Australia’s spy chief warns of Chinese hackers

• Australia accuses Chinese hackers of targeting infrastructure.
• ASIO warns Chinese hacker groups could plan sabotage.

Australia’s intelligence chief has warned that hackers linked to the Chinese government are trying to infiltrate the country’s critical infrastructure, including telecommunications networks.

Speaking at a business forum in Melbourne, Mike Burgess, director general of the Australian Security and Intelligence Organisation (ASIO), said the nation faces the risk of “high-impact sabotage.”

Burgess cited two hacking groups—Salt Typhoon and Volt Typhoon—that he said operate under China’s government and military. Both have targeted the United States.

“Salt Typhoon’s intent was espionage,” Burgess said. “They penetrated the United States’ telecommunications system to gain access to the nation’s communications through a strategic spying operation. We have seen Chinese hackers probing our critical infrastructure as well.”

He explained that Volt Typhoon aimed to compromise American networks and “pre-position for potential sabotage.” Burgess said the breaches gave China the ability to disrupt essential services, adding, “And yes, we have seen Chinese hackers probing our critical infrastructure as well.”

He did not say which groups had tried to access Australian systems or whether they had succeeded. “Once access is gained—the network is penetrated—what happens next is a matter of intent, not capability,” Burgess said. “I don’t think we— and I mean all of us—truly appreciate how disruptive, how devastating this could be.”

Burgess said infrastructure across Western allies, including transport, water, and energy networks, has also been targeted. The Chinese embassy was contacted for comment.

The infiltration of US telecom systems by Salt Typhoon late last year has been called the worst hack in American history. The breach affected dozens of US telecom companies and exposed data belonging to senior political figures, including President-elect Donald Trump, incoming Vice President JD Vance, and Democratic candidate Kamala Harris.

Earlier this year, Burgess warned that espionage-driven sabotage could cost Australia more than $1 billion. If such disruptions lasted a week, he said, the losses could climb to $6 billion.

He also shared new cases of espionage against Australian companies. One major exporter, he said, lost commercially sensitive information to “nation-state hackers,” giving the attackers an advantage in contract talks. “In another case, they stole the blueprints of an Australian innovation and mass-produced cheap knock-offs that nearly bankrupted the innovator,” he said. “A visiting academic with links to a foreign government broke into a restricted technology lab and filmed its contents.”

Addressing the forum, hosted by the Australian Securities and Investments Commission, Burgess said ASIO has seen a rise in anarchist and revolutionary extremism, often directed at businesses. “Since October ’23, anti-Israel activists have increasingly used disruptive tactics such as arson, vandalism, and violent protests targeting companies accused of providing weapons components,” he said.

He added that rapid advances in technology are fueling these threats. As reported by ABC NewsBurgess urged business leaders to strengthen their systems and safeguard data, warning that the threat of foreign interference “keeps [him] up at night.”

“The loss of availability in any part of our critical infrastructure can be devastating,” he said. “That’s one phone network not working for less than one day. Imagine if a nation-state took down all networks? Or turned off the power during a heatwave? Or polluted our drinking water? Or crippled our financial system?”

Burgess said these are not theoretical risks. State-backed hackers, he warned, are already exploring ways to disrupt systems, steal trade secrets, cause chaos during elections, or weaken Australia’s ability to support allies in a conflict.

“Some of the scenarios the Australian Institute of Criminology modelled for our Cost of Espionage report were eye-opening and eye-watering,” he said. “The cyber-enabled sabotage of critical infrastructure will cost the economy $1.1 billion per incident. An economy-wide, week-long disruption will cost $6 billion.”

He added that espionage is only one part of a growing threat. Rising anti-authority beliefs and conspiracy movements are driving more aggressive and violent behaviour. “They are behaving more aggressively, more recklessly, more dangerously. More willing to engage in what we call ‘high harm’ activities,” he said.

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