Cyber Threats

• Cyber threats in the Asia-Pacific region are increasing, driven primarily by AI-powered phishing attacks and state-linked espionage. • Data breaches remain the most significant threat, with India reporting the highest number of incidents at 3,144 (14.7% of the total). • Other heavily impacted nations include Australia with 2,537 incidents, Japan with 2,282, South Korea with 1,978, and Singapore with 963.

• Cyber threats in the Asia-Pacific region are increasing due to the rise of AI-driven phishing attacks and state-linked espionage, with data breaches remaining the primary threat. • India reported the highest number of incidents at 3,144 (14.7% of the total), followed by Australia with 2,537, Japan with 2,282, and South Korea with 1,978. • Other significant regional impacts include Singapore, which ranked sixth with 963 incidents, and Hong Kong, which placed 14th with 329.

• Cybersecurity teams are preparing for a new era of threats in 2026, where securing AI models is as critical as defending cloud and network infrastructure. • Key emerging risks include prompt injection, AI-driven phishing, deepfakes, model poisoning, and the proliferation of "Shadow AI" within enterprises. • These threats matter because they exploit the unique vulnerabilities of large language models to bypass traditional security perimeters and manipulate data.

• India’s second Digital Threat Report for the BFSI sector reveals that six out of seven emerging cyber threats predicted last year have already become fully operational. • Attackers are leveraging artificial intelligence, stolen identities, and manipulated payment workflows to create fraudulent activities that closely mimic legitimate transactions. • This trend highlights a critical escalation in the sophistication of cyberattacks targeting banks and financial institutions, making detection significantly more difficult.

• EY India launched Cyber Performance Management (CPM) on July 9, marking a strategic shift from traditional advisory services toward proprietary technology platforms. • The new platform integrates cyber intelligence, risk quantification, and business decision-making to help organizations combat threats amplified by Artificial Intelligence. • This move is driven by the fact that AI is lowering the barriers for cyberattacks, necessitating more automated and data-driven defense mechanisms.

• The AI infrastructure security market is projected to grow at a compound annual growth rate (CAGR) of 19.1% through 2030, driven by an increase in sophisticated cyber threats. • Growth is centered on the development of automated threat detection, enhanced real-time monitoring, and the expansion of security frameworks for AI systems. • Global tariffs in North America, Europe, and Asia-Pacific are currently increasing the cost of imported security hardware and advanced tools.

• The UK government is developing "Cyber Shield," a national AI-powered cyber defense program designed to protect critical infrastructure from sophisticated digital threats. • The system aims to detect threats and automate responses at machine speed to counter the increasing capabilities of AI-driven attacks. • This initiative is a response to warnings from officials that AI is currently shifting the strategic advantage toward attackers, straining conventional security measures.