Cybersecurity firm Fortinet has disclosed a recent security breach involving unauthorised access to a small number of files stored in a third-party cloud-based file-sharing system – yet another incident that insurance companies and brokers may wish to highlight with their clients to emphasise the financial security offered by cyber insurance.
The cyber incident affected less than 0.3% of Fortinet’s customer data, with no evidence of malicious activity or disruption to the company’s operations or services, according to Fortinet’s statement.
The company said that the breach did not involve ransomware, data encryption, or access to its corporate network.
Fortinet took immediate action, including revoking the unauthorised individual’s access, initiating an internal investigation, and notifying relevant authorities and global cybersecurity agencies.
Additionally, the company engaged a third-party forensics firm to verify its findings and implemented enhanced security measures, such as improved account monitoring and threat detection protocols.
It said that it does not expect the breach to have a material impact on its financial results.
The announcement comes as Australia experiences a surge in cyberattacks.
Cybersecurity firm Surfshark reported that 1.8 million Australian user accounts were compromised in the first quarter of 2024, marking a 388% increase from the prior quarter.
The firm also highlighted that around 140 million accounts have been breached in Australia since 2004, placing it among the top 15 countries globally for data breaches. Australia was also identified as one of the leading sources of phishing attacks, according to Zscaler’s 2024 Phishing Report.
Meanwhile, a separate study by New Zealand-based email security company SMX revealed significant vulnerabilities in how organisations in Australia and New Zealand enforce the DMARC (Domain-based Message Authentication, Reporting, and Conformance) protocol, a key safeguard against email-based attacks such as phishing.
Jamie Callaghan, chief security officer at SMX, emphasised the importance of DMARC enforcement, noting that while companies often focus on protecting their internal systems, DMARC also helps secure external communications by ensuring emails from the organisation are trusted.
SMX’s report found that 92% of Australian federal agencies had implemented DMARC, with 79% of those enforcing it – representing an improvement from previous years.
The report also noted an increase in private sector adoption of DMARC, with 60% of ASX-listed companies deploying it, up from 45% in 2022. However, enforcement levels in the private sector remain lower, with 47% of organisations enforcing the protocol.
The findings underscore growing concerns about the rising threat of email-based attacks across the region. Experts, including Callaghan, encourage both small and large businesses to prioritise DMARC adoption and enforcement.
Callaghan stressed the need for companies to work closely with IT professionals to make DMARC a standard practice in their security protocols.
The cybersecurity challenges facing Australian and New Zealand businesses are part of broader trends across the Asia-Pacific region.
A separate survey by IT security company LogRhythm revealed a disconnect between cybersecurity executives’ confidence in their systems and customers’ trust. While 85% of APAC security leaders rated their defences as effective, 46% of companies have faced customer concerns over cybersecurity failures, prompting many to reassess their security strategies.
The survey also pointed to the increasing use of artificial intelligence (AI) in managing cybersecurity threats, with 77% of respondents citing AI’s role in threat detection and response. However, communication between security teams and non-technical leadership remains a challenge, with nearly 60% of respondents indicating difficulties in conveying security information to executives.
In response to the evolving threat landscape, the report noted that cybersecurity budgets have increased across the region, with 84% of companies reporting higher investments in cybersecurity – exceeding the global average of 76%.
Despite these increased budgets, many companies still struggle to quantify the effectiveness of their security programs in operational terms, often focusing on breaches rather than metrics such as response times or threat detection rates.
