AI is reshaping the business landscape in powerful ways. While it opens doors to innovation and efficiency, it also provides cybercriminals with tools that make phishing scams harder to detect and easier to launch. One emerging threat that is gaining attention is AI-powered phishing targeting small and medium-sized businesses across Australia.
What makes this different?
Traditional phishing relies on generic scams and guesswork. Now, with AI, attackers can use public data, such as social media and business websites, to craft messages that appear highly personal and convincing. They can mimic familiar contacts such as colleagues, suppliers or landlords. AI can even generate content that bypasses spam filters and seems authentic enough to deceive vigilant staff.
According to Business News Australia, phishing was the third most reported scam to ScamWatch in 2024. It also accounted for over a third of incidents reported to the Office of the Australian Information Commissioner. These numbers show the scale of the challenge.
Why SMEs are especially at risk
Most small businesses lack dedicated cybersecurity teams, making them more vulnerable to attacks. With the average cost of a cyber incident reaching nearly $50,000 for SMEs in the last financial year, the impact can be significant.
What can be done?
Here are some practical steps businesses can take to reduce risk:
- Provide cybersecurity education to staff so they can recognise suspicious emails, messages and links. Free programs like Cyber Wardens are a helpful starting point.
- Confirm requests for payments or sensitive information through an alternative method, such as a phone call or in-person conversation.
- Utilise password managers and enable multi-factor authentication whenever possible to enhance account security.
- Regularly update software and systems to ensure that vulnerabilities are promptly patched.
Having a recovery plan in place is also essential. Cyber liability insurance can help with costs related to data recovery, lost revenue and customer communication. Many providers also offer round-the-clock support if an incident occurs.
Final thoughts
AI-powered phishing is a growing risk, but the solutions do not rely solely on technology. Human awareness and good habits remain critical. With the right mix of education and tools, Aussie SMEs can build resilience and respond effectively when threats arise.
Cybermate is here to support you with practical solutions that work for your team and business needs.
