Key Points:
- Western Australia’s defence industry is being targeted for espionage by foreign intelligence services.
- In 2023-24, foreign espionage cost the Australian economy at least $12.5bn.
- ASIO urges WA defence industry organisations and businesses to develop strong security practices and report suspicious approaches.
Foreign intelligence services are aggressively targeting the Western Australian defence industry, according to Australia’s security service.
The Cost of Espionage
The Australian Security Intelligence Organisation (ASIO) is urging the sector to strengthen its defences against espionage.
A recent report released by ASIO, The Cost of Espionage, estimated that espionage cost the Australian economy $12.5bn in 2023-24. The research, conducted by the Australian Institute of Criminology, found that figure is likely to substantially underestimate the true cost of espionage.
The ASIO Director-General of Security, Mike Burgess, warned that foreign spies have developed “an unhealthy interest” in Australia’s maritime and aviation-related military capabilities, as well as innovations with both commercial and military applications.
“Australia’s defence sector is a top intelligence collection priority for foreign governments seeking to blunt our operational edge, gain insights into our operational readiness and tactics, and better understand our allies’ capabilities,” Mr Burgess said.
Fraudulent Approaches
In one example provided by ASIO, an Australian defence contractor invented, manufactured and marketed a world-leading innovation. Sales boomed but suddenly collapsed, for no apparent reason.
Customers began flooding the company’s repair centre with faulty products. While the returns looked genuine, closer examination revealed they were cheap, nasty knock-offs. An investigation uncovered what happened.
One year earlier, company representatives had attended a defence industry event overseas and were approached by an enthusiastic local. She insisted on sharing some content with them via a USB, which they inserted into a company laptop. The USB infected the system with malware that allowed hackers to steal the blueprints for the product.
Almost certainly, the ‘enthusiastic local’ was working for a foreign intelligence service, which gave the blueprints to a state-owned enterprise that mass-produced the knock-offs at Australia’s expense – the tangible cost of espionage.
Your Security Obligations
Mr Burgess urged organisations to uplift their security by fostering good security culture. That includes understanding threats, identifying risks and then managing those risks.
If you are a government worker or security clearance holder, you have an obligation to report suspicious approaches. Contact your security manager and fill out a contact report. Other workers can report suspicious approaches to ASIO’s Notifiable Incidents, Threats or Reportable Observations (NITRO) portal at nitro.asio.gov.au or by calling the National Security Hotline on 1800 123 400.
To read the AIC’s research report, visit www.asio.gov.au/coe.
ANALYSIS & COMMENTARY
Protecting Australian Defence Industry from Espionage
Share This
The Australian Security Intelligence Organisation Director-General of Security, Mike Burgess. Source: ASIO. Supplied.
Key Points:
Foreign intelligence services are aggressively targeting the Western Australian defence industry, according to Australia’s security service.
The Cost of Espionage
The Australian Security Intelligence Organisation (ASIO) is urging the sector to strengthen its defences against espionage.
A recent report released by ASIO, The Cost of Espionage, estimated that espionage cost the Australian economy $12.5bn in 2023-24. The research, conducted by the Australian Institute of Criminology, found that figure is likely to substantially underestimate the true cost of espionage.
The ASIO Director-General of Security, Mike Burgess, warned that foreign spies have developed “an unhealthy interest” in Australia’s maritime and aviation-related military capabilities, as well as innovations with both commercial and military applications.
“Australia’s defence sector is a top intelligence collection priority for foreign governments seeking to blunt our operational edge, gain insights into our operational readiness and tactics, and better understand our allies’ capabilities,” Mr Burgess said.
Fraudulent Approaches
In one example provided by ASIO, an Australian defence contractor invented, manufactured and marketed a world-leading innovation. Sales boomed but suddenly collapsed, for no apparent reason.
Customers began flooding the company’s repair centre with faulty products. While the returns looked genuine, closer examination revealed they were cheap, nasty knock-offs. An investigation uncovered what happened.
One year earlier, company representatives had attended a defence industry event overseas and were approached by an enthusiastic local. She insisted on sharing some content with them via a USB, which they inserted into a company laptop. The USB infected the system with malware that allowed hackers to steal the blueprints for the product.
Almost certainly, the ‘enthusiastic local’ was working for a foreign intelligence service, which gave the blueprints to a state-owned enterprise that mass-produced the knock-offs at Australia’s expense – the tangible cost of espionage.
Your Security Obligations
Mr Burgess urged organisations to uplift their security by fostering good security culture. That includes understanding threats, identifying risks and then managing those risks.
If you are a government worker or security clearance holder, you have an obligation to report suspicious approaches. Contact your security manager and fill out a contact report. Other workers can report suspicious approaches to ASIO’s Notifiable Incidents, Threats or Reportable Observations (NITRO) portal at nitro.asio.gov.au or by calling the National Security Hotline on 1800 123 400.
To read the AIC’s research report, visit www.asio.gov.au/coe.
About the Author:
Michael Burgess, AM
Director General of Security, Australian Security Intelligence Organisation