Hidden in the supply chain: How foreign interference is targeting Australian businesses
Hidden in the supply chain: How foreign interference is targeting Australian businesses
Australian businesses are increasingly at risk of being subject to foreign interference through the very technology supply chains that keep them competitive.
According to BDO Risk Advisory Services Partner, Luke Eason, the risk is no longer confined to obvious targets like defence contractors or critical infrastructure providers.
“Complex webs of third, fourth and even fifth-party suppliers, coupled with opaque “black box” artificial intelligence tools, are creating unseen pathways for hostile actors to gain access to sensitive systems and data,” Luke said.
“A key concern is that seemingly low-risk organisations may be used as stepping stones into higher-risk sectors.
“For example, a small software firm providing code to a major defence contractor could become a target without realising it.
“With the rapid adoption of generative AI, the picture is becoming even murkier, as businesses deploy models trained, hosted and influenced in ways they may never fully understand.”
Luke said risk management programs need to keep up with this new frontier of foreign interference
“The complexity of today’s technology supply chains means the weakest link might be three or four steps removed from your own business,” he said.
“Add AI into the mix - where it’s often impossible to know who trained a model, what data it used, or where it’s managed - and you have a whole new set of risks that, in many cases have never been fully assessed”.
However, foreign interference is not limited to cyber-attacks or data theft.
“We’re seeing tactics that range from embedding ‘trusted insiders’ in the supply chain, to fake remote workers and social engineering of technology staff. These approaches can bypass even the strongest cyber defences if organisations aren’t looking for them,” Luke said.
To be best prepared, executives need to bring foreign interference risks onto the board agenda and to challenge assumptions about their exposure, no matter how far removed they believe they are from sensitive sectors.
“In an environment where geopolitical tensions are high and digital competitive advantage is critical; vigilance must extend well beyond the immediate supplier list.
“The question isn’t whether you’re a target, it’s whether you’ve looked far enough into your supply chain to find out.”
For media enquiries:
Tate Papworth
Manager, Media
E: Tate.Papworth@bdo.com.au
Ph: 0433411189