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Australia at risk of ‘high-impact sabotage’ from China, says spy chief

Australia’s top spy chief has warned that Chinese state-linked hackers are actively probing the country’s critical infrastructure, significantly raising the threat of high-impact sabotage. Mike Burgess, director-general of the Australian Security Intelligence Organisation (ASIO), emphasized that unprecedented levels of espionage could lead to disruptive cyberattacks on essential services like telecommunications, water, and energy networks.

In a speech to business leaders in Melbourne, Burgess detailed how hacking groups associated with the Chinese government and military have targeted critical infrastructure in Australia and its allies. He specifically identified Salt Typhoon and Volt Typhoon as key actors, noting that their activities represent a coordinated effort to penetrate and map systems for potential future operations. Burgess highlighted that these groups are not merely engaged in espionage but are positioning themselves to cause widespread disruption if directed.

Salt Typhoon, focused on intelligence gathering, has successfully infiltrated telecommunications networks in the United States to access communications data, and similar probing has been detected in Australia. Burgess explained that this group’s primary intent is espionage, aiming to steal sensitive information that could compromise national security or provide strategic advantages. The persistence and sophistication of these attacks allow hackers to maintain undetected access, enabling them to act at a time of their choosing.

Volt Typhoon, in contrast, is designed with sabotage in mind, having compromised critical infrastructure in the U.S. to pre-position for potential disruptions. Burgess warned that this group’s actions could allow foreign actors to shut down telecommunications, pollute water supplies, or cripple energy grids during crises. He underscored that authoritarian regimes are increasingly willing to use such tactics to impede decision-making, damage economies, and sow social discord, with the potential for devastating impacts on daily life.

The spy chief pointed to real-world examples, such as short telecommunication outages unrelated to foreign interference, to illustrate how disruptive targeted attacks could be. He urged businesses and government agencies to enhance cybersecurity measures, noting that the cost of espionage to Australia was estimated at A$12.5 billion in 2023-24, including significant intellectual property theft. Burgess cited cases where foreign hackers stole blueprints and commercial secrets, nearly bankrupting Australian innovators and giving unfair advantages in global markets.

Beyond critical infrastructure, Burgess revealed that spies are aggressively targeting private sector projects, negotiations, and investments to gain commercial edges. He described instances where nation-state hackers stole sensitive data from major exporters, altering contract outcomes, and where restricted technology laboratories were breached by individuals with foreign government links. These activities highlight the broadening scope of espionage, which now extends to customer data and corporate innovations.

The warnings come amid heightened geopolitical tensions and reflect a global trend of increasing cyber threats from state actors. Burgess called for greater collaboration between industry and government to bolster defenses, emphasizing that the capabilities of these hackers are highly sophisticated and require proactive countermeasures. The Chinese embassy has been contacted for comment on the allegations, but no response was provided in the initial reports, leaving the situation under close monitoring by security agencies.

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