Australia's top intelligence official has raised alarms about the growing threat of espionage from state-backed Chinese hackers. Mike Burgess, the director-general of the Australian Security Intelligence Organisation (ASIO), spoke at a business forum in Melbourne, highlighting the risks to the nation’s critical infrastructure and telecommunications networks. He stated that the ongoing competition between major powers is leading to unprecedented levels of espionage, which is estimated to cost the Australian economy around $12.5 billion in the 2023-24 fiscal year.

Burgess described the current environment as one of "strategic surprise and security fragility." He warned that Australia is now facing significant threats, stating, "I have previously said we're getting closer to the threshold for high-impact sabotage. Well, I regret to inform you — we're there now."

He specifically mentioned Chinese hacking groups known as Salt Typhoon and Volt Typhoon, which have targeted telecommunications systems in both Australia and the United States. Burgess explained that Volt Typhoon's operations have compromised critical infrastructure networks, allowing potential sabotage capabilities. "The penetrations gave China the ability to turn off telecommunications and other critical infrastructure," he said.

While Burgess did not name China directly, he indicated that one nation is conducting multiple attempts to infiltrate critical infrastructure in Australia and other allied countries. He noted that these attempts have focused on essential services such as water, transport, telecommunications, and energy networks. He characterized the hacking activities as "highly sophisticated" and aimed at maintaining undetected access to systems for future sabotage.

Burgess emphasized the need for businesses to enhance their cybersecurity measures. He expressed concern that many Australians may not fully understand the potential impact of these threats. "I do not think we — and I mean all of us — truly appreciate how disruptive, how devastating, this could be," he said. He illustrated the potential consequences by referencing a recent outage of the Optus triple-zero emergency service, suggesting that a more extensive disruption could have catastrophic effects on society.

In addition to the cyber threats, Burgess warned of the possibility of foreign governments attempting to assassinate dissidents on Australian soil. He stated that state actors are actively exploring options to sabotage Australian interests, including stealing intellectual property and undermining companies for strategic advantages.

He also highlighted the rising threat of politically motivated violence and terrorism, attributing it to increasing anti-authority sentiments and conspiracy movements. "Growing levels of grievance, conspiracy and anti-authority beliefs are driving spikes in politically motivated violence and making acts of terrorism more likely," he said.

Burgess concluded by urging business leaders to take the threat seriously and to protect sensitive data. He noted that while the threats are significant, they are not insurmountable, stating, "The threats are foreseeable. The vulnerabilities are knowable. The risks are manageable."