Report and What It Means for Your Business

In a world where we can order groceries online and have them delivered faster than we can find a matching pair of socks, you’d think we’d have our cybersecurity sorted by now, right? Well, not quite. According to ASIC’s 2024 FY report, while we’re making strides, Australia’s financial services sector still has some serious work to do when it comes to protecting itself from cyber threats. If you’re in the business world, particularly as an AFSL holder, this report is basically your wake-up call.?

So, let’s break down the key takeaways from ASIC’s latest report, because cybersecurity isn’t just an IT issue anymore—it’s a business survival issue.?

1. Cybersecurity: More Than Just a Buzzword for Directors?

ASIC chair Joe Longo made it clear in his recent address that cybersecurity isn’t just something you should think about when your IT team starts waving red flags. It should be “top of mind” for all directors and business leaders. Longo stressed that businesses are facing legal obligations to manage cyber risks, and those obligations aren’t going away anytime soon. If you’re sitting there thinking, “Yeah, but we’re too small to be targeted,” think again—cybercriminals love that kind of confidence!?

The message is simple: ignoring cyber threats is like leaving your front door wide open and hoping no one notices. And the consequences can be dire, as the cautionary tale of RI Advice shows.?

2. Lessons Learned from the RI Advice Debacle?

Picture this: between 2014 and 2020, RI Advice (an AFSL holder) faced multiple cyber incidents, including a brute force attack that went undetected for months. The result? Sensitive client data—thousands of files—was potentially compromised. The Federal Court ruled that RI Advice had breached its licence obligations by failing to have adequate cybersecurity systems in place. In short, they didn’t just drop the ball; they punted it into the neighbour’s yard.?

This case is a major warning for businesses: failing to take cybersecurity seriously can land you in hot water, legally and financially. The court ruling against RI Advice shows that businesses aren’t just encouraged to have strong cybersecurity—they’re required to. If you don’t meet the standard, expect regulators like ASIC to come knocking.?

3. Four Areas Where Businesses Need to Lift Their Cybersecurity Game?

In addition to the lessons from RI Advice, ASIC’s Cyber Pulse Survey identified four key areas where Australian businesses need to improve their cybersecurity practices. Think of this as your cybersecurity to-do list:?

• Supply Chain Risk Management: Your cybersecurity is only as strong as your weakest link—and that link might be a third-party vendor or partner. If they’re not up to scratch, your business is at risk. So, it’s not just about locking your doors, it’s about making sure everyone in your neighbourhood is doing the same!?

• Data Security: With the increasing volume of sensitive information being stored and transferred online, businesses need to prioritise data protection. It’s like carrying precious cargo—one bump in the road and it could all spill out.?

• Consequence Management: No one’s invincible. The trick isn’t to avoid cyber incidents altogether (although that would be nice) but to have a solid response plan when one happens. Think of it as a fire drill: you don’t wait until there’s a blaze to figure out how to escape.?

• Adoption of Cybersecurity Standards: Finally, ASIC strongly encourages the adoption of recognised standards like ISO 27001. If you’re not familiar, ISO 27001 is basically the gold standard of cybersecurity frameworks. It helps businesses systematically manage their data, protect against risks, and reduce the likelihood of breaches. Plus, it looks pretty good on paper for clients and partners.?

4. Cybersecurity Is a Cultural Issue (Not Just an IT Headache)?

One of the biggest takeaways from ASIC’s report is that cybersecurity needs to become part of a business’s culture. That means it’s no longer just something the IT team deals with—it’s everyone’s responsibility. From the boardroom to the breakroom, every employee needs to understand the importance of cybersecurity.?

Think of it like washing your hands—sure, you don’t have to do it, but if you don’t, sooner or later everyone’s going to end up sick. Cybersecurity is similar; if one person lets their guard down, the whole company could be at risk.?

5. ASIC Isn’t Messing Around?

The 2024 FY report makes one thing very clear: ASIC isn’t letting up when it comes to cybersecurity. They’ve got their eyes on businesses, and they’re not afraid to take action if they spot weak defences. More investigations are underway, and if RI Advice’s experience is anything to go by, ASIC is willing to take businesses to court for failing to meet their obligations.?

So, the question is: is your business prepared to defend against a cyber attack? If not, you might want to make it a priority—unless you fancy having ASIC breathing down your neck!?

How ISO 27001 Can Save Your Bacon?

If all this talk of legal obligations and cyber threats has you sweating, don’t panic—there’s a solution. Enter ISO 27001. This internationally recognised standard provides a comprehensive framework for managing information security. It helps businesses protect their data, meet regulatory requirements, and respond effectively to cyber incidents.?

But the benefits don’t stop there. Achieving ISO 27001 certification also:?

• Boosts your reputation: Clients and partners want to know that their data is safe with you. ISO 27001 demonstrates that you take security seriously.?

• Reduces costs: Dealing with a cyber attack can be expensive. Implementing ISO 27001 helps reduce the risk of breaches, which means fewer headaches (and invoices) down the line.?

• Improves compliance: As ASIC has made clear, businesses have legal obligations when it comes to managing cyber risks. ISO 27001 helps ensure you’re ticking all the right boxes.?

Get Ahead with Edara Systems?

If reading ASIC’s report has left you wondering whether your business is prepared to handle cyber threats, you’re not alone. Many businesses are in the same boat—but you don’t have to stay there. At Edara Systems, we specialise in helping businesses strengthen their cybersecurity posture and achieve ISO 27001 certification.?

We know that navigating the world of cybersecurity can be confusing and overwhelming, but we’re here to guide you every step of the way. Whether you need help building a robust cyber strategy, improving your incident response plan, or simply understanding where your risks are, we’ve got you covered.?

Don’t wait until you’re the next RI Advice—let’s chat about how we can help secure your business before it’s too late.?

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Feel free to reach out to discuss how Edara Systems can assist with your ISO 27001 certification and protect your business from future cyber risks. After all, it’s always better to be safe than hacked!?